South India's Ultra-Luxury Housing Market Surges: 811 Sales Worth ₹11,246 Crore in FY26
South India’s housing market is no longer just about mid-income demand—it is now firmly seeing a surge at the very top end. According to a joint report by India Sotheby's International Realty and CRE Matrix, three southern cities—Hyderabad, Bengaluru, and Chennai—recorded 811 ultra-luxury home sales (₹10 crore and above) worth a combined ₹11,246 crore in FY26.
Hyderabad dominates—by a wide margin
Hyderabad has emerged as the clear leader in South India’s ultra-luxury segment:
625 units sold Total value: ₹8,562 crore That’s nearly: 77% of total ultra-luxury sales across the three cities The driver? Space and value.
At ₹10 crore:
Buyers get 6,210 sq ft in Hyderabad Compared to:
3,930 sq ft in Bengaluru 4,290 sq ft in Chennai Hyderabad offers significantly larger homes at similar price points, making it highly attractive for luxury buyers.
Bengaluru: Smaller volumes, strong momentum
Bengaluru recorded:
128 units sold Value: ₹1,957 crore While volumes are lower than Hyderabad, the city stands out for:
Rising demand for premium living Strong tech-driven wealth creation Rapid transformation of new micro-markets Experts say Bengaluru represents: “velocity”—faster growth potential even if current scale is smaller
Chennai: Legacy market, slower pace
Chennai saw:
58 units sold Value: ₹727 crore Chennai’s luxury market remains:
More conservative Rooted in legacy ownership Slower to scale compared to peers But it continues to attract buyers looking for:
Stability and long-term prestige Ashwin Chadha, CEO, India Sotheby's International Realty, said, “The story of South India's luxury housing is a story of three distinct identities.” Hyderabad has the scale while Bengaluru has the velocity, he added.
“Chennai remains anchored in legacy prestige. We believe Bengaluru is the market to watch for immediate growth, while Hyderabad has set a new benchmark for ultra-luxury volume in southern India,” Chadha said.
Abhishek Kiran Gupta, Co-founder & CEO, CRE Matrix noted that the South India's luxury market has reached a pivotal inflection point.
“Hyderabad's leadership is backed by structural fundamentals - space-value and sustained demand for large floor plates. Bengaluru's transformation proves that premium living is no longer confined to heritage addresses. For investors, the signal is clear: differentiate strategies by city, not just by segment,” Gupta added.
Kokapet in Hyderabad and Rajanukunte in Bengaluru emerge as the leading micro-markets for ultra-premium developments, the consultant said.
