Southern Cities Lead in Ultra-Luxury Home Sales in FY26
New Delhi, May 5 (PTI) The southern cities of Hyderabad, Bengaluru, and Chennai have witnessed a robust demand for ultra-luxury homes, with a combined sales figure of 811 units in the fiscal year 2025-26, amounting to Rs 11,246 crore. This impressive performance is highlighted in a report released by real estate consultant India Sotheby's International Realty and real estate data analytics firm CRE Matrix.
Hyderabad emerged as the frontrunner among these three cities, with 625 luxury units sold for Rs 8,562 crore. The city's strong demand for large, ultra-luxury homes has set a new benchmark for the southern real estate market. Bengaluru, known for its tech-savvy population, saw the sale of 128 luxury units for Rs 1,957 crore. Chennai, a city steeped in tradition and history, recorded the sale of 58 luxury homes valued at Rs 727 crore.
For a budget of Rs 10 crore, buyers in Hyderabad can acquire a spacious 6,210 sq ft area, while in Chennai and Bengaluru, the same budget can fetch 4,290 sq ft and 3,930 sq ft, respectively. These figures reflect the varying real estate dynamics in each city, influenced by factors such as demand, economic growth, and property development.
Ashwin Chadha, CEO of India Sotheby's International Realty, noted that the luxury housing market in South India is characterized by distinct identities. 'Hyderabad has the scale, Bengaluru has the velocity, and 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,' he said.
Abhishek Kiran Gupta, Co-founder and CEO of CRE Matrix, emphasized that the luxury real estate market in South India 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.
The report also identified key micro-markets for ultra-premium developments. Kokapet in Hyderabad and Rajanukunte in Bengaluru have emerged as leading areas, attracting significant investments and development. These micro-markets are expected to drive further growth in the luxury housing sector in the coming years.
India Sotheby's International Realty, a leading real estate consultancy, has been instrumental in shaping the luxury real estate market in India. The company leverages its global network and expertise to provide comprehensive services to clients, from property acquisition to investment advisory. CRE Matrix, on the other hand, specializes in real estate data analytics, offering valuable insights and market intelligence to stakeholders in the industry.
The surge in luxury home sales in these southern cities reflects a growing trend towards premium living and investment in high-end real estate. As the economy continues to recover and consumer confidence remains strong, these markets are poised for sustained growth and development.
