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.