Southern India’s premium housing segment recorded strong traction in FY26, with over 800 ultra-luxury homes priced above ₹10 crore sold across Bengaluru, Hyderabad, and Chennai, according to a recent industry report. The total transaction value stood at approximately ₹11,246 crore, indicating sustained demand for high-end residential properties in key urban markets.
The report, released by India Sotheby’s International Realty in collaboration with CRE Matrix, highlights distinct trends across the three cities, each contributing differently to the overall growth of the luxury housing segment.
City-Wise Performance and Market Trends
Hyderabad emerged as the leading market in terms of volume and value, accounting for the majority of transactions. The city recorded 625 units sold, valued at ₹8,562 crore, driven by demand for larger homes and better space value.
Bengaluru followed with 128 luxury units worth ₹1,957 crore, showing strong growth momentum and increasing demand for premium living spaces. Chennai recorded 58 units totaling ₹727 crore, reflecting a relatively niche but stable luxury segment.
The report also indicates variation in space affordability, with buyers receiving significantly larger units in Hyderabad compared to Bengaluru and Chennai for similar price points.
Bengaluru’s Growing Premium Demand
Bengaluru’s luxury market, which saw 128 units sold for nearly ₹2,000 crore, is fueled by its reputation as a global technology powerhouse. The city’s status as a top 10 global tech hub and its recent climb to the 14th spot in the 2025 Global Startup Ecosystem Rankings have created a high concentration of affluent professionals seeking ultra-luxury homes. This demand is further supported by high-impact employment hubs, such as the new AI-driven “Nano GCCs” by Raksul.
Key Highlights of the Report
- Total Units Sold: 811 luxury homes
- Total Transaction Value: ₹11,246 crore
- Price Segment: ₹10 crore and above
- Top Market: Hyderabad (highest volume and value)
- Emerging Growth Market: Bengaluru
- Niche Segment: Chennai
Real Estate Impact Across Southern Cities
The rise in ultra-luxury home sales signals a shift in buyer preferences toward larger, premium residences, particularly among high-net-worth individuals and senior professionals. Bengaluru’s growing demand reflects its evolving residential landscape, where luxury housing is expanding beyond traditional prime locations.
Hyderabad’s dominance highlights its competitive pricing and availability of larger homes, while Chennai continues to maintain a steady demand rooted in established high-value localities.
This trend is expected to influence new project launches, with developers focusing more on premium configurations, larger layouts, and high-end amenities to cater to affluent buyers.
Market Comparison Table
| City | Units Sold | Sales Value (₹ crore) | Market Position |
|---|---|---|---|
| Hyderabad | 625 | 8,562 | Volume leader |
| Bengaluru | 128 | 1,957 | High growth market |
| Chennai | 58 | 727 | Niche luxury segment |
| Total | 811 | 11,246 | Strong regional demand |
Conclusion
The performance of the luxury housing market in FY26 reflects continued confidence in India’s premium real estate segment. With increasing wealth creation, demand for larger homes, and evolving lifestyle preferences, the segment is expected to remain active in the coming years.
Developers are likely to focus on differentiated offerings across cities, as market dynamics vary significantly in terms of pricing, space availability, and buyer expectations.
Also Read: Karnataka Cabinet Clears ₹18,000 Crore Bidadi Township Project
Alkka Roy writes about real estate trends, property insights, and investment opportunities, helping readers make informed decisions in a dynamic market.
Related news
