Hyderabad: Hyderabad has officially emerged as the top ultra-luxury housing market in South India, recording an impressive ₹8,562 crore worth of luxury home sales in the ₹10 crore-plus category during FY 2025-26, according to a new report released by India Sotheby’s International Realty in collaboration with CRE Matrix.
The report highlights the massive transformation taking place in Hyderabad’s premium real estate segment, with the city now significantly outperforming traditional luxury housing destinations like Bengaluru and Chennai.
According to the report, Hyderabad’s ultra-luxury residential market generated more than four times the sales value of Bengaluru, which recorded ₹1,957 crore in high-end housing transactions during the same period. Chennai remained far behind at ₹727 crore.
Luxury Real Estate Market Expands 3.5 Times in Four Years
The report states that Hyderabad’s luxury housing segment has expanded nearly 3.5 times over the past four years, driven by increasing demand from:
- High-net-worth individuals (HNIs)
- IT entrepreneurs and startup founders
- Pharma and business executives
- NRIs investing in premium Indian real estate
- Wealthy professionals seeking larger homes
Industry experts say Hyderabad’s combination of better infrastructure, comparatively lower luxury property prices, wider roads, expanding commercial corridors, and availability of large land parcels has helped the city become one of India’s fastest-growing luxury housing destinations.
Bigger Homes Becoming the New Trend
The report revealed a strong shift toward large-format homes and luxury villa communities in Hyderabad.
Among the key findings:
- 57% of ultra-luxury transactions involved apartments larger than 8,000 square feet
- Villas and row houses contributed nearly 40% of the total luxury sales value
- Luxury buyers in Hyderabad received substantially larger homes compared to other metros for similar investment values
For example, buyers spending around ₹10 crore in Hyderabad reportedly get an average home size of approximately 6,200 sq ft, significantly higher than what buyers receive in Bengaluru or Chennai.
This growing preference for larger living spaces accelerated after the pandemic, with wealthy buyers increasingly prioritizing:
- Private open spaces
- Home offices
- Clubhouses and wellness facilities
- Low-density gated communities
- Premium villa developments
Western Hyderabad Driving the Luxury Boom
The majority of Hyderabad’s ultra-luxury housing activity is concentrated in the western parts of the city, particularly around the rapidly expanding IT and Financial District corridors.
Major luxury hotspots include:
- Kokapet
- Neopolis
- Financial District
- Narsingi
- Aziz nagar
- Puppalaguda
- Tellapur
- Gandipet
- Raidurg
- Osman Nagar
These areas have witnessed rapid growth in premium residential towers, branded residences, sky villas, and luxury gated villa communities.
Developers are increasingly focusing on ultra-premium projects offering:
- Private elevators
- Luxury concierge services
- Sky lounges
- High-end security systems
- Resort-style amenities
Strong Demand From NRIs and Investors
Real estate consultants say a significant portion of Hyderabad’s luxury sales are being driven by NRIs, especially buyers from:
- United States
- Middle East countries
- United Kingdom
- Australia
Many investors are viewing Hyderabad as a safer and more affordable luxury investment destination compared to Mumbai, Delhi, or Bengaluru.
The city’s booming IT sector, data center investments, pharmaceutical growth, startup ecosystem, and expanding infrastructure projects are further strengthening buyer confidence.
Luxury Segment Continues to Attract Developers
With demand continuing to rise, major real estate developers are aggressively launching premium projects across Hyderabad. Several new launches in Kokapet, Neopolis and Financial District have seen strong bookings within weeks of launch.
Developers are also focusing on:
- Branded luxury residences
- High-rise premium towers
- Exclusive villa communities
- Sustainable and smart homes
- Integrated township developments
Industry observers believe Hyderabad still has significant growth potential in the ultra-luxury category due to relatively affordable land prices compared to other metros.
Hyderabad Emerging as National Luxury Housing Destination
The report suggests Hyderabad is no longer just competing with southern cities, but is increasingly positioning itself alongside India’s top luxury real estate markets.
Experts believe upcoming infrastructure projects such as:
- Metro Rail expansion
- Regional Ring Road (RRR)
- Airport connectivity corridors
- ORR growth zones
- Neopolis development
- Musi Riverfront projects
could further accelerate premium real estate demand in the coming years.
With rising incomes, increasing global investments, and expanding urban infrastructure, Hyderabad’s luxury housing market appears set for another strong growth phase in the years ahead.
