Hyderabad Beats Bengaluru in Luxury Home Sales

Hyderabad is quickly becoming South India’s top destination for ultra-luxury homes, leaving Bengaluru behind in the high-end property market. According to a recent luxury housing report by India Sotheby’s International Realty and CRE Matrix, Hyderabad recorded ₹8,562 crore worth of home sales in the ₹10 crore-plus category during FY26.

The numbers were far ahead of Bengaluru, which registered luxury housing sales worth ₹1,957 crore during the same period. The report highlights that Hyderabad is attracting wealthy buyers because properties there offer larger living spaces at comparatively better prices.

One of the biggest advantages for Hyderabad buyers is the amount of space they get for the same budget. A ₹10 crore luxury home in Hyderabad offers nearly 6,210 square feet of space on average. In comparison, buyers in Bengaluru get around 3,930 square feet, while luxury homes in Chennai provide about 4,290 square feet.

The report also revealed that more than half of Hyderabad’s ultra-luxury apartment sales involved homes larger than 8,000 square feet. Villas and row houses made up nearly 40% of the city’s total luxury property transaction value in FY26.

Experts believe Hyderabad’s rapid infrastructure growth has played a major role in boosting the market. Areas such as the Financial District, Kokapet, Gachibowli, and Nanakramguda have seen major development due to the expansion of IT companies and global business centres. Improved road networks, planned metro expansion, and growing commercial hubs are also attracting high-net-worth buyers.

Real estate developers say many entrepreneurs, startup founders, pharma executives, and NRIs now prefer Hyderabad because they see stronger future growth potential and better value for money compared to Bengaluru.

Meanwhile, Bengaluru continues to remain one of India’s strongest property markets, especially due to its IT industry and office space demand. The city also recorded a strong 52% rise in luxury home unit sales year-on-year. However, land shortages, traffic congestion, and infrastructure challenges in some key locations have pushed prices higher, often without offering larger homes.

Another major reason for Hyderabad’s success is the availability of large gated communities and premium villa projects. Since the city still has room for planned expansion, developers can build spacious luxury projects with modern amenities. In Bengaluru, dense urban development makes such large-scale luxury communities harder to create.

Ashwin Chadha, CEO of India Sotheby’s International Realty, said Hyderabad has built a complete luxury ecosystem in areas like Kokapet, while Bengaluru is growing rapidly with new premium corridors emerging across the city.

At the same time, some property experts advise buyers not to compare the two cities too broadly. They point out that Bengaluru has lower unsold inventory and steady demand, which could support future price growth. Hyderabad, on the other hand, has a larger supply of luxury homes, giving buyers more options and better bargaining power.

Experts suggest that investors should focus on specific locations, developer reputation, infrastructure quality, and long-term demand instead of making decisions based only on city-wide comparisons.

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