Hyderabad has officially pulled ahead of Bengaluru and Chennai to become South India's largest ultra-luxury residential market, and the numbers make a compelling case. According to the Southern India High-End Luxury Housing Report FY26, released jointly by India Sotheby's International Realty and CRE Matrix, Hyderabad recorded ₹8,562 crore in luxury housing sales across 625 units in FY26, making it the largest market in both value and volume. Bengaluru, long considered the benchmark for premium housing in the south, trailed with sales worth Rs 2,087 crore through 125 transactions, while Chennai recorded sales worth of Rs 727 crore through the sale of 58 units.
The scale of this shift becomes clearer when viewed over time. As per the report, Hyderabad's luxury housing market has expanded by nearly 3.5 times over the last four years, with transaction values rising from Rs 2,447 crore in FY'22 to Rs 8,562 crore in FY26. This growth challenges the long-held assumption that Bengaluru automatically commands the region's premium real estate narrative.
What's really driving buyer preference, however, isn't just price appreciation—it's space. Buyers spending Rs 10 crore in Hyderabad receive an average size of 6,210 square feet, which is nearly 58 per cent more than what is available in Bengaluru at 3,930 square feet, for the same budget. That difference in floor plate size has become a decisive factor for HNI buyers who are increasingly prioritising larger, low-density living formats over the compact high-rises common in denser metros.
The report also points to specific micro-markets fuelling this momentum. The report cited that micro-markets such as Kokapet, Nanakramguda, Manchirevula, Khajaguda, and Kukatpally have emerged as a main attraction of major luxury housing hubs, with Kokapet alone generating Rs 1,298 crore in luxury sales. As Abhishek Kiran Gupta, Co-founder and CEO of CRE Matrix, put it, "Hyderabad's leadership is backed by structural fundamentals—space-value and sustained demand for large floor plates."
It's against this backdrop that Brigade Group has launched Brigade Manor, a residential project in the Moti Nagar area of west Hyderabad, spread across 4.79 acres, positioned as a low-density alternative to the high-rise apartment complexes that have come to dominate the city's residential market. The development comprises 190 units configured as three- and four-bedroom residences, with units built on an "island unit" configuration meaning no shared walls between adjacent apartments—a direct response to the same space-value proposition driving Hyderabad's luxury sales surge citywide.
Interestingly, Bengaluru isn't standing still either. Bengaluru is the fastest-growing luxury market, with a 52% YoY increase in unit sales in FY26, even as it grapples with land constraints. The takeaway for buyers is that Hyderabad and Bengaluru are now competing on fundamentally different value propositions—scale and space versus pace of growth—giving homebuyers more nuanced choices depending on what they prioritise: sheer square footage and land share, or exposure to a rapidly appreciating new-age corridor.
For Hyderabad homebuyers specifically, this data validates a broader shift already underway: developers are moving away from cramming maximum units per acre and instead building fewer, larger, better-designed homes—exactly the positioning Brigade Manor has adopted in Moti Nagar, a location that sits close to established neighbourhoods as well as the HITEC City and Financial District employment corridors.
