Wealth wave powers Hyd’s ultra-luxury housing surge

Hyderabad: Hyderabad’s ultra-luxury housing market has moved well beyond its niche status, with homes priced above Rs 10 crore becoming an increasingly mainstream choice for wealthy entrepreneurs, CXOs, startup founders and NRIs as rapid wealth creation transforms the city’s residential landscape.

According to CREDAI Hyderabad President N. Jaideep Reddy, the city’s Rs 10-crore-plus residential market has expanded nearly 3.5 times in just four years, making Hyderabad one of India’s fastest-growing luxury housing destinations.

“The ultra-luxury housing market in Hyderabad is now an established market that has gone beyond the niche stage and is now one of the fastest-growing luxury housing markets in India. Although it is not as big as Mumbai or Delhi NCR, Hyderabad has experienced fast wealth creation, which has created strong demand for houses worth Rs 10 crore and above,” Jaideep Reddy said.

Industry estimates indicate that Hyderabad recorded about 625 transactions of homes priced above Rs 10 crore during FY26, with a combined value of Rs 8,562 crore, compared with an estimated market size of about Rs 2,447 crore four years ago. “It is a growth of almost 3.5 times the market size from the past four years,” he said.

Hyderabad witnessed 700-900 ultra-luxury home transactions over the last 12-24 months, he informed. Apartments priced above Rs 15 crore are no longer rare in the city. “Some apartments have already been sold for more than Rs 15 crore, while some others have sold for more than Rs 20 crore. Some branded and top-tier projects are also quoted at over Rs 25 crore.” According to him, homes in the Rs 15-20 crore range have become “quite commonplace”, particularly apartments offering 6,000-10,000 sq ft of living space. The profile of buyers has also broadened significantly.

Hyderabad-based entrepreneurs and business families account for 35-40% of purchases, followed by senior executives from the IT, pharma and Global Capability Centre (GCC) ecosystem at 20-25%. NRIs contribute another 20-25%, while startup founders and technology entrepreneurs account for 15-20%. Investors represent only 5-10% of demand.

“The buyer profile has become significantly more diversified than it was five years ago, reflecting the broadening appeal of Hyderabad’s ultra-luxury housing market,” Jaideep Reddy said.

Unlike several other cities where luxury purchases are often investment-driven, Hyderabad continues to be dominated by end-users. “About 70-80% of the purchases are meant for occupation, and the remaining 20-30% is meant for investments. Buyers today are more interested in purchasing homes that suit their way of life than considering real estate merely as an avenue for appreciating capital.” He attributed the sustained demand to multiple structural factors. “Wealth generation has been quick in sectors like information technology, pharmaceuticals, healthcare and the growing GCC cluster, resulting in high purchasing power. Liquidity with entrepreneurs and investments by NRIs have further added to the demand.”

Another advantage, he said, is Hyderabad’s value proposition. “One thing which differentiates Hyderabad from cities like Mumbai and Bengaluru is its unique value proposition, offering much bigger properties for similar amount of money.” The city’s luxury home buyer has also evolved.

“Initially, the buyer group included mostly well-settled industrialists, traditional business people and real estate builders. Today it includes startup owners, tech entrepreneurs, healthcare promoters, second-generation entrepreneurs, CXOs with international payrolls and professionals from abroad,” he noted. Geographically, western Hyderabad continues to dominate premium housing. Kokapet, Financial District, Neopolis, Gachibowli and Raidurg have become the top choices for luxury residences because of their closeness to commercial centres and state-of-the-art infrastructure. However, he said demand is now spreading across the city as connectivity improves.

“With the overall growth of the city there is a surge in demand from the East, West and South parts of the city. The existing ORR with the network of radial roads has helped improve connectivity and is resulting in demand across the city,” he said.

Today’s luxury buyers, he said, are looking beyond large homes. “The meaning of luxury today goes way beyond just the size of the apartment. Buyers are focused on privacy, low-density housing, scenic views, concierge services, resort-style clubhouses, health-oriented facilities, smart-home technology, international-quality design and branding.”

Jaideep Reddy also dismissed concerns about oversupply in Hyderabad’s residential market, saying inventory numbers are often misunderstood because projects receive approvals for their full size while construction is executed in phases. “The perception of excess inventory arises primarily from the way projects are approved and reported. The entire approved project is counted as inventory from the beginning, but apartments are introduced to the market in phases. Therefore, the reported inventory figures should be viewed in the context of Hyderabad’s phased development model, which continues to keep supply aligned with market demand,” he informed.