Hyderabad, the Next Destination for Luxury in India

Chanel, Michael Kors, Hugo Boss and Brooks Brothers have set up outlets at the international airport, a sign that brands are beginning to cater to a wealthy clientele who, until now, had mainly made their purchases whilst travelling to Mumbai, Dubai, London or Paris.

Hyderabad is home to major global technology firms, including Microsoft, Amazon and Google, as well as a powerful pharmaceutical sector. According to the Telangana government, the state accounts for nearly 40 per cent of India’s pharmaceutical production, a third of global vaccine production and more than 2,000 life sciences companies. The sector is reported to have attracted more than 800 billion rupees in cumulative investment, equivalent to around 8 billion euros. The commercial infrastructure is now beginning to catch up. Hyderabad’s appeal is no longer limited to technology and the life sciences. Major international beauty groups are also strengthening their presence there. L’Oréal has announced an investment of 326 million euros to create a hub dedicated to beauty and technology, designed to support its research, innovation and digitalisation activities in India.

More than twenty shopping centres are now planned for the metropolitan area. In Hyderabad, the LuLu Group has allocated 3 billion rupees (27 million euros) to the refurbishment and opening of its first shopping centre in 2023, as part of a wider commitment of 35 billion rupees (318 million euros) in the state of Telangana.

For brands, the main obstacle remains the lack of locations genuinely suited to the luxury sector. India still has few shopping centres capable of fully meeting the sector’s international standards. This factor is one of the main barriers to the expansion of luxury brands, despite the exponential growth of the affluent customer base. For the time being, investment does not yet extend to individual boutiques.

If Hyderabad were to further develop its high-end offering, the benefits could quickly become apparent, particularly for the property sector. By 2025, properties priced at over 30 million rupees (around 300,000 euros) already accounted for more than a third of the city’s property sales. According to the latest reports on wealth in India, the Indian metropolis is now home to the country’s third-largest population of ultra-high-net-worth individuals, behind Mumbai and Delhi. However, Hyderabad does not replicate the model of these other cities. Its luxury is less ostentatious and is primarily linked to a first generation of fortunes built on innovation, biotechnology and digital services. This clientele, which is younger and more international, often favours discretion, bespoke products and exclusive experiences over outward displays of wealth.