Hyderabad home sales fell 13% to 26,068 units in H1 FY26, the city's weakest half-year since 2022, even as prices and unsold housing stock both climbed.
Hyderabad home sales dropped 13% year-on-year to 26,068 units in the first half of FY26. That's the city's weakest half-year performance since 2022, according to the CREDAI Hyderabad-CRE Matrix Housing Report. A few numbers frame the scale of the slowdown clearly:
The pattern here is unusual on its face. Fewer homes sold, but at meaningfully higher prices, on more total square footage than any other Indian city moved in the same period.
A drop in unit sales would normally put downward pressure on prices. That hasn't happened here. CREDAI Hyderabad president-elect B Jaganath Rao attributed part of the resilience to genuine market fundamentals, pointing out that Hyderabad has continued to outperform several other major cities even with sales volumes down.
He also flagged a separate, less tangible factor: negative sentiment on social media, including recurring claims that prices had become unsustainable, which he said has added to buyer hesitation without actually being reflected in transaction data.
Industry voices pointed to two distinct headwinds behind the sales dip in Hyderabad's residential real estate market:
The sharper concern in this data isn't the sales dip on its own. It's what's happening on the supply side at the same time. Developers launched a record 49,656 homes in H1 FY26, a 37% jump over H1 FY25, even as sales fell from more than 36,000 units in H1 FY23 to 26,068 units now. That combination, rising launches against falling sales, is precisely the setup that builds unsold inventory.
Hyderabad's unsold housing stock rose 21% year-on-year to 1,42,722 units, pushing the inventory overhang to roughly 29 months at the current sales pace. That headline number needs context, though. Only about 20% of that stock, close to 30,000 homes, is ready to move in or scheduled for completion within 2026. The rest is spread further out:
In other words, most of what's counted as "unsold" isn't sitting finished and empty. It's under construction, with delivery years away, which changes how alarming the 29-month overhang figure actually is in practice.
For a prospective buyer, this data cuts in a specific direction. Prices haven't corrected despite softer sales, so there's little evidence of a buyer's market forming on price alone. But the widening gap between launches and sales, combined with a large pipeline of homes still years from completion, suggests negotiating room may exist on ready-to-move or near-completion inventory specifically, where developers have real pressure to sell rather than sit on finished stock. Developers themselves are betting on a rebound, with several citing early signs of renewed demand as the festive season begins.
