Hyderabad home sales fell 13% to 26,068 units in the first half of FY26, marking the city’s weakest half-year performance since 2022, even as average home prices and unsold inventory continued to rise, according to the CREDAI Hyderabad-CRE Matrix report.
The average ticket size of homes sold increased 10% year-on-year to Rs 2.03 crore in H1 FY26, from Rs 1.85 crore in the corresponding period of FY25. Total residential sales were valued at Rs 52,913 crore, making Hyderabad the third-largest residential market in India by sales value, behind Bengaluru and Mumbai.
The decline in unit sales has not translated into a price correction. Hyderabad recorded around 60 million sq ft of super built-up area sold during the first half of FY26, with the average size of homes sold at approximately 2,300 sq ft, the report said.
Industry representatives attributed the slowdown partly to weaker investment flows from non-resident Indians, particularly those based in the United States. They said uncertainty over jobs and tighter visa norms had affected a segment that has traditionally contributed to demand for premium housing in Hyderabad.
“At the same time, local homebuyers are also becoming more cautious, particularly when it comes to properties priced above Rs 2 crore,” Cyberabad Builders Association president U Uday Shekar said. He added that concerns over job security and future income were prompting some salaried professionals to postpone purchases and remain on rent.
Developers also cited uncertainty surrounding the latest Gulf war, which they said affected buyer sentiment and construction activity over the past six months. CREDAI Hyderabad president-elect B Jaganath Rao said negative sentiment on social media, including repeated claims that property prices had become unsustainable, had added to buyer uncertainty. He said Hyderabad continued to perform relatively better than several other major cities despite the decline in sales.
The sharper concern for the market is the widening gap between new supply and actual purchases. Developers launched a record 49,656 homes in H1 FY26, a 37% increase over H1 FY25. Sales, meanwhile, have fallen from more than 36,000 units in H1 FY23 to 26,068 units in H1 FY26.
The city’s unsold housing stock rose 21% year-on-year to 1,42,722 units, pushing the inventory overhang to around 29 months. However, only about 20% of this stock, or nearly 30,000 homes, is ready to move in or scheduled for completion in 2026.
The remaining inventory is spread across longer delivery timelines. Around 59,400 unsold units are scheduled for completion in 2027-28, while another 53,800 units are expected to be completed in 2029 or later. Developers expect buyer activity to improve in the second half of the year, with the onset of the festive period already showing signs of renewed demand.
