HYDERABAD: Hyderabad’s residential property market is showing greater resilience than several other major urban centres, with home sales rising 15% in the April-June quarter even as combined sales across India’s eight leading housing markets declined. The divergence points to continued buyer confidence in Hyderabad, supported by employment growth, business activity and sustained demand for urban housing.
According to PropTiger’s latest Real Insight report, Hyderabad recorded sales of 13,196 homes during the quarter, compared with 11,513 units in the corresponding period a year earlier. The increase contrasts with the 6% decline recorded collectively across the eight major markets, where sales fell from 97,674 units to 91,729 units. The performance places Hyderabad alongside Chennai as one of the few major markets to record year-on-year growth during the quarter. Mumbai, Bengaluru and Delhi-NCR were among the markets that experienced weaker sales, reflecting a more cautious approach from buyers in several large urban economies. The broader slowdown has emerged against an uncertain economic backdrop. Concerns around geopolitical tensions in West Asia and the potential effect of artificial intelligence on employment are encouraging some buyers to delay large financial commitments. Residential property, with its high ticket size and long-term financing requirements, can be particularly sensitive to changes in household confidence.
Hyderabad’s performance suggests that these concerns have not translated into a broad retreat from home ownership in the city. Its expanding technology, financial services and business ecosystem continues to support employment-led housing demand, particularly in established and emerging employment corridors. However, the increase in transactions does not necessarily mean the market is becoming more affordable. PropTiger’s assessment indicates that average residential prices across the leading markets remained above ₹10,000 per sq ft for a second consecutive quarter. Higher prices can improve developer revenues but may also increase the entry barrier for first-time buyers. The changing buyer profile is another important factor. Market observers indicate that purchasers are becoming more selective and increasingly assessing construction quality, location, amenities and long-term value rather than simply responding to promotional pricing.
For Hyderabad, sustained housing demand could support construction activity, employment and investment across the wider property ecosystem. But rapid residential expansion also creates pressure on transport, water supply, drainage, public spaces and other civic infrastructure. The city’s housing momentum therefore needs to be viewed alongside its broader urban capacity. If residential growth continues, infrastructure provision will need to keep pace to prevent rising congestion and service gaps from undermining the attractiveness that is currently supporting demand. With the festive buying season approaching, developers may see another period of stronger enquiries and transactions. Whether Hyderabad can maintain its lead over other metropolitan markets will depend on the durability of employment growth, household confidence, affordability and the city’s ability to support continued residential expansion.
