Hyderabad Housing Market Holds Third Costliest Position
Hyderabad: Hyderabad has emerged as India’s third least affordable residential housing market among the country’s eight largest cities, reflecting the growing financial commitment required from homebuyers despite stable borrowing costs. The latest housing affordability assessment indicates that while the city’s property market remains resilient, rising home values continue to test affordability for middle-income households and first-time buyers.
According to the latest affordability assessment released by Knight Frank India for the first half of 2026, households in Hyderabad spend around 41% of their monthly income on housing loan repayments. Although this remains below the 50% threshold generally considered acceptable for mortgage lending, it positions Hyderabad behind only the Mumbai Metropolitan Region and the National Capital Region (NCR) in terms of housing costs relative to income. The Hyderabad housing affordability index has remained unchanged compared with the end of 2025, suggesting that stable interest rates have offset some of the pressure created by rising residential property prices. Industry analysts say affordability has broadly stabilised across several metropolitan markets, supported by healthy employment levels and sustained demand for home ownership, even as property values continue to appreciate. Nationally, Ahmedabad remains the most affordable residential market, followed by Kolkata and Pune, while Mumbai and the NCR continue to exceed the affordability benchmark typically considered comfortable for home financing. Bengaluru experienced a modest deterioration in affordability during the period, whereas most other cities witnessed relatively stable conditions.
Urban economists note that Hyderabad’s position reflects both the strengths and challenges of a rapidly expanding metropolitan economy. The city has attracted sustained investment across information technology, life sciences and Global Capability Centres, fuelling demand for quality residential developments. While this growth has strengthened the real estate sector and supported infrastructure investment, it has also contributed to upward pressure on housing prices in several emerging growth corridors. The report also points to the role of monetary policy in shaping affordability. Successive policy rate reductions by the Reserve Bank of India have helped moderate borrowing costs, but rising capital values have limited the extent to which home ownership has become more accessible. Experts suggest that long-term affordability will increasingly depend on balanced housing supply, income growth and continued investment in transport infrastructure that opens up new residential locations.
As Hyderabad continues to expand into new urban corridors, maintaining Hyderabad housing affordability is expected to become an important policy priority. A combination of diversified housing supply, integrated infrastructure planning and improved public transport connectivity could help ensure that economic growth remains inclusive while supporting sustainable real estate development across the metropolitan region.
