Research Report

Hyderabad is the second-largest residential real estate market among the top seven cities, accounting for around 18% of the area sold in FY2026. Area sold rose moderately by 4.1% to 118 msf in FY2026, supported by a 26% spike in luxury segment sales after a steep correction in FY2025. In Q1 FY2027, area sold grew by 17.3%, driven by robust and lumpy launches. ICRA estimates the full-year growth at 11-14% in FY2027.

• Luxury housing has dominated launches since FY2024, driven by rising demand for premium homes.
  
• Hyderabad's unsold inventory reached a multi-year high of 296 msf as of June 2026, accounting for nearly 30% of top seven cities’ total unsold inventory.
  

Exhibit: Trend in annual sales for top seven cities and Hyderabad (in msf)

Source: ICRA Research and Propequity; data excluding stalled projects