Hyderabad housing market stays resilient in H1 2026 as home sales rise despite fewer project launches

Hyderabad’s residential real estate market maintained its growth momentum during the first half of 2026, demonstrating resilience even as developers introduced fewer new housing projects. According to Knight Frank India’s latest report, the city recorded sales of 19,249 residential units between January and June 2026, reflecting a modest one percent increase compared to the same period last year.

While demand remained steady, developers adopted a cautious approach towards new launches. Around 20,466 new residential units entered the market during the six-month period, marking a two percent decline year on year. Industry experts believe developers are balancing supply with demand to maintain healthy inventory levels and avoid oversupply in key micro-markets.

The report highlighted that Hyderabad’s residential market continues to remain fundamentally strong. The city’s average quarters-to-sell ratio stood at 5.9 quarters, indicating that available housing inventory is being absorbed at a comfortable pace. Premium housing also continued to attract buyers, particularly homes priced between ₹1 crore and ₹2 crore, which recorded the fastest sales among higher-value residential categories.

Property prices also continued their upward trajectory. Average residential prices increased seven percent year on year to ₹8,258 per sq ft, supported by sustained demand and limited availability of quality residential developments in prime locations. Banjara Hills emerged as one of the strongest-performing markets, registering notable price appreciation as luxury housing demand remained healthy.

Hyderabad’s commercial real estate market delivered an even stronger performance during the first half of the year. Office leasing reached a record 7.5 million sq ft, representing a 29 percent increase over the previous year. The city continued to attract Global Capability Centres, which accounted for nearly 45 percent of total office leasing activity. Fresh office completions and declining vacancy levels further reinforced Hyderabad’s position as one of India’s fastest-growing business destinations.

The combination of stable housing demand, rising property values and robust commercial leasing reflects Hyderabad’s balanced real estate ecosystem. With continued investments in infrastructure, expanding employment opportunities and sustained corporate interest, the city is expected to remain one of India’s most attractive real estate markets for both homebuyers and institutional investors in the coming years.