Hyderabad Has 29.6 Crore Sq Ft of Unsold Housing Space, ICRA Estimates

 Hyderabad had approximately 29.6 crore square feet of unsold residential space, with the existing inventory potentially taking around 2.4 years to clear at prevailing sales levels, according to an ICRA assessment reported by Deccan Chronicle on October 19.

The report said housing launches had exceeded sales every year since financial year 2024. The estimated inventory clearance period increased from 1.6 years in March 2024 to 2.4 years in the latest assessment.

CREDAI Hyderabad Challenges the Interpretation

CREDAI Hyderabad has argued that the headline inventory estimate needs to be understood in the context of Telangana’s development and approval practices.

According to the association’s president-elect, B. Jagannath Rao, developers may obtain master-plan sanctions for projects intended to be executed over five to six years. He also said that a portion of permissible development space can remain mortgaged to municipal bodies until the final occupancy certificate is issued.

The association’s position is that treating a multi-year project pipeline and encumbered stock as immediately available unsold homes may overstate the near-term supply facing the market.

Why Inventory Measurement Matters

Unsold inventory is an important indicator for assessing the balance between new supply and buyer demand. However, estimates can differ depending on whether they include homes under construction, projects planned for later completion, or units that are not yet ready for occupation.

The ICRA estimate and CREDAI’s response therefore represent different interpretations of the market’s supply position rather than a settled conclusion that all reported space is ready for immediate sale.

Market Perspective

Homebuyers should assess inventory at the project and locality level. Key questions include how many units are completed, how many remain under construction, whether approvals are in place, and how quickly comparable homes are being sold.

For developers, the report reinforces the importance of matching launch schedules with actual demand. The most useful indicator is not inventory alone, but the relationship between available homes, completion timelines and the pace of sales.