Hyderabad Real Estate: Unsold Housing Inventory Reaches 29.6 Crore Sq Ft, Says ICRA

Hyderabad: Hyderabad's residential real estate market is seeing a widening gap between new housing supply and sales, with 29.6 crore square feet of residential property remaining unsold, according to a report by rating agency ICRA published in October 2026.

The report estimates that, at the prevailing pace of sales, the existing inventory could take around 2.4 years to be absorbed. It also notes that residential launches have exceeded sales every year since financial year 2024.

New Project Launches Outpace Sales

Hyderabad continues to attract developers, particularly in the western and southwestern parts of the city. According to the report, new launches rose 76.7% year-on-year, with a substantial share concentrated in the southwest.

The city accounted for around 18% of the residential area sold across India's seven major housing markets in FY2026. The area sold in Hyderabad rose 4.1% to 118 million square feet during the financial year.

ICRA also reported that sales area increased 17.3% in the first quarter of FY2027, although activity was influenced by large project launches.

Premium Housing Remains Important

The report identified areas including Kokapet, Neopolis, Tellapur and Khanapur as important residential markets. Proximity to employment centres, connectivity and social infrastructure have supported demand in these locations.

However, market conditions are not uniform across all price segments or neighbourhoods. Buyers should evaluate individual projects, prices, completion timelines and available inventory rather than relying solely on citywide growth figures.

What This Means for Homebuyers

A higher inventory figure does not automatically mean every property is overpriced or that prices will fall across Hyderabad. It does, however, underline the importance of comparing multiple projects and checking the progress of under-construction developments.

Homebuyers should verify Telangana RERA registration, sanctioned plans, possession commitments and the builder's track record before paying a booking amount.

The latest figures indicate that Hyderabad remains a major residential market, but the pace at which new homes enter the market will be an important factor to watch in the coming quarters.