Hyderabad: Hyderabad’s residential property market has recorded its weakest half-year performance in four and a half years as home sales declined 13 per cent during the first half of the fiscal year 2026.
According to the CREDAI Hyderabad-CRE Matrix report, developers sold 26,068 housing units in H1 2026. It is the lowest half-year sales figure since 2022.
Despite the decline in sales, property prices have not fallen. The average value of homes sold rose by 10 per cent to Rs 2.03 crore in H1 2026. In 2025, during the same period it was Rs 1.85 crore.
The total value of residential properties sold in Hyderabad stood at Rs 52,913 crore.
Premium housing demand weakens
The report highlighted a significant difference between the number of homes sold and the total residential space purchased. Hyderabad recorded sales of nearly 60 million sq ft of super built-up area during the first half of 2026. The average size of a home sold was around 2,300 sq ft.
Real estate developers said demand from non-resident Indians, especially those living in the United States, has weakened. The reason behind the weakened demand is the concerns over job security and stricter visa rules.
Local buyers are also becoming more cautious.
Gulf war uncertainty affects market sentiment
Developers also linked the slowdown to uncertainty surrounding the latest Gulf war. They said the situation affected buyer confidence and construction activity during the past six months.
Developers expect housing demand to improve during the second half of the year.
A major concern for the residential market is the rapid addition of new housing inventory. Developers launched a record 49,656 homes in H1 2026. It is 37 per cent more that in the same period in 2025.
However, home sales have declined steadily from more than 36,000 units in H1 2023 to 26,068 units in H1 2026.
Hyderabad has over 1.4 lakh unsold homes
The city’s unsold housing inventory increased 21 per cent year-on-year to 1,42,722 units during the first half of 2026.
However, only about 20 per cent of the unsold homes are ready for possession or scheduled for completion in 2026.
A large portion of the remaining inventory is still under construction.
