Hyderabad Has 1.43 Lakh Unsold Homes as H1 2026 Sales Slide

Greater Hyderabad’s residential real estate market recorded a 13% year-on-year decline in the first half of 2026, with sales dropping to 26,068 units and marking its weakest half-year performance since 2022. According to the CREDAI Hyderabad–CRE Matrix report released this week, a surge in new project launches has pushed the city’s unsold housing stock up by 21%, leaving developers with an inventory overhang of roughly 29 months.

Record 49,656 New Launches Widen the Supply Gap

The gap between supply and demand has widened significantly over the past year. Sales have steadily declined from more than 36,000 units in H1 2023 to just 26,068 units in H1 2026. Despite this cooling demand, developers launched a record 49,656 homes during the period, up 37% from H1 2025.

This aggressive supply addition is nearly double the number of homes sold, resulting in the city’s unsold housing stock reaching 1,42,722 units. Prospective buyers navigating this expanding market should independently verify the Telangana RERA Approved Projects list before committing to newly launched developments.

Housing inventory overhang—a metric indicating how long the existing unsold stock would take to clear at the prevailing sales pace—now stands at about 29 months, signaling a substantial supply-demand imbalance.

What This Means for Premium Buyers and Investors

While transaction volumes have fallen, the data indicates a highly bifurcated market where pricing has not collapsed. Instead, the average ticket size increased 10% year-on-year, jumping from Rs 1.85 crore in H1 2025 to Rs 2.03 crore in H1 2026.

Prospective buyers, particularly salaried professionals looking at properties above Rs 2 crore, may face more cautious lending environments as job and income uncertainties weigh on immediate demand. However, buyers may also gain significant negotiating leverage, especially in developments with substantial unsold stock.

For owners and investors in the premium housing segment, this inventory buildup may translate to longer selling periods as absorption slows.

Greater Hyderabad Retains Third Spot Nationally by Sales Value

Despite the volume slowdown specific to Greater Hyderabad, the city continues to generate massive real estate wealth. Residential sales in H1 2026 were valued at Rs 52,913 crore.

This high total sales value firmly positions Hyderabad as India’s third-largest residential market by value, trailing only Bengaluru and Mumbai. The continued high sales value, despite fewer homes being sold, underscores how average property sizes and premium pricing are currently holding the market up.

“Negative sentiment on social media and claims that property prices had become unsustainable made prospective buyers more uncertain, while Hyderabad continued to perform relatively better than several other major cities.”

How Job Concerns and Global Events Impacted Demand

Industry leaders cite a combination of local and global factors for the recent buyer hesitation. U Uday Shekar, president of the Cyberabad Builders Association, noted that local buyers have become increasingly cautious, particularly regarding properties priced above Rs 2 crore. Job security and income concerns have prompted some salaried professionals to remain renters and postpone their purchases.

Furthermore, developers attributed part of the market slowdown to the uncertainty surrounding the latest Gulf war, which affected buyer sentiment and construction momentum over the last six months. Non-Resident Indians (NRIs), particularly those based in the United States, have also tightened their investments due to concerns over jobs and stricter visa norms, directly impacting the premium housing segment’s cash flow.

Festive Season Hopes and Future Completion Schedules

Looking ahead, developers are relying on the festive season in the second half of 2026 to revive buyer activity and clear out inventory. Market momentum in the coming months will be a key test of whether demand can improve without builders resorting to heavy discounting.

Importantly, not all 1.43 lakh unsold units are immediate supply. Only about 30,000 unsold homes are ready to move in or scheduled for completion by the end of 2026. An estimated 59,400 units are slated for completion in 2027-28, and another 53,800 units are expected in 2029 or later. Buyers eyeing these future deliveries are advised to monitor the Telangana RERA Registration Status of their chosen builders to track completion progress.