Hyderabad: Greater Hyderabad’s housing market has hit a 4.5-year low, with home sales dropping 13% to 26,068 units in H1 (first half of the fiscal) 2026, the weakest half-year performance since 2022, CREDAI Hyderabad-CRE Matrix report shows.Yet, the market has not seen a corresponding correction in prices. Instead, the average ticket size of homes sold increased by 10% to Rs 2.03 crore in H1 2026, from Rs 1.85 crore in H1 2025. Total housing sales were valued at Rs 52,913 crore, making Hyderabad the third-largest residential market in India by sales value, behind Bengaluru and Mumbai.One of the most striking findings is the gap between the number of homes sold and the area absorbed. Hyderabad sold around 60 million sq ft of super built-up area in H1 2026. The average size of homes sold was around 2,300 sq ft, the report added.Real estate industry players say that the flow of investments into the residential market from NRIs, particularly those based in the US, has weakened amid growing uncertainty over their jobs and tightened visa norms. This has affected a segment that has traditionally been an important source of demand for premium housing in Hyderabad, they said.“At the same time, local homebuyers are also becoming more cautious, particularly when it comes to properties priced above Rs 2 crore. The uncertainty over job security and concerns about future income are prompting salaried professionals to postpone home purchases. People who are unsure about their job prospects are increasingly preferring to remain on rent,” Cyberabad Builders Association president U Uday Shekar said.The developers also attributed the slowdown partly to the uncertainty surrounding the latest Gulf war, which affected buyer sentiment as well as construction activity over the past six months.“The negative sentiment on social media, with repeated claims that property prices had reached unsustainable levels, was another factor that made prospective buyers more uncertain. However, Hyderabad’s market continues to perform relatively better than several other major cities despite the decline in sales,” CREDAI Hyderabad president-elect B Jaganath Rao said.Developers anticipate the market to regain momentum in the second half of the year, with the onset of the auspicious festive period already resulting in improved buyer activity.Launches nearly double sales:The bigger concern, however, is the pace at which developers were adding fresh inventory. Developers launched a record 49,656 homes in H1 2026, a 37% increase over H1 2025. This widening gap between launches and sales is particularly significant because sales themselves have weakened. Home sales fell from over 36,000 in H1 2023 to 26,068 units in H1 2026.Over 1.4 lakh unsold homes:On the other hand, the residential market is sitting on a massive 1.43 lakh unsold homes. The city’s unsold housing stock rose 21% year-on-year to 1,42,722 units in the first half of 2026, pushing the inventory overhang to around 29 months. However, only about 20% of the unsold stock, nearly 30,000 units are either ready to move in or due for completion in 2026.The bulk of the inventory is still some distance away from hitting the market. Around 59,400 unsold units are scheduled for completion in 2027-28, while another 53,800 units are expected to be completed in 2029 or later.
