Hyderabad housing boom gathers pace

■ Housing launches to surge 30–33% in Hyderabad in FY2027, the highest growth among India’s top seven cities

■ Unsold inventory hits 296 msf, accounting for nearly 30% of the combined inventory across the top seven cities, with luxury housing contributing 45–50% of the build-up

■ Western corridor dominates the market, with Northwest and Southwest Hyderabad accounting for 85–90% of housing sales and launches

Metro India News | Hyderabad : Hyderabad is expected to record the highest growth in residential launches among India’s top seven cities in financial year 2027 (FY2027), with a projected increase of 30–33%, according to ICRA. New launches rose 10.5% to 133 million square feet (msf) in FY2026, recovering from a 33.6% decline in FY2025. Launch activity surged 76.7% year-on-year in Q1 FY2027, largely driven by projects in the Southwest region and spillover supply from the previous fiscal.

Housing sales also remained firm, with area sold rising 4.1% to 118 msf in FY2026 and growing 17.3% in Q1 FY2027. ICRA expects sales to increase 11–14% in FY2027. However, rising supply has pushed Hyderabad’s unsold inventory to a multi-year high of 296 msf as of June 2026, accounting for nearly 30% of the combined inventory across the top seven cities.

The inventory overhang has increased, with the years-to-sell (YTS) ratio rising to 2.4 years from 1.6 years in March 2024. Luxury housing accounts for 45–50% of the inventory build-up, although increased mid-segment launches in Q1 FY2027 indicate a potentially more balanced supply mix ahead. ICRA expects inventory overhang to remain elevated, with YTS projected at 2.2–2.4 years by March 2027.

The western corridor continues to dominate Hyderabad’s housing market, with the Northwest and Southwest regions accounting for 85–90% of sales and launches. Key markets include Kokapet, Neopolis, Tellapur and Khanapur.