Housing sales maintain momentum; marginally up q-o-q

• Hyderabad residential demand witnessed modest growth during Q1 2026, driven by robust hiring trends and high earning professionals who are seeking quality, amenity-rich, gated communities.
• Western Suburbs dominated apartment sales recording over 7,160 units sold in Q1, followed by northern suburbs and eastern suburbs.

New launches strongly up by 13.8% q-o-q and 5.8% y-o-y in Q1 2026, reaching 10,665 units

• Hyderabad’s new residential supply rose to 10,665 units in Q1 2026, reflecting continued addition to the existing inventory with developers focusing on the higher priced segments.
• The western suburbs accounted for 97% of the unit launches in Q1 2026. Notable launches here included Prestige Golden Grove, My Home Udayan, and Casagrand Mandarin, while Brigade Manor launched in Prime Secondary submarket.

Capital values and rentals both up q-o-q, albeit at a slower pace

• Capital values were up by 1.9% q-o-q driven by the developer focus on the premium and high-end segments, resulting in average prices ticking over in clusters like Hitec City, Gachibowli and the Financial District.
• Rents were up by 1.4% q-o-q, primarily driven by the high demand from IT professionals in premium Western Suburbs clusters including Hitech City, Kondapur, and Gachibowli.

Outlook: Residential market to attract more overseas investors; inventory overhang to persist

• The Hyderabad residential market is likely to see demand from NRIs and high-placed tech employees looking at premium residential communities for both investment as well as end-use with focus towards the Western Suburbs and the axis leading to the Airport.
• While price growth is expected to continue it is likely to be impacted by sluggishness in the higher-priced segments, slow-moving resale market and persistent overhang due to existing as well as planned project launches.