Housing sales displayed some sluggishness, declining 8.4% q-o-q and also decreasing y-o-y

• Hyderabad’s residential sales declined by 8.4% q-o-q in Q2 2026, attributed to rising property prices and cautious buyer behaviour amid macroeconomic uncertainties and IT sector challenges.
• The Western Suburbs submarket led sales in Q2 2026, followed by Northern Suburbs apartments and Eastern Suburbs. Projects like Team4aria, Prestige Golden Grove and My Home Udayan in the Western Suburbs saw healthy quarterly sales volumes.

New launches declined significantly by 38% q-o-q and 34% y-o-y in Q2 2026

• New residential supply declined as developers focused on clearing existing inventory rather than launching new projects. With sales showing some sluggishness, developers are looking to control inventory build-up.
• The Western Suburbs contributed 4,847 new units, comprising 73% of quarterly launches. Key developments included Team4 Aria and Godrej Brooklyn Avenue, while Candeur Eternia launched in the Northern Suburbs submarket during Q2 2026.

Capital values and rents rose 2.0% and 1.6% q-o-q, respectively

• Hyderabad’s residential capital values increased in Q2 2026, primarily due to premium pricing of projects, rapid peripheral infrastructure development along the Outer Ring Road (ORR) and sustained growth in the luxury housing segment.
• Hyderabad’s rental market showed healthy q-o-q growth of 1.6%, driven primarily by high-demand IT corridors. This upward trajectory is reflected in apartment rental activity across key locations including Gachibowli, Madhapur, Kondapur and others.

Outlook: Hyderabad’s residential market expected to show steady growth, driven by structural factors

• The Hyderabad residential market outlook continues to indicate sustained price appreciation and healthy supply-demand dynamics, with the Western Suburbs emerging as the preferred destination, driven by IT corridor expansion and enhanced metro connectivity.
• Hyderabad’s residential rental market is also expected to continue its robust growth, bolstered by sustained demand from the growing tech workforce and the strategic Metro Phase 2 development.