Sales down marginally q-o-q; Q3 2025 sees over 8,400 housing units sold

• Sales decreased by 2.8% q-o-q to 8,423 units in Q3 2025, with a 2.6% y-o-y decline, showing continued stability in demand for residential units, even as early signs of sluggishness become visible.
• Notably, 39% of homes sold in Hyderabad in Q3 were priced at INR 1.0-1.5 crore, while 17% were in the INR 1.5-3.0 crore segment, clearly indicating the strong demand prevailing in the mid and premium segments across the city.

New launches totalling 8,865 units are down 11.7% q-o-q and 21.7% y-o-y

• New launches decreased by 11.7% q-o-q to 8,865 units in Q3 2025, maintaining the downward trend with a 21.7% y-o-y decline, indicating developers were exercising caution amid high inventory levels.
• In Q3, the Western Suburbs dominated new launches (81.7%). The Premium segment remained strong, with 75.2% of units priced above INR 1.0 crore and 27.4% in the INR 1.5-3.0 crore range.

Housing prices up y-o-y across all submarkets

• Capital values hit INR 7,648 per sq ft in Q3, up 2.0% q-o-q and 7.7% y-o-y. Northern Suburbs-Villas (3.0%) and Prime Secondary (2.7%) led quarterly growth. Prime Secondary (11.6%), Western Suburbs (8.7%) and Northern Suburbs-Villas (8.3%) topped annual gains.
• Gross rents rose 2.4% q-o-q while maintaining a solid 4.4% y-o-y growth in the city, indicative of a strong rental market driven by increasing job creation and migrants moving to the city for employment.

Outlook: Sales expected to be stable, with price growth and inventory levels to be under watch

• Housing demand is likely to remain strong, driven by rising incomes, office market growth, migration and the desire for a high quality of life. Capital values to continue upward, though potentially slower in the short-term as developers look to maintain momentum.
• New launches are expected to maintain focus on premium segments, driven by significantly increased land values and growing consumer preference for spacious apartments with high-quality amenities. But price growth and inventory levels will be watched carefully.