Hyderabad likely to have highest launch growth of 30 -33% in FY2027 among top seven cities by ICRA
In Q1 FY2027, Hyderabad witnessed robust launches, higher by 76.7% YoY, majorly in the Southwest region. Hyderabad has the highest inventory overhang among the top seven cities. With launches exceeding sales every year since FY2024, inventory overhang has risen, resulting in years-to-sell (YTS) inching up to 2.4 years as of June 2026 from 1.6 years as of March 2024.
*Hyderabad is the second-largest residential real estate market among the top seven cities, accounting for around 18% of the area sold in FY2026. Area sold rose moderately by 4.1% to 118 msf in FY2026, supported by a 26% spike in luxury segment sales after a steep correction in FY2025. In Q1 FY2027, area sold grew by 17.3%, driven by robust and lumpy launches. ICRA estimates the full-year growth at 11-14% in FY2027.
* New launches in Hyderabad rebounded and rose by 10.5% to 133 msf in FY2026 following a sharp contraction of 33.6% in FY2025 due to some delays in project approvals, supply recalibration by developers and a high base of FY2024 that saw record launches. Launch activity surged by 76.7% YoY in Q1 FY2027, aided by spillover from the previous year. With growth expected to moderate in coming quarters, ICRA projects a 30-33% increase in launch in FY2027, the highest among the top seven cities.
* Hyderabad's unsold inventory reached a multi-year high of 296 msf as of June 2026, accounting for nearly 30% of top seven cities’ total unsold inventory. This is driven by consistently higher launches outpacing sales over FY2024-FY2026 and lumpy supply in Q1 FY2027, with the luxury segment accounting for a large share (45-50%) of the build-up. Consequently, YTS increased to 2.4 years as of June 2026 from 1.6-1.8 years in March 2023-2024, highest among the top seven cities. Given the strong launch pipeline, ICRA expects inventory levels to remain elevated, with YTS likely to be 2.2-2.4 years by March 2027.
* Luxury housing has dominated launches since FY2024, driven by rising demand for premium homes. However, luxury surpassed the mid-segment in area sold only in FY2026, given the relatively moderate sales momentum, with its sales share increasing to 49% from 38% in FY2024. With luxury and mid-segment accounting categories accounting for 44% and 51% of the area sold, respectively, rise in the mid-segment launches in Q1 FY2027 points to a more balanced launch mix, going forward.
* The western region continues to lead Hyderabad's residential market, with the Northwest and Southwest corridors accounting for 85-90% of sales and launches. Key micro-markets such as Kokapet, Neopolis, Tellapur and Khanapur are driven by proximity to IT hubs, strong connectivity, social infrastructure and spillover demand from saturated locations.
Above views are of the author and not of the website kindly read disclaimer
.jpg)
