Hyderabad’s real estate market has seen a dramatic transformation. Average property rates have climbed to nearly ₹10,000 per sq ft—a 43% jump over five years, driven by luxury launches, infrastructure growth, and investor interest. Yet, this boom has come with a downside: unsold inventory has surged 177%, reaching 98,000 units, the highest among India’s top cities.
What’s Driving the Price Surge?
Premium launches in Kokapet, Financial District, and Narsingi
Developer focus on ultra-luxury homes priced above ₹2.5 crore
Post-COVID demand for larger homes and gated communities
Rising land and construction costs
Why Is Inventory Piling Up?
Oversupply in luxury and premium segments
Declining demand for affordable housing
Speculative buying with low end-user absorption
Shift toward renting due to high EMIs and delayed possession
Market Outlook Experts warn of a demand-supply mismatch. While prices continue to rise, actual buyer sentiment is cooling. Developers may need to recalibrate toward mid-income housing and faster delivery timelines to avoid long-term stagnation.
