Hyderabad Leads India in New Housing Supply Growth Despite Moderation in Home Sales
Developers launched approximately 16,970 new residential units in Hyderabad during the quarter, representing a 53% year-on-year increase, the strongest supply growth among all major Indian cities. The sharp rise underscores continued developer confidence in the city's long-term housing demand despite a softer national sales environment.
While supply expanded significantly, home sales in Hyderabad remained relatively stable. The city recorded a 2% year-on-year increase in residential sales, making it one of the few major markets to post positive annual growth during the quarter. Nationally, housing sales across the top seven cities declined 6% year-on-year to around 90,715 units.
Hyderabad, along with the Mumbai Metropolitan Region (MMR) and Bengaluru, accounted for a substantial share of new housing launches during the quarter. MMR added around 34,555 units, while Bengaluru also reported a strong increase in project launches, reflecting sustained developer activity in key metropolitan markets.
According to Anuj Puri, Chairman of ANAROCK, the broader slowdown in housing sales was primarily driven by the ongoing conflict in West Asia and uncertainty surrounding the IT and ITeS sectors, prompting many prospective homebuyers to postpone purchase decisions. He said large listed developers continued launching projects on land acquired earlier, helping maintain healthy supply levels despite weaker demand.
The latest data indicates that Hyderabad continues to attract strong developer interest, supported by its expanding infrastructure, employment opportunities, and long-term growth prospects. The robust pipeline of new residential projects is expected to provide homebuyers with a wider range of choices across different price segments, even as market demand remains measured.
Across India's top seven cities, average residential prices increased 7% year-on-year, while unsold housing inventory rose 10% to more than 616,000 units, reflecting the impact of higher project launches and relatively slower absorption.
ANAROCK's findings highlight Hyderabad's position as one of the country's most active residential markets, with developers continuing to invest aggressively even as the broader housing sector navigates global economic uncertainties.