Hyderabad’s housing market is seeing a sharp rise in unsold inventory as new launches continue to outpace sales.
According to the CRE Matrix Housing Report for H1-CY26, unsold housing stock in the city rose 21 per cent year-on-year to 1,42,722 units in the first half of 2026.
The inventory overhang has increased to around 29 months, meaning the existing stock would take nearly two-and-a-half years to be absorbed at the average sales pace seen over the past three years.
Developers launched 49,656 housing units in H1-CY26, up 37 per cent from a year earlier, while only 26,068 units were sold. Sales volumes declined 13 per cent year-on-year, marking the weakest half-year performance since 2022.
However, only 21 per cent of the unsold stock is ready to move in or scheduled for completion in 2026. Around 59,400 units are expected to be completed in 2027-28, while another 53,800 units are due from 2029 onwards.
NAREDCO Telangana president Sreedhar Reddy Koppula said the inventory should be seen in the context of Hyderabad’s ability to absorb new supply.
“Hyderabad is not piling up dead stock; rather, it is efficiently absorbing supply as it hits the market,” he told TNIE. He added that the average inventory age of around 10 quarters showed that housing supply was continuing to move.
Nearly half of the unsold homes are priced above Rs 1.5 crore, while properties in the Rs 1 crore to Rs 1.5 crore range account for around 30 per cent.
Despite lower sales volumes, the total value of housing sales stood at Rs 52,913 crore in H1-CY26. The average ticket size increased by around 10 per cent to Rs 2.03 crore from Rs 1.85 crore in H1-CY25.
The North West accounted for the largest share of unsold inventory, with 1,13,016 units, up 24 per cent year-on-year. Its inventory overhang stood at around 30 months.
The South West had 10,537 unsold units, with an overhang of around 20 months. The North East recorded 9,681 unsold units, up 13 per cent, while the South East had 9,488 units, up 11 per cent.
Sreedhar Reddy said the city’s growth corridors accounted for 63 per cent of housing absorption and that much of the inventory in these areas was part of the future supply pipeline.
Hyderabad also has 169.7 million sq ft of existing office stock, with another 102.7 million sq ft under construction. Office leasing stood at 6.8 million sq ft in H1-CY26.
With nearly 50,000 homes launched against about 26,000 sales in just six months, inventory management is likely to become increasingly important, especially as a large number of projects are scheduled for completion between 2027 and 2029.
