Hyderabad real estate market faces slowdown: April 2025 saw home registrations slide 12 % year-on-year, unsold stock swell 11 % to 54,458 units, yet the city’s weighted price still rose 11 % to ₹6,326 per sq ft. Over four years, values have leapt 80 %, leaving Delhi and Mumbai behind, while luxury homes above ₹1 crore now claim 20 % of deals and 51 % of sales value, proving demand has moved up-market even as volumes cool.

Sales & inventory slide

Sales & inventory slide reveals a city sitting on 5.8 quarters of stock, up from 5.2 a year ago. Luxury supply clears in 3.9 quarters, but the ultra-luxury ₹20–50 crore tier lingers for 17.1 quarters, hinting at buyer selectivity. Nationwide, sub-₹50 lakh homes lost 18 % in sales and saw new launches plunge 31 %, underscoring pressure at the entry level.

Price surge impact

Price surge impact shows the city average hitting ₹8,772 per sq ft, while Hi-Tech City, Madhapur and Gachibowli quote ₹9,500–₹11,000 per sq ft. Prime Financial District deals close near ₹10,300 per sq ft, and land in Nagole now costs ₹70–₹100 crore an acre. With a four-year rise of 80 %, Hyderabad tops India’s metro league in appreciation.

Demand shift

Demand shift tracks buyers stretching budgets: homes over ₹1 crore climbed from 17 % to 20 % of registrations, and units above 2,000 sq ft grew from 15 % to 18 % in one year. Meanwhile, affordable launches fade, and apartments between 1,000 and 2,000 sq ft still dominate with a 67 % share, proving mid-segment space remains king.

Land-price hotspots

Land-price hotspots paint a mixed map.

• Banjara Hills: ₹1.78–2.80 lakh / sq yd, up 9 % YoY.
• Nagole: ₹2–3 lakh / sq yd (₹70–₹100 crore/acre), up 15 %.
• Bachupally: ₹45,500–57,000 / sq yd, up 6.3 % with plots averaging ₹1.66 crore.
• Adibatla: ₹10,700–16,500 / sq yd, a 7 % bump as aerospace demand builds.
• Kondapur, Gachibowli, and Madhapur parcels have doubled in two years, led by IT corridor spill-over.

Policy & approvals

Policy & approvals show government intent: the GO 111 repeal freed 1.3 lakh acres for new supply; TS-iPASS clears plans in 15 days; and Indiramma grants add ₹5 lakh per eligible family. Developers still lobby for a stamp-duty trim and flexible FSI to jump-start the budget segment.

Investor pulse

Investor pulse remains active. Artha Global’s ₹700 crore NCD speeds the 2.8 mn sq ft Phoenix Triton build, while Meenakshi’s ₹700 crore AIF eyes eight Tier-I partnerships at an 18 %+ IRR. National real-estate PE slipped 3 % to US$8.8 billion in 2024, reflecting cautious but present capital.

Office vacancy trend

Office vacancy trend shows 28 mn square feet empty— a 17.5 % rate—yet GCC leasing soared 396 % to 2.6 mn square feet. Absorption climbed 16 % to 5.9 mn square feet even as fresh supply fell 72 %, hinting that pipeline shrinkage may tighten rents by 2026.

Spotlight: Godrej Regal Pavilion

Godrej Regal Pavilion stands out against the slowdown. The Main Road, Gaganpahad project priced from ₹1.6 crore sits 7.5 km from Shamshabad Bus Hub and 10.3 km from RGIA, offering investors a ready-to-move luxury niche while many builders grapple with completion risk. Early buyers have already booked 8–10 % gains since late 2024, proving well-placed stock can still move briskly.

Buyer takeaway

Buyer takeaway: Miyapur flats at ₹6,882 per sq ft still leave room for ≈10 % upside; Adibatla remains a value turf at ₹4,069 per sq ft; and Bachupally’s plots post steady 2.3 % quarterly gains, appealing to long-view investors.

Outlook to 2026

Outlook to 2026 pairs caution with hope. A 162 km Metro Phase 2, 15 SRDP flyovers, and ORR upgrades will shrink commutes by up to 30 minutes. With supply at 5.8 quarters—well below the 2019 glut—and premium homes clearing quickly, analysts tip mid-single-digit price growth and steadier sales by late 2026, once today’s mismatch between budget demand and premium supply re-balances.