Hyderabad Outpaces India in New Housing Supply

Hyderabad has emerged as India's fastest-growing residential market by new-launch volume in the April-June 2026 quarter, even as sales momentum softened across most of the country. According to ANAROCK Research, developers launched approximately 16,970 new residential units in the city during the quarter, a 53% year-on-year jump that was the strongest supply growth among all major Indian cities. The surge stands out because it arrived alongside a broader national slowdown in transactions.

Across India's top seven cities, housing sales fell 6% year-on-year in Q2 2026 even as new launches rose 7% nationally, with premium housing continuing to dominate supply. Hyderabad was one of only three cities, alongside Kolkata and Bengaluru, to register positive annual sales growth during the quarter, with the city posting a 2% year-on-year rise in residential sales even as overall demand cooled.

Commenting on the broader trend, Anuj Puri, Chairman of ANAROCK Group, said the national slowdown was largely a fallout of external shocks rather than weak fundamentals. He noted that the sector's readings reflected the impact of the Middle East conflict, adding that a more balanced market has emerged where new supply is catching up with absorption after sales growth moderated across most top cities. Puri also pointed out that large listed developers continued launching projects on land acquired earlier, which helped maintain healthy supply levels despite the softer demand environment.

Geographically, the western corridor dominated Hyderabad's new supply, capturing a 72.5% share of launches during the quarter, driven largely by activity in Kollur, while Bachupally in the north also saw healthy traction, accounting for a 20% share of new launches. Suburban locations made up nearly 90% of all launches, underlining the continued push of development toward the city's peripheral growth corridors rather than the core.

Pricing data reinforces Hyderabad's positioning as a value-for-money market relative to peers. More than 82% of launches in the city during the quarter fell within the ₹80 lakh-₹2.5 crore price bracket, a sharp contrast to markets like the National Capital Region, where 61% of new supply was priced above ₹1.5 crore in the luxury segment. This mid-segment concentration has kept Hyderabad accessible to a wider base of end-users even as national average prices climbed 7% year-on-year.

Other research houses have flagged similarly strong readings for the city. PropEquity data cited a 22% year-on-year increase in Hyderabad's housing sales to 14,410 units for the quarter, attributing the momentum to robust IT/ITeS sector activity, improved affordability, and a steady pipeline of quality projects from branded developers. Multiple trackers converge on the same conclusion: Hyderabad's residential market is expanding on both the demand and supply sides while several peer cities cool off.

For homebuyers, the takeaway is straightforward. A city posting the country's sharpest rise in new supply while still growing sales signals genuine developer confidence in long-term demand, not merely inventory dumping. With infrastructure projects like Metro Phase II and the Regional Ring Road extending connectivity to peripheral corridors, buyers evaluating western and northern Hyderabad have a widening set of credible, RERA-registered options to choose from in the mid-premium bracket.

Mahindra Lifespaces has a long-standing presence in this market through Mahindra Ashvita in Kukatpally, a green-certified residential development that has been part of the city's growth story since its early launch years. As Hyderabad's new-supply cycle accelerates, established, delivery-proven developers with a track record in the city remain a reference point for buyers weighing new project announcements against completed communities.