Hyderabad’s residential real estate market witnessed a sharp slowdown in 2025, with housing sales declining 23 per cent year-on-year to around 44,885 units, while new project launches fell steeply by 26 per cent to about 43,260 units, according to data released by ANAROCK Research. Despite the contraction in volumes, the city stood out for tighter supply conditions, which helped limit inventory build-up.

The drop in Hyderabad’s launches was among the steepest across India’s top seven cities, reflecting developers’ cautious stance amid rising costs, price hardening and macroeconomic uncertainties. However, the city also reported a two per cent decline in unsold inventory, bucking the national trend of rising stock levels.

At the national level, housing sales across the top seven cities fell 14 per cent year-on-year in 2025 to nearly 3.96 lakh units, compared to about 4.6 lakh units in 2024. In contrast, the overall sales value rose 6 per cent, crossing Rs6 lakh crore, driven by higher ticket sizes and sustained demand for premium homes.

Mumbai Metropolitan Region (MMR) remained the largest housing market with sales of about 1.28 lakh units, despite an 18 per cent annual decline, followed by Pune (65,135 units) and Bengaluru (62,205 units). Chennai was the only city to record growth, with sales rising 15 per cent during the year.

On the supply side, the top seven cities saw 4.19 lakh new homes launched in 2025, a marginal 2 per cent increase over the previous year. While MMR and Bengaluru together accounted for nearly half of all new launches, Hyderabad and MMR were the only two cities to see a contraction in supply, with Hyderabad registering the sharpest fall.

“2025 was marked by global and domestic uncertainties, including geopolitical tensions, IT sector layoffs and rising costs,” said Anuj Puri, Chairman, ANAROCK Group. “While sales volumes stabilised around 4 lakh units, the market clearly shifted towards higher-value homes, leading to an increase in overall transaction value.”

ANAROCK data shows that over 21 per cent of new supply in 2025 was priced above Rs2.5 crore, reflecting the continued post-pandemic preference for larger and premium homes. Average residential prices across the top cities rose 8 per cent annually, with Delhi-NCR recording the highest increase of 23 per cent, while other cities, including Hyderabad, saw single-digit appreciation.

Looking ahead, industry experts believe that interest rate cuts by the RBI and disciplined pricing by developers could revive demand momentum in 2026, even as developers remain selective about new launches.