Hyderabad’s unsold housing inventory not a concern, says Credai prez elect

Hyderabad

Despite reports indicating that Hyderabad has over 96,000 unsold residential units, real estate developers say the figure is not a cause for concern, pointing to steady annual sales, market cycles and strong long-term demand driven by infrastructure growth and investment inflows.

Speaking exclusively to The Hans India, Gummi Ram Reddy, Credai (Confederation of Real Estate Developers Association of India) National President Elect, dismissed fears of oversupply, stating that the city consistently records sales of over one lakh housing units every year. “When you look at the numbers in context, 96,000 units roughly equate to one year of sales. That is not alarming,” he said, adding that the methodology used to calculate unsold inventory often includes under-construction or yet-to-be-launched units, making the figures debatable.

He clarified that the so-called unsold stock is not entirely made up of ready-to-move-in homes. “In any completed project, around 10% of inventory typically remains unsold even after receiving the occupancy certificate. This is normal due to mortgage norms and release of units post-certification,” he explained.

According to industry players, buyer demand in Hyderabad has remained stable over the past two years. While the city witnessed a strong uptrend earlier, including annual price appreciation of 10–15%, prices have largely stabilised over the last year. “This is not a slowdown in a negative sense. It is a healthy stabilisation after a strong growth phase,” Ram Reddy said, adding that buyers are now taking more time to evaluate options rather than rushing purchases based on speculative price increases.

Unsold inventory is spread across the city rather than concentrated in specific pockets, developers said. However, western and south-western micro-markets of Hyderabad continue to perform better in terms of sales due to superior infrastructure, connectivity and proximity to employment hubs.

“When the market is strong, sales happen across locations. When sentiment softens slightly, it reflects citywide,” the Ram Reddy noted.

The affordable housing segment has emerged as the most challenging, largely due to rising construction costs and outdated pricing thresholds. Under current government norms, homes priced up to Rs45 lakh qualify as affordable.

“In Hyderabad today, it is extremely difficult to build quality homes at Rs45 lakh. The threshold needs to be raised to at least Rs75–90 lakh to reflect market realities,” the Ram Reddy said.

He also urged the government to provide incentives such as reduced GST on construction contracts and lower stamp duty and registration charges for affordable homes. “GST on construction contracts is as high as 18%, which ultimately gets passed on to the buyer,” Reddy said.

Developers are becoming more cautious with new project launches, aligning supply with market sentiment. While some developers are offering limited discounts or construction-linked incentives such as bearing EMI interest during the construction period, completed projects typically see minimal offers.

“In finished projects, there is little scope for incentives beyond price adjustments. Discounts vary depending on the developer’s financial position,” the Ram Reddy explained.

Credai leader is confident that the existing inventory will be absorbed within the next 12 to 18 months, supported by major infrastructure projects and investment commitments announced by the Telangana government.

Initiatives such as the Future City project, Musi Riverfront development, Regional Ring Road (RRR), aerospace investments, and proposed infrastructure spending in areas like Shamshabad are expected to significantly boost buyer confidence.

“With large-scale investments, global roadshows, and infrastructure expansion, sentiment will improve. Once these plans translate into on-ground development, demand will accelerate,” the Ram Reddy said.

Overall, real estate stakeholders believe Hyderabad’s housing market remains fundamentally strong, with stable demand, realistic pricing and long-term growth drivers firmly in place.