Hyderabad recorded a marginal 1% year-on-year increase in residential sales to touch 9,541 units in Q1 2026, reflecting stable demand despite broader market moderation, according to a report by Knight Frank India.
Residential prices in the city continued to firm up, with the weighted average price rising 9% YoY to ₹8,211 per sq ft. Meanwhile, new launches stood at 9,975 units during the quarter, the report said.
“While most high-volume residential markets have recorded a slowdown, Hyderabad has maintained stable sales, underpinned by steady end-user demand. At the same time, a clear shift toward premium housing has led to reduced traction in the affordable segment,” Joseph Thilak, National Director, Occupier Strategy and Solutions (Hyderabad and Chennai), Knight Frank India, said
Premium segments supports demand
Knight Frank India said that the demand in remained concentrated in mid and premium housing categories. The ₹1–2 crore segment dominated the market, accounting for 4,061 units and nearly 43% of total sales, making it the largest contributor.
The ₹50 lakh– ₹1 crore segment followed with 2,467 units, indicating continued traction in the mid-income category. Higher ticket-size homes also saw gradual activity, with the ₹2–5 crore segment recording 2,192 units, the data showed.
At the upper end, the ₹5–10 crore segment witnessed notable growth, with 415 units sold, marking one of the strongest expansions among all price brackets.
“While have moderated across segments on an annual basis, strong traction in premium categories such as ₹2–5 crore, ₹5–10 crore, and ₹20–50 crore has helped sustain overall market stability,” the report said.
Housing sales drop 4% across top eight cities
Housing sales across India’s top eight cities moderated by 4% year-on-year in Q1 2026 to 84,827 units, down from 88,361 units in the same period last year, the report said. The dip signals early signs of recalibration amid global uncertainties, including geopolitical tensions such as the US-Iran conflict, following a prolonged period of strong growth.
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Sales declined in key markets, including Mumbai (down 7% to 23,185 units), Delhi-NCR (down 11% to 12,734 units), and Pune (down 11% to 12,711 units). In contrast, demand remained resilient in Bengaluru (up 5% to 13,092 units), Hyderabad (up 1% to 9,541 units), and
New supply also declined marginally by 2% to 94,855 units during the quarter. Launch activity slowed across most cities, except Bengaluru, Chennai, and Ahmedabad. NCR recorded the sharpest drop in new launches at 8% YoY, followed by Hyderabad and Kolkata (down 6% each), while Pune and Mumbai saw relatively smaller declines of 5% and 1%, respectively.
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Demand remained skewed toward premium housing. Sales of homes priced above ₹1 crore grew 11% YoY, even as the sub- ₹50 lakh and ₹50 lakh– ₹1 crore segments contracted by 23% and 12%, respectively. The ₹1–2 crore segment drove much of this growth, rising 10% YoY and accounting for 29% of total sales. Higher-end categories also saw strong traction, with sales increasing 17% in the ₹2–5 crore segment, 12% in the ₹10–20 crore segment, and a sharp 80% surge in the ₹20–50 crore bracket.