For much of the last three years, Hyderabad has been one of India’s most dynamic property markets. Tower cranes dotted the skyline, and developers pushed out new launches with bullish confidence. But the mood has shifted noticeably in 2025. A new report by Financial Express reveals that Hyderabad has recorded the steepest decline in residential sales among major Indian cities, with a 38% drop in Q1 compared to the previous quarter.
That’s not a small hiccup — it’s a signal worth paying attention to.
What’s driving this slowdown? For starters, oversupply. Between 2021 and 2023, the city saw a flood of new launches — some estimates peg it at over 90,000 units during that period. Much of that inventory was targeted at the luxury segment, particularly in the ₹2 crore-and-above range. But absorption hasn’t kept pace. As of Q1 2025, Hyderabad has 30,320 unsold luxury units, the highest in the country.
It’s a classic case of the market getting ahead of itself.
Buyers, meanwhile, are recalibrating. There’s a visible shift in sentiment — away from speculative, high-value homes and toward mid-segment offerings that offer genuine usability, better pricing logic, and liveability. It’s not that buyers have vanished — they’re simply becoming more selective, more value-conscious, and less impressed by bells and whistles.
This trend is reinforced by ANAROCK’s recent numbers, which suggest that investor caution is high, especially in projects with poor absorption or high FSI saturation. Even in the so-called “affordable” segment, demand is uneven. Inventory in the sub-₹50 lakh bracket is growing, but actual uptake has been slower than expected — possibly due to mismatch between location, product, and price expectations.
For developers, this could mark the beginning of a strategic reset. We may see fewer mega launches and more recalibrated offerings focused on 2 and 3 BHK units in growth corridors. The days of leading with large unit sizes and inflated pricing — banking on brand value alone — may be fading. Instead, success will lie in project planning, spatial efficiency, and price-to-function alignment.
From a buyer’s perspective, this moment presents an opportunity wrapped in uncertainty. Projects with high unsold stock may become more negotiable, especially in towers nearing completion. Those who can cut through the marketing gloss and focus on actual usability — loading efficiency, layout logic, natural ventilation — are likely to find long-term value.
It’s also worth noting that Hyderabad’s fundamentals haven’t collapsed. The city still benefits from competitive land prices, expanding employment hubs, and planned infrastructure. What we’re witnessing is less of a crash and more of a market exhale — a breather after a long sprint.
There’s a bit of a “Boulevard of Broken Dreams” feel to the current market — wide roads, empty towers, and developers wondering where the crowd went. But this phase won’t last forever. Markets correct, buyers return, and clarity always rewards the patient.
For AIQYA readers, the takeaway is clear: don’t let fear drive your decisions — let facts and functionality guide them. If you’re a genuine end-user or a long-term investor, this phase could open up pockets of real value — but only if you’re looking beyond the brochure.
This visual tracker summarizes the current state of Hyderabad’s residential market. It reflects the steep drop in sales sentiment, shifting buyer preferences, inventory buildup in the ₹2 Cr+ segment, and key metrics investors and end-users should monitor. The AIQYA takeaway? Read beyond sentiment—functional, mid-segment homes in well-planned locations are worth watching.
