Hyderabad, January 2026 – Hyderabad’s residential real estate market has once again stood out among India’s major cities. According to the latest report by Knight Frank India, home sales in Hyderabad increased by 4% during the second half of 2025 (H2 2025), even as most of the country’s top housing markets witnessed stagnation or decline.
The report highlights that while the top eight Indian cities collectively recorded a 1% drop in residential sales, Hyderabad moved in the opposite direction, reinforcing its position as one of the most resilient and demand-driven housing markets in the country.
City-Wise Home Sales Performance (H2 2025)
| City | Home Sales (Units) | YoY Change |
|---|---|---|
| Mumbai | 97,188 | +1% |
| Bengaluru | 55,373 | 0% |
| Pune | 50,881 | -3% |
| Delhi-NCR | 52,452 | -9% |
| Chennai | 18,262 | +12% |
| Kolkata | 16,896 | -3% |
| Hyderabad | 38,403 | +4% |
Why Hyderabad Is Outperforming Other Major Cities
Real estate analysts attribute Hyderabad’s steady growth to a combination of end-user-driven demand, job creation through Global Capability Centres (GCCs), and relatively stable pricing compared to other metros.
While cities like Delhi-NCR and Pune faced demand moderation due to high base effects, pricing pressures, and investor fatigue, Hyderabad benefited from:
- Strong employment growth in IT, fintech, life sciences, and GCCs
- Large supply of mid-income and premium housing across western and southern corridors
- Infrastructure-led expansion driven by ORR, radial roads, and upcoming RRR connectivity
- Relatively affordable ticket sizes compared to Mumbai and Bengaluru
West and South Hyderabad Lead Demand
According to market observations aligned with the Knight Frank data, residential demand in Hyderabad during H2 2025 remained concentrated in the western micro-markets such as Gachibowli, Kondapur, Kokapet, Narsingi, Tellapur, and Kollur, driven by proximity to IT campuses and Financial District offices.
At the same time, South Hyderabad areas including Rajendranagar, Budvel, Shamshabad, and Tukkuguda witnessed rising interest due to improved road infrastructure, airport-centric development, and upcoming township projects.
Contrast With Other Major Cities
The report highlights a sharp contrast between Hyderabad and other large markets:
- Delhi-NCR saw a steep 9% decline in sales, largely due to high prices and selective demand.
- Pune and Kolkata recorded a 3% drop, indicating cautious buyer sentiment.
- Bengaluru remained flat, suggesting market consolidation after strong post-pandemic growth.
- Chennai emerged as another positive performer with a 12% jump, albeit on a smaller base.
Outlook for 2026
Industry experts expect Hyderabad’s residential momentum to continue into 2026, supported by new GCC announcements, sustained job creation, infrastructure execution, and township-scale developments.
While interest rates and global macroeconomic conditions remain watch factors, Hyderabad’s balanced mix of end-users and long-term investors is likely to keep demand steady compared to more volatile metro markets.
Source: Knight Frank India Residential Market Update, H2 2025. Sales figures are rounded and subject to revisions based on final registrations.
