Hyderabad luxury housing boom: ICRA says luxury is 49% of area sold, and 45–50% of the unsold stock build-up

Luxury homes made up about 49% of the residential area sold in Hyderabad in FY2026, up from 38% in FY2024, and ICRA estimates they account for 45–50% of the city's recent unsold-inventory build-up. In other words, premium housing is both the strongest part of Hyderabad's market and the part where supply is piling up fastest.

Key facts at a glance

• Luxury share of area sold: 38% in FY2024 to 49% in FY2026, according to coverage of ICRA's October 2026 report.
• Luxury sales growth: area sold in the luxury segment rose 26% in FY2026, after a steep correction in FY2025.
• Luxury launches: luxury housing has dominated new launches since FY2024, per ICRA.
• Share of inventory build-up: an estimated 45–50%, per ICRA.
• Total unsold stock (June 2026): 296 msf, with an inventory overhang of 2.4 years.
• Ultra-luxury (₹10 crore and above): ₹8,562 crore of sales from 625 homes in FY26, per India Sotheby's International Realty and CRE Matrix.

How fast luxury has grown

ICRA's September 2025 Hyderabad report put luxury's share of both sales area and new launches at 41–45% in FY2025, up from 25–29% in FY2021. The October 2026 coverage takes the share of area sold to 49% in FY2026. That is an 11-percentage-point rise in two years from FY2024's 38%.

The shares cited from the two ICRA reports use different year-pairs and may not be strictly like-for-like. ICRA's public summary does not state the price threshold it uses to define "luxury," so these figures should not be mapped onto a specific ticket size.

Are developers building faster than buyers are buying?

On ICRA's numbers, yes, across the market as a whole. Launches have exceeded sales in every year since FY2024. In FY2026, Hyderabad launched 133 msf and sold 118 msf, and ICRA projects FY2027 launches to grow 30–33% against sales growth of 11–14%. We covered the full picture in our analysis of ICRA's Hyderabad report.

For luxury specifically, the picture is more nuanced, because both sides are growing:

• Demand is real. Luxury area sold rose 26% in FY2026, and its share of total sales climbed to roughly half.
• Supply has grown faster. Luxury has led launches since FY2024 and, by ICRA's estimate, makes up 45–50% of the inventory build-up.

There is also a notable shift in expectations. In its September 2025 report, ICRA observed that the slowdown in luxury sales velocity suggested developers might take a more measured approach to launches. Its October 2026 outlook instead projects Hyderabad's launches to grow faster than any other top-seven city. Developers appear to be responding to the FY2026 sales recovery by launching more, not less.

What the ₹10 crore-plus data shows

At the top of the market, the India Sotheby's International Realty and CRE Matrix Southern India High-End Luxury Housing Report recorded ₹8,562 crore of sales in homes priced at ₹10 crore and above in Hyderabad in FY26, from 625 units. Unit sales rose 10% year-on-year, and sales value has grown about 3.5 times in four years from ₹2,447 crore.

• Kokapet: the top locality, with sales of ₹1,298 crore.
• Size: about 355 apartments above 8,000 sq ft were sold, roughly 57% of Hyderabad's ₹10 crore-plus sales.
• Villas and row houses: about 40% of FY26 sales value.
• Space per rupee: ₹10 crore buys about 6,210 sq ft in Hyderabad, against about 3,930 sq ft in Bengaluru.

Ashwin Chadha, CEO of India Sotheby's International Realty, said: "Hyderabad has set a new benchmark for ultra-luxury volume in southern India." Read the details in our earlier report, Hyderabad leads South India's ₹10 crore-plus housing market.

Keep the scale in mind. A segment of 625 homes in a year is small next to Hyderabad's overall volumes. CRE Matrix counted 26,068 homes sold in the first half of 2026 alone, and Anarock recorded about 12,970 in July–September. The two data sets cover different periods and price bands, so they are not directly comparable. ICRA's "luxury" category, which accounts for roughly half of area sold, is evidently much broader than ₹10 crore and above.

The unsold-stock side of the story

CRE Matrix's half-year data points the same way as ICRA's. It reported 1,42,722 unsold units at the end of H1 2026, up 21%, an overhang of about 29 months, with launches up 37% and sales down 13%. See our report on Hyderabad's rising unsold stock. Anarock's Q3 data showed Hyderabad sales rising 15% while launches jumped 120% (read the Q3 analysis).

ICRA reports that 85–90% of Hyderabad's sales and launches are in the Northwest and Southwest corridors, naming Kokapet, Neopolis, Tellapur and Khanapur. That means much of the luxury supply is competing in the same few micro-markets.

The developers' view

Credai-Hyderabad's President-elect, B. Jagannath Rao, has argued that counting a multi-year pipeline and mortgaged stock as immediate unsold inventory overstates the problem, according to the Deccan Chronicle. He noted that Telangana developers secure master-plan sanctions up front for projects executed over five to six years, and that about 10% of permissible space is mortgaged to GHMC and HMDA until occupancy certificates are issued. On that reading, a lot of luxury stock is simply under construction rather than sitting empty.

Buyer or risk? What to weigh before buying luxury

ICRA's public summary does not forecast prices, rents or resale values, so none of the points below is a prediction. They are checks worth making in a market with this much premium supply:

The question to watch

Hyderabad's luxury boom is not a story of supply without demand, since luxury sales grew 26% and now account for roughly half of area sold. The question is pace: whether sales growth of 11–14% can absorb launches growing 30–33%, much of it premium and in the same western corridors. If it can, the overhang eases; if not, buyers gain leverage and developers face pressure. We will track this against ICRA, Anarock, CRE Matrix and Knight Frank data as each quarter reports.

About the data

ICRA's headline findings are public; its full thematic report is subscriber-restricted. FY2027 figures are ICRA projections, not completed results. ICRA, Anarock, CRE Matrix and India Sotheby's International Realty use different definitions, periods and price bands, so their numbers should not be added or compared directly.

For locality-level price benchmarks, market trends and property listings across Hyderabad, explore the AptLok Newsroom and locality guides at aptlok.com.