Hyderabad has 29.6 crore sq ft of unsold housing as ICRA projects 30–33% launch growth in FY2027

Hyderabad had about 296 million sq ft (29.6 crore sq ft) of unsold housing in June 2026 — nearly 30% of the top seven cities' total and the highest inventory overhang of any of them, at 2.4 years of sales — according to ICRA. The rating agency also expects Hyderabad to record the fastest growth in new launches among those cities in FY2027, at 30–33%, while sales are projected to grow a slower 11–14%.

Key facts at a glance

• Unsold inventory (June 2026): 296 msf, a multi-year high and nearly 30% of the top seven cities' unsold stock.
• Inventory overhang (years-to-sell): 2.4 years in June 2026, up from 1.6 years in March 2024 — the highest among the top seven cities.
• FY2026 sales: 118 msf of residential area sold, up 4.1%, about 18% of the top seven cities' total and the second-largest market.
• FY2026 launches: 133 msf, up 10.5%, after a 33.6% fall in FY2025.
• FY2027 outlook: launches +30–33%, sales +11–14% (ICRA projections, not actuals).
• Q1 FY2027 (April–June 2026): launches +76.7% year-on-year, mainly in the Southwest; area sold +17.3%.
• Where: the Northwest and Southwest corridors account for 85–90% of sales and launches.

The figures come from ICRA's thematic report released on 16 October 2026, which uses ICRA Research and PropEquity data and excludes stalled projects.

What ICRA reported

ICRA's report, titled "Hyderabad likely to have highest launch growth of 30–33% in FY2027 among top seven cities," compares Hyderabad with Bengaluru, Chennai, Kolkata, the Mumbai Metropolitan Region, NCR and Pune. Hyderabad accounted for about 18% of residential area sold across the seven cities in FY2026, making it the second-largest market by that measure.

The central finding is a gap between supply and demand. ICRA notes that launches have exceeded sales in every year since FY2024, which has pushed unsold stock to its current high.

Housing supply versus sales: FY2026 and the FY2027 outlook

In FY2026, launches (133 msf) exceeded area sold (118 msf) by about 15 msf. That gap is a rough indicator of supply pressure rather than an exact measure of inventory growth, because launches, sales and existing stock differ in timing and composition.

Illustrative arithmetic (AptLok's calculation, not an ICRA figure): if FY2027 matches ICRA's projected growth rates, sales would be roughly 131–135 msf and launches roughly 173–177 msf. That would widen the launch-over-sales gap from about 15 msf to somewhere around 38–46 msf. This is a simple extrapolation from the stated ranges; ICRA's full report may model it differently.

The first quarter of FY2027 pointed the same way. Launches rose 76.7% year-on-year in April–June 2026, mostly in the Southwest region, while area sold rose 17.3%.

Unsold inventory: why 2.4 years matters

"Inventory overhang," or years-to-sell, estimates how long it would take to sell the existing unsold stock at the prevailing sales pace. Hyderabad's figure has climbed steadily:

ICRA expects the overhang to stay elevated at 2.2–2.4 years by March 2027. It estimates that luxury housing accounts for roughly 45–50% of the recent inventory build-up.

What this means for buyers: a high-inventory market usually gives buyers more choice and, in some projects, more room to negotiate — especially among premium developments. It does not establish that prices will fall across Hyderabad. Prices are set project by project and locality by locality, and ICRA's public summary does not give locality-level price forecasts.

Developers push back on the "oversupply" reading

Not everyone accepts the headline. B. Jagannath Rao, President-elect of Credai-Hyderabad, told the Deccan Chronicle that counting a multi-year pipeline and mortgaged stock as immediate unsold inventory overstates the problem. According to the report, he argued that Telangana developers secure master-plan sanctions up front for projects executed over five to six years, and that about 10% of permissible built-up space is mortgaged to GHMC and HMDA until final occupancy certificates are issued.

The disagreement is partly about definition. ICRA counts unsold stock in launched projects, excluding stalled ones; developers point out that much of it is not yet ready for possession. Both views can be true at once: there is a lot of stock, and much of it is still under construction.

Luxury housing is now close to half of sales

ICRA's findings show how far Hyderabad has tilted toward premium homes:

• Luxury sales by area grew 26% in FY2026, recovering after a steep correction in FY2025.
• Luxury's share of area sold rose from 38% in FY2024 to 49% in FY2026, according to coverage of the report.
• Luxury has dominated new launches since FY2024.

One published summary also cites a 44% luxury and 51% mid-segment split without clearly stating the period; that conflicts with the 49% figure, so we have not used it. Readers who need the exact segment shares should consult ICRA's full report.

The luxury theme is echoed by other research. Our earlier coverage of the CRE Matrix H1 2026 data found unsold stock of about 1.43 lakh units and an overhang of about 29 months — a different measure and unit from ICRA's, but a similar direction.

Where Hyderabad's supply is concentrated

ICRA says the Northwest and Southwest corridors account for 85–90% of Hyderabad's residential sales and launches. It names Kokapet, Neopolis, Tellapur and Khanapur among the key micro-markets, and the western region leads the city.

These areas sit close to the IT employment hubs of Gachibowli, HITEC City and the Financial District, which has supported demand. For locality-level detail, see AptLok's guides to Kokapet and Tellapur, and the neighbouring Financial District. ICRA's public summary does not give locality-level price forecasts, and neither do we.

Concentration cuts both ways. A cluster of launches in a few micro-markets can mean wide choice for buyers, but also many competing projects chasing the same demand. For the quarterly view of the same story, read Anarock's Q3 2026 data, which found Hyderabad sales up 15% and launches up 120% in July–September.

For a deeper look at the premium segment, read our companion analysis: Hyderabad luxury housing boom: are developers building faster than buyers can purchase?

What this means for different readers

The question to watch

The headline number — 29.6 crore sq ft of unsold housing — matters less than a harder question: is the concentration of premium supply in western Hyderabad creating better buying opportunities, or building up investment risk? The answer will differ by project, developer and possession date. If sales growth of 11–14% materialises while launches grow 30–33%, overhang is unlikely to fall quickly; if sales outperform, it could ease. AptLok will track this against quarterly data from Anarock, CRE Matrix and others.

About the data

ICRA's headline findings are publicly available on its website; the full thematic report is subscriber-restricted. FY2027 figures are projections, not completed sales or launches. Numbers from ICRA, Anarock and CRE Matrix use different methodologies and periods and should not be compared directly.

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