Hyderabad Real Estate Experiences 38% Decline in New Supply in Q3 2025
Hyderabad's real estate market saw a significant 38% drop in new supply and an 11% decline in sales in Q3 2025, according to Anarock Group's latest report. The trend was similar across India's top seven cities, reflecting a broader slowdown in the housing sector.
Hyderabad Real EstateAnarock GroupHousing MarketLuxury SegmentSales DeclineReal Estate MumbaiSep 25, 2025
The decline in new supply is not just a year-on-year trend but also a quarter-on-quarter drop. In Q2 2025, Hyderabad saw 11,105 new residential launches, which fell to 8,630 units in Q3 2025, representing a 22% decrease.
Interestingly, 87% of the new supply added in Q3 2025 was in the premium, luxury, and ultra-luxury segments, priced above Rs 80 lakh. This indicates a shift towards high-end developments, possibly driven by the preferences of wealthier buyers and the economic conditions affecting the mid and lower segments.
Sales in the third quarter also saw a decline, with 11,035 units sold, down from 12,735 units in the same period last year. However, there was a marginal 2% increase in sales compared to the second quarter of 2025, which might suggest a slight stabilization in the market.
The trend in Hyderabad is part of a broader slowdown across India's top seven cities, including the National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Chennai, and Kolkata. According to Anarock's research, these cities collectively saw a 9% annual decline in housing sales, with approximately 97,080 units sold in Q3 2025 compared to 1,07,060 units in Q3 2024.
Anuj Puri, Chairman of Anarock Group, commented on the data, noting that despite the decline, sales continued to outstrip new supply, indicating a relatively healthy market. He stated, 'Residential demand in India has remained resilient, supported by rising incomes, urbanization, and aspirational homeownership sentiment. However, the sector faces challenges such as affordability, costs, and uneven demand across different markets.'
The report also highlighted the city-wise absorption of units in Q3 2025 and Q3 2024. NCR saw a slight decline from 15,570 units in Q3 2024 to 13,920 units in Q3 2025. MMR experienced a more significant drop from 36,195 units to 30,260 units. Bengaluru and Pune also saw slight declines, while Chennai and Kolkata saw modest increases in unit sales.
Despite the challenges, the real estate sector in Hyderabad and other major cities remains optimistic about future prospects, driven by ongoing urbanization and the growing middle class. However, addressing affordability and cost issues will be crucial for sustained growth in the housing market.
Frequently Asked Questions
What was the percentage decline in new supply in Hyderabad in Q3 2025?
Hyderabad saw a 38% decline in new supply in Q3 2025 compared to the same period in 2024.
How did the sales in Hyderabad's housing market perform in Q3 2025?
Sales in Hyderabad's housing market dropped by 11% in Q3 2025 compared to the same period in 2024.
Which segments saw the most new supply in Q3 2025?
87% of the new supply added in Q3 2025 in Hyderabad was in the premium, luxury, and ultra-luxury segments, priced above Rs 80 lakh.
What was the trend in housing sales across India's top seven cities in Q3 2025?
The top seven cities, including NCR, MMR, Bengaluru, Pune, Chennai, and Kolkata, saw a 9% annual decline in housing sales in Q3 2025.
What factors are supporting the residential demand in India despite the challenges?
Residential demand in India is supported by rising incomes, urbanization, and aspirational homeownership sentiment, despite challenges in affordability and costs.
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