Hyd shifts towards premium homes

Demand remains resilient as buyers move up the value chain

PROPERTY PULSE

Hyderabad's residential market continued to show resilience during the first half of 2026, with homebuyers increasingly opting for mid-premium and premium housing even as developers adopted a cautious approach to new launches, according to Knight Frank India's H1 2026 market report.

Housing sales stood at 19,249 units during H1 2026, registering a modest 1 per cent year-on-year increase, while new launches declined 2 per cent to 20,466 units. The report attributes the moderation in fresh supply to a more calibrated development strategy and enhanced regulatory oversight.

The city's housing demand continued to move towards higher-value homes. Properties priced between ₹1 crore and ₹2 crore accounted for the largest share of sales at 45 per cent, while demand for homes priced between ₹2 crore and ₹5 crore increased by 30 per cent year-on-year. In contrast, the affordable housing segment below ₹50 lakh continued to lose market share.

West Hyderabad remained the dominant residential destination, accounting for 61 per cent of launches and 63 per cent of sales. Locations such as Financial District, Kokapet, Narsingi and Nanakramguda continued to benefit from strong office leasing activity, expanding Global Capability Centres (GCCs) and ongoing infrastructure development.

Average residential prices across Hyderabad increased 7 per cent year-on-year to ₹8,258 per sq. ft., while Banjara Hillsrecorded the highest appreciation at around 7 per cent, reflecting sustained demand for premium housing.

The market's healthy absorption levels and steady price appreciation indicate strong fundamentals. He added that buyers are increasingly preferring larger homes, better amenities and integrated residential developments, supported by rising incomes and confidence in Hyderabad's long-term growth, said Joseph Thilak, national director – occupier strategy and solutions (Hyderabad & Chennai), Knight Frank India.

The report further suggests Hyderabad's strong employment base, led by the technology, GCC, BFSI and professional services sectors, will continue to support housing demand, with premium and mid-premium developments expected to remain the key growth drivers.

Steady Shift

• Housing sales remained stable.
  
• Average prices rose 7%.
  
• ₹1-2 crore homes led demand.
  
• West Hyderabad dominated activity.
  
• Premium segment continued to strengthen