Mumbai, Oct. 21 -- Residential property launches in Hyderabad are projected to grow 30-33 per cent year-on-year in FY27, the fastest pace among India's top seven cities, according to credit rating agency ICRA. The increase follows a 10.5 per cent rise in launches to 133 mn square feet (msf) in FY26, after a 33.6 per cent contraction in FY25.
Launch activity rose 76.7 per cent year-on-year in the first quarter of FY27, partly because some projects were carried forward from the previous financial year. ICRA expects growth to moderate in the remaining quarters, while the combination of stronger supply and slower absorption could keep inventory elevated.
Unsold residential inventory stood at 296 msf as of June 2026, representing nearly 30 per cent of the total unsold stock across the top seven cities. Higher launches than sales between FY24 and FY26, together with substantial supply added in the first quarter of FY27, contributed to the increase. Luxury housing accounted for 45-50 per cent of the inventory build-up.
Hyderabad's years-to-sell metric rose to 2.4 years in June 2026, compared with 1.6-1.8 years in March 2023 and March 2024. ICRA expects the measure to remain between 2.2 and 2.4 years by March 2027, given the city's pipeline of upcoming projects. Residential sales area increased 4.1 per cent to 118 msf in FY26, while sales rose 17.3 per cent year-on-year in the first quarter of FY27.
The city accounted for around 18 per cent of the total area sold across the top seven cities in FY26, making it the second-largest residential market. ICRA projects sales growth of 11-14 per cent in FY27. Western Hyderabad remained the main activity centre, with north-western and south-western corridors accounting for 85-90 per cent of sales and launches. Kokapet, Neopolis, Tellapur and Khanapur benefited from proximity to information technology hubs, connectivity and social infrastructure.
Published by HT Digital Content Services with permission from Construction World.