Hyderabad Witnesses Rise in Unsold Affordable Housing Stock as Other Cities See Decline

The real estate market in Hyderabad is witnessing a contrasting trend compared to other top Indian cities, as the stock of unsold affordable residential properties has seen a notable increase in Q1 2025.

According to recent data, while unsold affordable housing inventory in major cities like NCR, MMR, Bangalore, Pune, Chennai, and Kolkata has declined, Hyderabad recorded a 9% increase. The number of unsold units in the city rose from 1,660 units at the end of Q1 2024 to 1,815 units by Q1 2025. In contrast, cities like Bangalore and Chennai saw sharp declines of 51% and 44% respectively, signaling robust demand in those regions.

Affordable Housing Segment Sees National Recovery

On a broader scale, the top seven Indian cities saw a 19% reduction in unsold affordable housing stock, declining from 1.40 lakh units to 1.13 lakh units within a year. This trend indicates a revival in end-user interest and a rebound in demand for affordable homes—especially as the market recovers from the pandemic’s impact.

Following are the city-wise dynamics:

Anuj Puri, Chairman of ANAROCK Group, emphasized that affordable housing was hit hardest during the pandemic years. Its share in overall sales fell from 38% in 2019 to 18% in 2024, and new supply also dropped significantly. However, the recent reduction in unsold stock suggests that the market is regaining momentum—driven primarily by genuine homebuyers rather than speculative investors.

Hyderabad's Rise Points to Local Demand Challenges

Despite the positive national outlook, Hyderabad’s rising unsold inventory could hint at comparatively sluggish demand in the affordable housing segment. Factors such as oversupply, mismatch between pricing and buyer expectations, or shifting buyer preferences might be contributing to the growing stock.

As other cities clear their inventory and meet growing demand, Hyderabad’s developers may need to reassess their pricing, product mix, or location strategies to align better with market needs.