Summary of this article
Hyderabad sales rise despite national decline
Premium housing drives market resilience
Property prices increase amid steady demand
In India, residential sales have declined on a year-over-year basis by 4 per cent to 84,827 residential units in Q1 2026 compared to Q1 2025. According to a Knight Frank report, a city-wise breakdown shows how Hyderabad moved against this downward trend. The city recorded a total of 9,541 housing sales during the January-March period, which was the first quarter of the year. When compared with the data from Q1 2025, the sales have increased by 1 per cent, and can be seen as an improvement when housing sales across the top eight cities in India have declined. This reinforces the buyer's confidence in this specific market.
The highlight of Q1 2026 was the continued rise in property prices. The average residential price in Hyderabad increased by 9 per cent on a year-on-year basis. This changes the property prices to the rate per square foot to Rs 8,211. Reflecting a continuous, sustained demand and a development in buyer preferences. This shows that the housing market has remained fundamentally strong despite the global uncertainties and geopolitical tensions.
The data indicates a clear shift towards the premium housing; homes that are priced between Rs 1 crore and Rs 2 crore have emerged as the dominant players in this segment. This segment has accounted for 43 per cent of the total sales, which makes the premium segment the primary driver behind this growth. The segment ranging between Rs 2 crore to Rs 5 crore and Rs 5 crore to Rs 10 crore categories have recorded a healthy traction, which underscores the growing attraction towards the high-value properties. On the other hand, affordable housing segments have witnessed a decline in demand.
This trend is not just limited to Hyderabad; it can be seen across India. The sales of homes priced above Rs 1 crore have grown by 11 per cent on a year-on-year basis, while the lower-priced segment has seen a tight concentration. In Hyderabad, this shift has, however, helped sustain the market performance, even as other major cities in the country, such as Mumbai, Delhi-NCR, and Pune, have experienced sharp declines in sales volumes.
Acknowledging the supply, developers have launched nearly 9,975 new units to the housing segment in Q1 2026. This indicates their undisturbed confidence in the market’s long-term performance. Across the country, the comparison between Q1 2025 and Q1 2026 reveals a different residential market in transition.
