Summary of this article
Registrations drop after strong 2025 growth.
Premium homes still dominate transaction value.
Mid and affordable segments gaining traction.
The residential real estate market in Hyderabad has started 2026 on measured steps. Property registrations are witnessing a year-on-year decline right after a period of strong premium-led growth in 2025. As per Knight Frank India’s latest assessment based on data from the Telangana Registration and Stamps Department, the slowdown reflects a phase of normalcy rather than a decline in demand.
Residential property registrations in Hyderabad have fallen by 14 per cent year-on-year in January 2026. Only 4,686 homes were registered in January 2026, as compared to 5,465 units registered in January 2025.
The total value of homes being registered has also declined by 16 per cent, with the numbers standing at Rs 2,917 crore from Rs 3,463 crore in the same period last year. This watered-down result was driven mainly by the slowdown in premium and high-value purchases. This was especially seen in the Rs 1 crore category of housing. This sector was the engine of growth throughout 2025; however, this sudden slowdown suggests that the market is moving towards a more balanced growth.
Premium Housing Still Drives Value
The percentage of registrations of homes above Rs 1 crore has declined by 17 per cent year on year in January. Despite the drop in registration volumes, the segment continues to be dominant in value terms. Homes priced above Rs 1 crore had accounted for almost 15 per cent of registrations, but contributed a share of 44 per cent of the transaction value. This is an indication that demand for premium housing remains strong, even if some buyers may be postponing purchases or reassessing their investment timelines. At the ticket size level, homes priced below Rs 50 lakh accounted for the largest share of registrations, rising from 60 per cent to 64 per cent year on year. Whereas, the Rs 50 lakh to Rs 1 crore segment saw the steepest drop, declining at a rate of 27 per cent on a year-on-year basis. This shift suggests the growing participation has now shifted to mid-market and affordable segments, even as the premium market holds a steady pace.
District Trends Reveal Shifting Demand Patterns
Hyderabad is a vast market to understand, with the key districts showing and suggesting different demand patterns. The four main districts in the city, Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy, had noticeable changes in activity at the district level. Medchal-Malkajgiri led the growth in the market. Accounting for 46 per cent of the total registrations. Hyderabad followed second with a contribution of 19 per cent share. While Renagareddy’s share dropped from 41 per cent to 34 per cent, which is a 27 per cent sharp decline in registration on a year-on-year basis.
Rangareddy has traditionally been the hub for high-value housing transactions, while the decline in premium purchases shows how it has impacted the overall registration volumes.
Prime areas of the city like Gachibowli, Raidurg and Kothguda remain the prime anchors in the premium demand side.
The data also highlights how the buyer preference has remained for larger homes. Properties which were sized between 1,000 and 2,000 sq ft accounted for nearly 65 per cent of registrations in the city. Whereas homes above the size of 2,000 sq ft have made up to 14 per cent of transactions. This is a reflection of buyer trends following the need for spacious homes with improved amenities.
The January slowdown is not a setback; it is a shift from rapid expansion to consolidate the residential real estate market in Hyderabad. While premium housing transactions have cooled down, the segment still commands the market in the city. As the year progresses, Hyderabad’s residential sector is expected to move forward with a steady stance and sustainable growth rate. This is also supported by evolving buyer preferences and ongoing urban development.
