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Hyderabad's residential market held steady through the first half of 2026, with home sales inching up 1 percent year-on-year to 19,249 units even as new launches slipped 2 percent, according to Knight Frank India. Property prices rose 7 percent on average, led by Banjara Hills. Meanwhile, the city's office market outperformed, recording its best-ever first-half leasing volume at 7.5 million sq ft, a 29 percent jump, driven largely by Global Capability Centres. Vacancy levels tightened despite fresh supply entering the market.
Hyderabad's property market showed resilience through the first six months of 2026, holding its ground even as supply additions slowed down. Homebuyers in the city picked up 19,249 units between January and June, a modest 1 percent rise compared to the same period last year, according to Knight Frank India's latest report titled "India Real Estate: Residential and Office H1 2026." New project launches, on the other hand, moved in the opposite direction, dipping 2 percent year-on-year to 20,466 units.
The report pointed to comfortable market health overall, with the quarters-to-sell (QTS) metric which measures how quickly unsold inventory is likely to be absorbed standing at 5.9 quarters for the city as a whole. Among higher-value housing categories, homes priced between INR 10 million and INR 20 million sold the fastest, recording a QTS of 4.5 quarters. Premium housing priced between INR 20 million and INR 50 million also held up reasonably well, with a QTS of 5.5 quarters, even as inventory in that bracket continued to build up.
Property prices in Hyderabad kept climbing, rising 7 percent year-on-year on average to INR 8,258 per sq ft. Banjara Hills emerged as the strongest performer, posting the sharpest appreciation in the city at 7 percent, with rates there now ranging between INR 14,400 and INR 16,020 per sq ft. This price momentum is consistent with an earlier report by JLL, which had noted Hyderabad recording 8 percent year-on-year price appreciation in the January-March quarter, suggesting the city's upward pricing trend has been building for a while now.
Separately, data from ANAROCK for the April-June quarter had shown Hyderabad's home sales at 11,270 units, up 2 percent year-on-year but down 9 percent from the previous quarter. That report had also flagged that more than 82 percent of new launches in the city during the quarter fell within the INR 80 lakh to INR 2.5 crore price bracket, indicating that developers have been leaning heavily into the mid-to-premium segment rather than affordable housing.
While the residential segment posted only marginal gains, Hyderabad's commercial office market had a considerably stronger run. The city recorded its highest-ever first-half leasing volume, with transactions touching 7.5 million sq ft during H1 2026, up 29 percent from 5.9 million sq ft logged in the same period last year. Knight Frank attributed this jump to a build-up of large deals that had been under evaluation over previous quarters, many of which were finalised within this period. Average rents rose in step, climbing 7 percent to INR 80 per sq ft per month.
Global Capability Centres continued to dominate office space uptake in the city, accounting for 3.4 million sq ft, or 45 percent of total leasing activity, up from 40 percent a year earlier. This keeps Hyderabad positioned as the second-largest GCC-driven office market in the country. Fresh office supply was also healthy, with 3 million sq ft of new space completed during the half. Despite this addition to stock, vacancy levels actually tightened, falling by 296 basis points year-on-year to 11.5 percent, pointing to demand keeping pace with, and in some pockets outstripping, new supply.
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