HYDERABAD: Uncertainty in the information technology sector, geopolitical tensions in West Asia, fears of an economic slowdown and steep increases in property prices have slowed apartment sales across Hyderabad.
Industry estimates suggest that more than 80,000 flats remain unsold across projects in the Greater Hyderabad region, with their combined value exceeding ₹1 lakh crore.
A software employee living in Manikonda, identified here as Bhaskar , illustrates the challenges facing homebuyers. With an annual salary package of more than ₹48 lakh, he booked a three-bedroom flat in a project at Puppalaguda in November 2024 for ₹1.10 crore. The developer promised delivery by August 2025.
Bhaskar paid about ₹40 lakh and planned to finance the balance through a bank loan. However, he lost his job in March following layoffs at his company and has not secured new employment. The bank declined to sanction a loan, and the developer refused to cancel the booking and refund the amount paid. Instead, the company allowed him to transfer the booking to another buyer.
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Homebuyers Face Market Slowdown
Bhaskar now visits the project office regularly in an attempt to find a buyer for the flat. He said the developer has increased the flat price by another ₹3 lakh, yet he has been unable to find a purchaser even at the original booking price.
Real estate professionals say sales have slowed because developers launched projects on a scale that exceeded demand. Earlier, more than 90% of flats in a project would typically be sold by the time construction was completed. Now, several completed projects continue to hold unsold inventory months after completion.
According to estimates, more than 80,000 flats remain unsold across projects of various sizes in Greater Hyderabad.
Large Supply Creates Inventory Pressure
Over the past five years, high-rise apartment complexes and gated communities have expanded rapidly across areas such as Kokapet, Narsingi, Financial District, Tellapur, Kollur, Patancheru, Bachupally, Miyapur, Puppalaguda, Nanakramguda and Gopanpally.
Market observers say high prices, weaker investor sentiment and slower demand have left thousands of flats unsold in several projects. Even completed apartments in areas including Puppalaguda, Manikonda, Kondapur, Miyapur, Ameenpur, Tellapur, Nizampet, Bachupally, Kompally, Uppal, LB Nagar and Adibatla have remained vacant for months.
Investors Return to Resale Market
The report notes that Hyderabad's property market remained resilient through demonetisation and the Covid-19 pandemic, attracting investors from India and abroad. Developers responded by launching large projects, many of which exceeded actual demand.
Industry observers say some builders created perceptions of scarcity through "sold out" campaigns, contributing to rapid price escalation. Many buyers purchased flats as investments rather than for self-occupation.
The impact of rising prices, layoffs in the information technology sector, the Russia-Ukraine conflict and ongoing geopolitical tensions has since weakened demand. Investors who bought flats for appreciation are now attempting to sell, increasing pressure on the resale market.
According to available estimates, more than 800 approved projects exist within the Greater Hyderabad Municipal Corporation and Hyderabad Metropolitan Development Authority limits. Of about 5.3 lakh flats in these projects, nearly 4.5 lakh have reportedly been sold, leaving more than 80,000 units unsold.
Market Remains Stable, Say Developers
Real estate experts say prices and transaction volumes across Hyderabad, Rangareddy and Medchal-Malkajgiri districts have remained broadly stable over the past six months. They attribute current inventory pressures to supply exceeding demand rather than a market collapse.
Real estate developers' associations maintain that Hyderabad has not entered a slowdown phase and continues to perform better than several other metropolitan cities in India.