Hyderabad housing market holds steady in H1 2026; GCCs drive record office leasing

Hyderabad’s residential market remained stable in H1 2026 with modest sales growth and steady absorption in mid- and premium housing segments. Banjara Hills led price appreciation, while the city’s office market recorded its highest-ever first-half leasing volume.

Hyderabad: The city’s residential market maintained a stable performance in H1 2026, with housing demand remaining resilient despite elevated sales levels and moderating supply additions.

Housing sales stood at 19,249 units, registering a modest 1% YoY (year-on-year) growth, while launches declined marginally by 2% YoY to 20,466 units, said Knight Frank India in its latest report, India Real Estate: Residential and Office (January – June 2026) H1 2026. 

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Market health indicators remained broadly comfortable, with the overall quarters-to-sell (QTS) standing at 5.9 quarters. The Rs. 10-20 mn segment exhibited healthiest absorption among large-volume categories with a QTS of 4.5 quarters, while premium housing in the Rs. 20-50 mn bracket maintained a reasonable QTS of 5.5 quarters despite rising inventory levels.

Banjara Hills witnessed the highest residential appreciation of 7% to Rs. 14,400-16,020 per sq ft. The average residential prices increased by 7% YoY to Rs. 8,258 per sq ft.

Meanwhile, Knight Frank India report cited that the convergence of structural demand drivers, and several large transactions that were under evaluation over the past few quarters culminated during H1 2026; resulted in the highest first-half leasing volume recorded in Hyderabad’s office market.

The city recorded transaction volume of 7.5 mn sq ft during H1 2026, increased by 29% YoY from 5.9 mn sq ft in H1 2025. Average transacted rent increased by 7% to Rs. 80 per sq ft per month.

Global Capability Centres (GCCs) remained the largest occupier group in Hyderabad during H1 2026 with space absorption of 3.4 mn sq ft, accounting for 45% of total office leasing, up from 40% a year ago.

Hyderabad is the second-largest GCC oriented leased office market in the country. Office completions recorded a strong supply of 3.0 mn sq ft in H1 2026. Despite the substantial supply infusion, vacancy levels continued to tighten, declining by 296 basis points YoY to 11.5%, reflecting Hyderabad’s healthy demand-supply dynamics.