Hyderabad has emerged as the city with the highest residential real estate inventory overhang among India’s top seven cities in 2024. According to Anarock Research, the branded residential inventory overhang in Hyderabad stood at 19 months, surpassing the national average of 14 months, the lowest in the last decade. Chennai followed with 17 months, while Delhi NCR and Kolkata recorded 16 months each. Bengaluru maintained the lowest inventory overhang at eight months during the first nine months of the year, reflecting its robust demand-supply equilibrium.
The tepid new housing supply across Indian cities in 2024 stemmed from election-related delays in project approvals. Compared to the record-setting launches in 2023, developers faced slowdowns during both the general elections in the year’s first half and state elections in the latter half. Of the 253 million sq ft of new housing supply planned for FY25 by the top 11 listed developers, only 23%, or approximately 57 million sq ft, were introduced in the market during H1 FY25. However, with elections concluded, experts anticipate a surge in housing supply in 2025 as developers clear backlogs and expedite approvals.
Hyderabad’s unsold inventory declined marginally over the last two years, reducing by just two months, compared to Bengaluru’s six-month drop over the same period. Hyderabad’s rapid urbanisation and significant new supply additions, however, have kept its overhang elevated. The city’s residential market has been buoyed by branded developers catering to rising demand for premium housing, but the supply has outpaced absorption.
Sustainability concerns loom large amid Hyderabad’s real estate expansion. With burgeoning urbanisation, there is a growing need for green-certified projects and infrastructure upgrades. Developers are increasingly embracing eco-friendly designs, but civic issues, including water scarcity and traffic congestion, remain unaddressed. Integrating sustainable practices with urban planning will be critical to balancing growth and liveability.
