A surprising shift in the real estate pulse. In a country witnessing a vibrant rebound in the housing market, Hyderabad—a city once hailed as a property hotspot—is now painting a different picture. As other metros bask in the glow of a revived demand, Hyderabad’s residential segment, especially in affordable and luxury housing, is seeing a sharp uptick in unsold inventory. A recent report by Anarock, a leading real estate consultancy, highlights that Hyderabad is the only major metro to record an increase in unsold housing stock between Q1 2024 and Q1 2025. Affordable housing faces headwinds in Hyderabad. Across India, the affordable housing sector—defined as units priced under ₹40 lakh—has made a noteworthy recovery. The nationwide unsold inventory fell by 19%, dropping from 1.40 lakh units in Q1 2024 to 1.13 lakh units in Q1 2025. Leading the charge were Bengaluru, with a dramatic 51% decline; Chennai, which saw a 44% drop. Other key metros like Pune, NCR, MMR, and Kolkata also showed reductions between 11% and 28%. However, Hyderabad defied this national trend. The city witnessed a 9% increase in unsold affordable units—from 1,660 in Q1 2024 to 1,815 in Q1 2025. This unexpected rise signals a possible market mismatch, or perhaps a dip in demand, despite the broader optimism across the sector. Luxury housing: mixed signals across cities. The story in the luxury housing space (typically priced ₹1.5 crore and above) was equally diverse. Chennai and Pune emerged as the only metros where unsold luxury stock declined—by 4% and 11%, respectively. In contrast, cities such as Hyderabad, MMR, NCR, Kolkata, and even Bengaluru reported a rise. Hyderabad recorded a 6% increase in unsold luxury homes, suggesting that supply may be outpacing actual high-end buyer interest. The lingering shadow of the pandemic. According to Anuj Puri, Chairman of Anarock Group, the affordable housing sector has borne the brunt of the pandemic’s aftermath. Its share in sales dropped dramatically—from 38% in 2019 to just 18% in 2024. Likewise, its contribution to overall supply fell from 40% to 16%. “A 19% dip in unsold inventory across India suggests that end-user demand remains resilient,” said Puri. Yet, Hyderabad’s contrarian trajectory raises questions about the city’s pricing strategy, consumer sentiment, or possibly over-ambitious development in both ends of the market. City-wise breakdown: affordable housing inventory (Q1 2024 – Q1 2025). NCR: 32,189 to 25,105 (-22%). MMR: 60,783 to 53,942 (-11%). Bengaluru: 6,736 to 3,323 (-51%). Pune: 20,522 to 14,686 (-28%). Hyderabad: 1,660 to 1,815 (+9%). Chennai: 1,946 to 1,090 (-44%). Kolkata: 16,069 to 12,783 (-20%). What lies ahead for Hyderabad’s housing market? With the national real estate market seemingly back on track, Hyderabad’s divergence presents a curious case. Whether it's temporary or a signal of deeper systemic issues remains to be seen. However, developers and investors alike may need to revisit their strategies to align with actual buyer sentiment in the region.