Prices of South Delhi luxury independent floors up 105% in 3 yrs: Report

Investments by high-net-worth individuals, assured returns and connectivity among reasons for price jump

The prices of luxury independent-floor homes in certain South Delhi colonies have increased 64 per cent to 105 per cent in three years due to investments by high-net-worth individuals (HNIs), said a report on Friday.

 

Category A colonies such as Mayfair Garden and Panchsheel Park represent places with the highest circle rates, according to the report by Golden Growth Fund, a real-estate-focused alternate investment fund (AIF). Category B comprises colonies like Andrews Ganj and Defence Colony – places where circle rates fall between the highest (Category A) and lower categories.

 

In Category A colonies, the average price for a 2,500-square-feet floor increased almost 100 per cent in three years: from Rs 8-11 crore to Rs 16-22 crore. The price for a 6000-square-feet floor rose by 105 per cent: from Rs 18-22 crore to Rs 36-45 crore.

 

In Category B colonies, the average price for a 2,500-square-feet floor grew 70 per cent: from Rs 5-6.5 crore to Rs 8.5-11 crore. A 3,200-square-feet floor’s price increased 64 per cent: Rs 8-11 crore to Rs 13-18 crore.

 

Ankur Jalan, chief executive officer of Golden Growth Fund, said South Delhi offers privacy and customised space to ultra-rich people like startup founders. “South Delhi’s connectivity to the office hubs in Gurugram and Noida and the airport adds to its appeal. The excellent return on investment is another factor that has added to the growing interest,” he said. 

 

Experts have said that HNIs, non-resident Indians and family offices, who earlier invested in local properties without the cushion of compliance and safety, are making investments in AIFs that invest in affluent colonies.

 

Jalan said that with returns as high as 18 per cent to 20 per cent, AIFs have opened a new avenue for these investors.

 

Golden Growth’s report said South Delhi is one of India’s most premium real estate markets, with per square feet rate in a Category A colony ranging between Rs 60,000 to Rs 90,000 and in Category B colony between Rs 36,000 to Rs 56,000 depending upon floor and colony.

 

The fund previously said the redevelopment potential of South Delhi is worth Rs 5.65 trillion across 42 regulated colonies overseen by the Municipal Council of Delhi (MCD), with occupied and vacant plots in Category A and B colonies alone accounting for over Rs 5.35 trillion.

 

Jalan said that while the real estate market is bullish, South Delhi stands out for consistent demand, reliable investment and substantial returns.