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Redevelopment push drives price growth in South Delhi housing market

By A Representative
 
Prices of independent luxury floors in South Delhi recorded a sharp year-on-year rise in 2025, increasing by up to 34 per cent in select colonies, according to a report released by Golden Growth Fund, a Category-II real estate-focused Alternative Investment Fund.
The report noted that while price growth across other NCR cities has moderated, demand in South Delhi has remained firm, driven by affluent buyers and local landowners opting for redevelopment projects that offer modern amenities, enhanced security and improved utilisation of permissible floor space index (FSI).
In Category A colonies of South Delhi, prices of independent floors rose between 25 and 34 per cent during 2025. These colonies include Chanakyapuri, Golf Links, Jor Bagh, Shanti Niketan, Vasant Vihar, Anand Niketan and Panchsheel Park. For a 2,500 sq. ft. floor in Category A areas, prices increased from Rs 10–19 crore in 2024 to Rs 14–25 crore in 2025, with the average price rising from Rs 14.5 crore to Rs 19.5 crore, marking a 34 per cent increase. A 6,000 sq. ft. floor saw prices move from Rs 19–45 crore in 2024 to Rs 25–55 crore in 2025, with the average rising 25 per cent from Rs 32 crore to Rs 40 crore.
Category B colonies registered price growth between 22 and 26 per cent, according to the report. These include Gulmohar Park, Anand Lok, Defence Colony, Neeti Bagh, Chirag Enclave and Greater Kailash. In these areas, a 2,500 sq. ft. floor rose from Rs 7–10 crore in 2024 to Rs 9–12.5 crore in 2025, with the average price increasing 26 per cent from Rs 8.5 crore to Rs 10.75 crore. A 3,200 sq. ft. floor increased from Rs 11–16 crore in 2024 to Rs 14–19 crore in 2025, reflecting a 22 per cent rise in the average price from Rs 13.5 crore to Rs 16.5 crore.
Ankur Jalan, Chief Executive Officer of Golden Growth Fund, said persistent low supply and strong demand dynamics in South Delhi have continued to support price appreciation for independent floors. He stated that redevelopment by local landowners has helped unlock higher capital values and improve rental yields, while larger and better-designed homes have strengthened buyer interest.
The report also noted that the Municipal Corporation of Delhi classifies colonies into eight categories — A to H — which determine circle rates, property tax and stamp duty. Categories A and B comprise some of the most premium localities in South Delhi. According to the fund’s estimates, the redevelopment potential across South Delhi colonies is valued at over Rs 6 lakh crore.

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