South Delhi’s luxury housing market continued to defy the broader slowdown in India’s real estate sector, with prices of premium builder floors rising by as much as 32 per cent year-on-year in the January-March quarter of 2026, according to a report by Golden Growth Fund (GGF).
The report said Category B colonies recorded stronger appreciation compared to Category A colonies during the quarter, reflecting growing demand for premium residential pockets beyond the traditionally dominant ultra-luxury markets.
According to the report, average prices of 2,500 sq ft floors in Category A colonies increased 22 per cent year-on-year to Rs 19.5 crore, while prices of 6,000 sq ft floors rose 14 per cent to an average of Rs 40 crore.
In Category B colonies, average prices for 2,500 sq ft floors climbed 23 per cent to Rs 10.75 crore. Meanwhile, 3,200 sq ft floors witnessed the sharpest increase, with average prices surging 32 per cent year-on-year to Rs 16.5 crore.
Ankur Jalan, CEO of Golden Growth Fund, said the stronger growth in Category B colonies highlighted the “growing depth of demand” in South Delhi’s premium housing market.
“South Delhi is far from being a uniform market, with pricing varying significantly across colonies and micro-markets. We are also seeing increasing migration of buyers from other parts of Delhi towards these locations,” Jalan said.
He added that persistent demand and limited supply were expected to keep prices resilient despite external economic pressures.
“In fact, any broader slowdown across NCR could further strengthen buyer interest in trophy assets within South Delhi,” Jalan noted.
Premium Markets Stay Resilient
The report comes at a time when the wider real estate market has been witnessing moderation amid the ongoing West Asia conflict and lingering weakness from last year’s slowdown. However, South Delhi’s luxury segment continued to attract high-net-worth buyers and investors, the report noted.
Jalan said geopolitical uncertainty could potentially drive more investments into established luxury housing destinations.
“The ongoing conflict in West Asia is creating short-term uncertainty globally, but premium residential markets like South Delhi could still emerge as beneficiaries of capital reallocation over the medium term. Wealthy Indian families and NRIs may prefer to invest in established luxury markets like South Delhi,” he said.
Some of the prominent Category A colonies mentioned in the report include Mayfair Garden, Panchsheel Park, Anand Niketan, Vasant Vihar, Chanakyapuri, Golf Links and Jor Bagh. Category B colonies include Green Park, Defence Colony, Gulmohar Park, Kailash Colony and Safdarjung Enclave.
The report estimated that around 18,500 plots are spread across 42 Category A and B colonies in South Delhi, with a redevelopment potential of nearly Rs 6.5 lakh crore. |
