Luxury independent floors across South Delhi’s prime colonies have seen significant appreciation this year, with prices climbing as much as 34 per cent annually, a new report by Golden Growth Fund reveals. The surge is being fuelled by a redevelopment wave, limited fresh land supply, and sustained demand from high-net-worth buyers keen to upgrade within their legacy neighbourhoods rather than relocate.

South Delhi has continued to outperform the wider market while other parts of Delhi-National Capital Region (Delhi-NCR) have shown a slowdown in price growth.

Many residents who have been occupying space in the region are choosing to redevelop their ageing properties. This owner sentiment development shows a transforming character of the region’s housing inventory while pushing the value upwards.

“South Delhi has always carried a certain legacy value, and that emotional connection is now translating into strong price momentum. The 22–34 per cent rise we are seeing is largely demand-driven–affluent families prefer staying within familiar neighbourhoods but want modern, secure, and larger homes through redevelopment,” says Pawan Gupta, CEO, Farmland Bazaar.

The biggest gains have been recorded in the city’s premium Category A colonies. This list includes some of Delhi’s prime neighbourhoods, such as Chanakyapuri, Golf Links, Jor Bagh, Shanti Niketan, Vasant Vihar, Anand Niketan and Panchsheel Park. The independent luxury floor segment in these areas saw a rise in pricing between 25 and 34 per cent last year.

The jump in price rise becomes quite clear when the current values are compared with those from 2024. A 2,500 sq ft floor in a category A colony previously sold for Rs 10-19 crore, now commands anything between Rs 14 crore and Rs 25 crore. Homes with larger floor plans, typically around 6,000 sq ft, have also appreciated significantly. From a price of Rs 19-45 crore in 2024, they now come for Rs 25-55 crore in 2025. On average, prices for smaller floors in such locations have climbed by 34 per cent, while homes larger recorded a 25 per cent rise.

Category B colonies have also witnessed strong appreciation, even though it was recorded at a more cautious and steady pace. Neighbourhoods, such as Gulmohar Park, Anand Lok, Defence Colony, Neeti Bagh, Chirag Enclave and Greater Kailash have recorded a growth of roughly 22-26 per cent. In these specified areas, a 2,500 sq ft floor increased in price from Rs 7-10 crore in 2024, to Rs 9-12.50 crore in 2025. On average, this price increase was 26 per cent for smaller units and 22 per cent for the larger ones. “With limited fresh land supply and a clear shift towards low-density, floor-wise living, pricing strength in Category A and B colonies isn’t surprising. As long as supply remains tight and end-user demand continues, south Delhi’s luxury floor market is likely to stay resilient despite broader NCR moderation,” adds Gupta.

One of the main drivers behind this price rise is the imbalance of supply and demand. South Delhi has limited land parcels for any new development to happen. A majority segment of the housing stock in south Delhi is dependent on older independent houses. Instead of relocation, landlords now prefer to redevelop these properties to unlock higher-yielding values while generating better rental income. Overall, the luxury floor segment is undergoing a major shift that is driven by redevelopment and sustained interest from high-net-worth buyers.