South Delhi Luxury Homes Soar: Prices Up 34% Amid Land Scarcity

• Home prices in South Delhi's posh colonies are surging due to land scarcity, with a 34% year-on-year increase in 2025 for independent luxury floors.
• A 30-year-old bungalow in Defence Colony is being redeveloped into four luxury floors, with one 3,200 sq. ft. unit now asking nearly ₹19 crore, up from ₹16 crore a year ago.
• Category A colonies like Chanakyapuri and Vasant Vihar saw average prices for 2,500 sq. ft. floors jump 34% to ₹19.5 crore, while Category B colonies experienced 22-26% growth.
• The market is driven by end-users, including business owners and professionals, and intra-city migration from West and Central Delhi, attracted by established social infrastructure.
• South Delhi's land-constrained nature and redevelopment of old homes into luxury builder floors, coupled with limited supply, are key factors sustaining price growth.