South Delhi continued to outperform the broader housing market, with luxury floor prices rising by up to 32% in the first quarter of 2026, defying the wider slowdown in the real estate sector triggered by the ongoing US-Iran war, according to a report by Golden Growth Fund.
According to the report, the price growth of luxury floors in South Delhi has defied the slowdown in the broader real estate market across India amidst the West Asia conflict and the residual decline from the past year.
“Category B colonies outperformed Category A colonies in price growth in Q1 2026 with the former growing between 23-32% as against 14-22% in the latter. In value terms, however, the price of floors in Category A ranges between ₹19.5 crore to ₹40 crore while that in Category B colonies ranges between ₹10.65 crore to ₹16.5 crore,” the report said.
According to the report, the price for a 2500 sq. ft. floor in Category A colonies ranges between ₹14-25 crore, with the average price rising 22% YoY. Similarly, for a 6000 sq. ft. floor, the price ranges between ₹25-55 crore with the average price rising 14% YoY.
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For Category B colonies, the price for a 2500 sq. ft. floor ranges between ₹9-12.5 crore with the average price rising 23% YoY. Similarly, the price for a 3200 sq. ft. floor ranges between ₹14-19 crore with the average price rising 32% YoY, the report said.
“Category B colonies have witnessed stronger price appreciation this quarter, reflecting 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,” said Ankur Jalan, CEO, Golden Growth Fund.
“Given the persistent high-demand and limited-supply dynamics, price growth is expected to remain resilient and relatively insulated from external market fluctuations. In fact, any broader slowdown across NCR could further strengthen buyer interest in trophy assets within South Delhi. 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,” Jalan said.
What are Category A and Category B colonies?
The report said that some of the category A colonies are Mayfair Garden, Panchsheel Park, Anand Niketan, Vasant Vihar, Shanti Niketan, Westend, Chankyapuri, Golf Links, Jor Bagh, Sundar Nagar, Maharani Bagh, among others. Further, some of the Category B colonies are Chirag enclave, Anand Lok, GK, Green Park, Gulmohar Park, Niti Bagh, Defence Colony, Safdarjung Enclave, Kailash Colony, among others.
The Municipal Corporation of Delhi (MCD) has divided all colonies of Delhi under eight categories – A, B, C, D, E, F, G and H. Circle rates, property tax rates and stamp duty charges for property registration are based on these categories. The report said that approximately 18,500 plots are available across the 42 Cat A and B colonies in South Delhi. The redevelopment potential of these colonies stands at ₹6.5 lakh crore presenting a huge opportunity for project development.
