The real estate potential of South Delhi, one of India's poshest regions, is worth Rs 5.65 lakh crore across 42 MCD Regulated colonies, with plots (occupied and vacant) in Category A and B colonies accounting for more than Rs 5.35 lakh crore, according to a report by Golden Growth Fund (GGF), a category-II real estate focused Alternative Investment Fund.
The report states that there are roughly 18,446 plots available in the 42 Cat A, B, and C colonies in South Delhi. The plots range in size from 125 square yards to 1750 square yards, and the average price is between Rs 6 and Rs 15 lakh per square yard.
All Delhi colonies have been categorized into eight groups by the Municipal Corporation of Delhi (MCD): A, B, C, D, E, F, G, and H. These categories serve as the foundation for circle rates, property tax rates, and stamp duty fees associated with property registration.
The 13 Category A colonies have about 3704 plots available, with sizes ranging from 200 to 1200 square yards. The average cost per square yard is between Rs 7 lakh and Rs 15 lakh.
There are approximately 12,720 plots available in the 27 Category B colonies, ranging in size from 125 square yards to 1750 square yards, with an average price of Rs 6 lakh to Rs 12 lakh per square yard.
Mayfair Garden, Panchsheel Park N Block, Panchsheel Park S & E Blocks, Sadhana Enclave, Anand Niketan, Vasant Vihar, Shanti Niketan, Westend, Chankyapuri, Golf Links, JorBagh, Sundar Nagar, Maharani Bagh, Chirah Enclave, GK, Green Park, Gulmohar Park, Niti Bagh, and others are among the most popular colonies.
With fully developed surrounding infrastructure and the novelty of an iconic address, South Delhi has emerged as an ideal location for homes that provide exclusive and luxurious living experiences.
Why South Delhi?
South Delhi has long been a popular destination for wealthy homebuyers and investors. High-net-worth individuals (HNIs) and their families find the area to be a perfect place to live because of its well-developed infrastructure, which includes top-notch hospitals, schools, shopping centers, and recreational facilities.Due to the neo-rich population's constant demand for high-end housing, old buildings are frequently being redeveloped and new developments are being built on empty lots.
The wealthy class, which includes lawyers, businesspeople, and salaried professionals who like opulent floors and villas, make up the majority of the population in South Delhi. As a result, many new developments on vacant lots or redevelopments of old buildings are taking place to cater to the tastes of the neo-rich next generation and the needs of growing families. The proximity to entertainment and recreational facilities, family offices, the airport, and other social infrastructure such as schools and hospitals make it an ideal destination," said Ankur Jalan, CEO of Golden Growth Fund.
"The South Delhi real estate market is driven by consistent demand, reliable and safe investment, and substantial returns, making it the ideal location for homeownership, whether for self-stay or investment for wealth creation and income generation. The region's real estate boasts asset protection against capital depreciation.
"HNIs, NRIs, and family offices that previously invested in local properties without the protection of compliance and safety are now investing in AIFs that invest in these colonies." AIFs have opened up a new avenue for these investors, offering returns of up to 18-20% without having to worry about investment safety or property upkeep and maintenance," Jalan added.
AIFs have emerged as a transformative tool, not only channeling resources into the sector but also providing high returns to investors.
According to SEBI data up to H1FY25, the real estate sector received the most investment from AIFs, at Rs 75,500 crore, accounting for 17% of total investment.
Golden Growth Fund (GGF), a specialized AIF that focuses on real estate investments in South and Lutyens' Delhi, intends to raise Rs 400 crore from investors to develop and acquire real estate projects in the region. GGF's strategy focuses on minimizing risk while increasing returns by investing in a diverse portfolio of properties. Its first funding round in August raised Rs 25 crore, and the company has already started work on a residential project in Anand Niketan in collaboration with Grovy, a real estate development firm with over 40 years of experience.
