South Delhi's Real Estate: A Luxurious Investment Worth Rs 5.65 Lakh Crore
South Delhi, one of India’s most prestigious regions, has a real estate potential worth Rs 5.65 lakh crore. The value is primarily driven by the luxurious and exclusive plots in Category A and B colonies, according to a report by Golden Growth Fund (GGF).
Real Estate Mumbai: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. The plots in Category A & B colonies alone account for over Rs 5.35 lakh crore, according to a report by Golden Growth Fund (GGF), a category-II real estate-focused Alternative Investment Fund.
As per the report, around 18,446 plots are available across the 42 Category A, B & C colonies in South Delhi. These plots range in size from 125 sq. yd. to 1750 sq. yd. and are priced from Rs 6 lakh to Rs 15 lakh per sq. yd. The Municipal Corporation of Delhi (MCD) has categorized all colonies of Delhi into eight categories A, B, C, D, E, F, G & H. The circle rates, property tax rates, and stamp duty charges for property registration are based on these categories. Category A and B are the most exclusive locations, primarily located in South Delhi.
In the 13 Category A colonies, around 3704 plots are available. These plots range in size from 200 sq. yd. to 1200 sq. yd. and are priced from Rs 7 lakh to Rs 15 lakh per sq. yd. In the 27 Category B colonies, around 12,720 plots are available. These plots range in size from 125 sq. yd. to 1750 sq. yd. and are priced from Rs 6 lakh to Rs 12 lakh per sq. yd.
Some of the Category-A and B colonies include 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, and Niti Bagh.
With fully-developed surrounding infrastructure and the novelty of an iconic address, South Delhi has become an ideal location for homes that offer exclusive and luxurious living experiences. Ankur Jalan, CEO of Golden Growth Fund, said, “South Delhi is predominantly inhabited by the wealthy class, comprising businessmen, lawyers, and salaried professionals with a taste for luxurious floors and villas. As a result, a lot of new developments on vacant plots or redevelopment of old buildings are being undertaken to suit the taste of the neo-rich next-Gen and cater to the needs of growing families. The accessibility to entertainment and recreational facilities, family offices, the airport, and other social infrastructure like schools and hospitals make it an ideal destination.”
Consistent demand, reliable and safe investment, and substantial returns are the factors driving the South Delhi real estate market. These factors make it the most perfect location for homeownership, either for self-stay or investment for wealth creation and income generation. The real estate in the region boasts of safety of the asset against depreciation of capital.
“HNIs, NRIs, and family offices, who earlier invested in local properties without the cushion of compliance and safety, are making investments in AIFs that invest in these colonies. With returns as high as 18-20% without having to worry about the safety of investment and property upkeep and maintenance, AIFs have opened a new avenue for these investors,” Jalan added.
AIFs have emerged as a transformative tool by not just channeling resources into the sector but also generating high returns for investors. The recent data from SEBI indicates that the real estate sector attracted Rs 75,500-crore investment from AIFs, the highest among all sectors, accounting for 17% share.
Frequently Asked Questions
What is the total real estate potential of South Delhi?
The real estate potential of South Delhi is worth Rs 5.65 lakh crore across 42 MCD-regulated colonies, with plots in Category A & B colonies accounting for over Rs 5.35 lakh crore.
How are the plots categorized in South Delhi?
The plots in South Delhi are categorized into eight categories: A, B, C, D, E, F, G & H. Category A and B are the most exclusive locations, primarily located in South Delhi.
What are some of the exclusive Category-A and B colonies in South Delhi?
Some of the Category-A and B colonies include Mayfair Garden, Panchsheel Park N Block, Sadhana Enclave, Anand Niketan, Vasant Vihar, and Chankyapuri.
What are the key factors driving the South Delhi real estate market?
The key factors driving the South Delhi real estate market include consistent demand, reliable and safe investment, substantial returns, and the safety of the asset against depreciation of capital.
What is the role of AIFs in the South Delhi real estate market?
AIFs have emerged as a transformative tool by channeling resources into the sector and generating high returns for investors. They offer returns as high as 18-20% without the worry of investment safety and property upkeep.