The Real Estate Value of South Delhi Surges to Rs 5.65 Lakh Crore: Insights
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Synopsis
According to a recent report, South Delhi's real estate potential has skyrocketed to an impressive Rs 5.65 lakh crore, positioning the area as a prime choice for luxurious living. This growth is attributed to significant investments in both Category A and B colonies.
Key Takeaways
- South Delhi's real estate is valued at Rs 5.65 lakh crore.
- 13 Category A colonies contribute Rs 2.14 lakh crore.
- 27 Category B colonies amount to Rs 3.21 lakh crore.
- Average plot prices range from Rs 6-15 lakh per square yard.
- Investment in AIFs has surged in the real estate sector.
New Delhi, Feb 26 (NationPress) The estimated real estate value of South Delhi, recognized as one of the most affluent areas in India, has reached a staggering Rs 5.65 lakh crore — making it a prime destination for residences that promise exclusive and luxurious living environments, as per a report released on Wednesday.
The real estate potential of 13 Category-A colonies in South Delhi is calculated at Rs 2.14 lakh crore, representing almost 40 percent of the total, according to findings by Golden Growth Fund (GGF), a Category-II real estate-focused Alternative Investment Fund.
In addition, the real estate potential of 27 Category-B colonies is valued at Rs 3.21 lakh crore, contributing nearly 60 percent to the overall estimate.
The average cost of land in Category A colonies fluctuates between Rs 7-15 lakh per square yard, while Category B colonies see prices of Rs 6-12 lakh per square yard.
The report indicates that approximately 18,446 plots are available across the 42 Category A, B, and C colonies in South Delhi, with sizes ranging from 125 sq. yd. to 1750 sq. yd. at an average price of Rs 6-15 lakh per sq. yd.
The Municipal Corporation of Delhi (MCD) classifies all colonies in Delhi into eight categories: A, B, C, D, E, F, G, and H.
Categories A and B are regarded as the most prestigious areas, situated in South Delhi. Property registration costs, including circle rates, property tax, and stamp duty, are determined based on these classifications.
Within the 13 Category A colonies, there are around 3,704 plots available, with sizes ranging from 200 sq. yd. to 1,200 sq. yd. priced at an average of Rs 7 lakh to Rs 15 lakh per sq. yd.
In the 27 Category B colonies, roughly 12,720 plots can be found, with sizes from 125 sq. yd. to 1,750 sq. yd. and average prices ranging from Rs 6 lakh to Rs 12 lakh per sq. yd., as detailed in the report.
As noted by Ankur Jalan, CEO of Golden Growth Fund, South Delhi is largely populated by affluent individuals, including businessmen, lawyers, and salaried professionals who appreciate luxurious residences such as flats and villas.
High Net-worth Individuals (HNIs), Non-Resident Indians (NRIs), and family offices, who previously invested in local properties without adequate compliance and security, are now channeling their investments into alternative investment funds (AIFs) that focus on these colonies.
Recent statistics from SEBI reveal that the real estate sector has attracted Rs 75,500 crore in investments from AIFs, marking the highest investment across all sectors and accounting for 17 percent of the total.
“With returns reaching 18-20 percent without the need to manage the safety of investments and property maintenance, AIFs have created new investment opportunities,” Jalan remarked.
