Delhi-NCR Records Steepest Residential Price Surge at 24% Across India's Top Seven Cities

The Delhi-NCR region has emerged as the leader in housing price appreciation among India's seven major cities, recording a remarkable 24% year-on-year increase during the July-September 2025 quarter, according to the latest report released by Anarock.

Average property prices in the region climbed from ₹7,200 per square foot in Q3 2024 to ₹8,900 per square foot during the same period in 2025, fueled by robust demand and constrained supply in key submarkets.

Housing Price Growth Across Major Indian Cities

The quarterly data revealed significant variations in price appreciation across different metropolitan regions. While the best places to live in Gurugram contributed to Delhi-NCR's stellar performance, other cities demonstrated more moderate growth trajectories.

Across these seven leading markets, the average price increase stood at 9%, rising from ₹8,390 to ₹9,105 per square foot over the year. This trend aligns with the broader pattern observed in India's real estate market performance in 2025.

Quarter-on-Quarter Analysis Suggests Stabilisation

Despite the substantial annual rise, quarter-on-quarter growth remained moderate at approximately 1%, suggesting a possible price stabilisation phase following consecutive years of steep increases. This moderation could signal a cooling period after prolonged escalation in property values.

Factors Propelling Delhi-NCR's Price Surge

Premium Segment Dominance

Buyer appetite has remained robust in high-end projects, particularly in ready-to-move flats in Noida and Greater Noida, as well as select zones in Delhi. The shift toward premium offerings has significantly influenced price movements.

Supply Constraints

New project launches in the NCR declined by 11% year-on-year, with only 12,645 units added during the quarter. This supply squeeze has created upward pressure on prices, especially in high-demand areas of Greater Noida.

Luxury Market Focus

Approximately 70% of new launches were in the luxury category, priced above ₹1.5 crore. This trend reflects developers' strategic positioning toward India's ultra-wealthy betting on luxury homes.

Rising Construction Costs

High construction costs and limited land availability have continued to push prices upward, affecting affordability across segments. Stamp duty and registration fees in Gurgaon have also contributed to the overall transaction costs.

Infrastructure Development

The completion of key metro lines and expressways has improved connectivity and pushed property values higher in emerging corridors. Gurugram's SPR corridor emergence as a prime real estate magnet exemplifies this infrastructure-driven appreciation.

Market Implications and Future Outlook

Fastest Growing, Not the Costliest

While Delhi-NCR leads in price momentum, Mumbai continues to remain India's priciest real estate market at over ₹17,000 per square foot. The distinction between affordable housing areas in Delhi-NCR and premium segments remains pronounced.

Expected Moderation Ahead

After three consecutive years of sharp escalation, industry experts predict a milder growth curve in the coming quarters. The quarter-on-quarter slowdown supports this projection.

Affordability Concerns

The focus on luxury launches could intensify the affordability crisis, particularly for first-time and mid-income buyers. Unless more balanced supply is introduced, the gap between luxury real estate market segments and affordable housing will continue to widen.