National Capital Region Records India's Steepest Residential Price Surge at 24 Per Cent in Third Quarter

The Delhi-National Capital Region has reportedly emerged as India's fastest-growing residential real estate market in terms of price appreciation, according to recent data released by property consultancy firm Anarock. The region witnessed a substantial 24 per cent year-on-year increase in housing prices during the July–September quarter of 2025, marking it as the top performer among the country's seven major metropolitan areas.

Industry sources indicated that average property rates in the region climbed from ₹7,200 per square foot in the corresponding quarter of 2024 to ₹8,900 per square foot this year. The steep rise has been attributed to sustained buyer demand combined with constrained supply in several key micro-markets across housing areas in Delhi-NCR.

Comparative Price Movement Across Seven Key Markets

Data from Anarock's third-quarter report revealed notable variations in property price growth across India's primary real estate hubs. While the National Capital Region led the rankings with a 24 per cent annual appreciation, other cities displayed more moderate gains.

Across these seven markets, the weighted average price reportedly rose by 9 per cent, moving from ₹8,390 per square foot to ₹9,105 per square foot over the twelve-month period.

Sequential Growth Indicators Point to Stabilisation Phase

Despite the sharp year-on-year increase, sequential quarter-on-quarter growth remained relatively muted at approximately 1 per cent, according to market analysts. This tempered quarterly momentum has led industry observers to suggest that the market may be entering a phase of price stabilisation following several consecutive years of steep appreciation in Delhi-NCR's luxury apartment market.

Factors Behind the Capital Region's Price Acceleration

Premium Segment Demand Remains Robust

Market participants pointed out that buyer interest has remained particularly strong in high-end residential projects, especially in emerging corridors of Noida, Gurugram, and select zones within Delhi proper. The concentration of demand in the premium category has reportedly contributed significantly to overall price increases in the region.

Supply Constraints Add Upward Pressure

New project launches in the National Capital Region reportedly declined by 11 per cent on a year-on-year basis during the quarter, with only 12,645 residential units added to the market. The supply-demand imbalance has been cited as a key driver of the price surge observed across multiple micro-markets.

Luxury Segment Dominates New Inventory

Industry data suggested that approximately 70 per cent of new launches during the quarter were positioned in the luxury category, with unit prices exceeding ₹1.5 crore. This skew towards high-value inventory has reportedly influenced average pricing trends across the region, similar to patterns observed in India's ultra-wealthy residential real estate investments.

Rising Construction Costs and Land Scarcity

Developers indicated that elevated input costs combined with limited availability of well-located land parcels have continued to exert upward pressure on property prices across the National Capital Region.

Infrastructure Development Enhances Connectivity

The completion of several key metro corridors and expressway projects has reportedly improved accessibility to previously peripheral areas, driving property valuations higher in emerging growth corridors of the region.

Market Implications and Future Outlook

Fastest Growth, But Not Highest Absolute Prices

While the National Capital Region led in terms of price appreciation velocity, Mumbai Metropolitan Region continues to hold the distinction of being India's most expensive residential market, with average rates exceeding ₹17,000 per square foot, according to the report.

Moderation Expected in Coming Quarters

After three consecutive years of substantial price escalation, market experts have indicated that a more moderate growth trajectory is likely in the near term. The sequential data showing marginal quarterly increases has been interpreted as an early indicator of this trend.

Affordability Challenges May Intensify

The pronounced focus on luxury segment launches has raised concerns about widening affordability gaps, particularly affecting first-time homebuyers and middle-income segments. Industry observers have suggested that unless a more balanced supply is introduced across price categories, the affordability crisis could intensify further. This challenge is not unique to NCR, as similar issues have been documented in affordable housing segments across Indian cities.

The residential real estate landscape in Delhi-NCR appears to be at a crucial juncture, balancing strong demand dynamics against supply constraints and evolving affordability considerations. Market participants will be closely monitoring upcoming quarters to assess whether the current trajectory of price growth will sustain or moderate in line with broader market expectations.