Average home prices in Delhi-NCR’s primary residential market rose 12 per cent annually during the July-September quarter, the highest increase among India’s top seven cities, according to data from real estate consultant Anarock. The rise was attributed to higher input costs and developers’ increasing focus on premium housing projects.

Average residential prices in Delhi-NCR increased to Rs. 9,980 per sq ft in the quarter, from Rs. 8,900 per sq ft in the year-ago period. Across the top seven cities, average prices rose 7 per cent annually to Rs. 9,714 per sq ft, compared with Rs. 9,105 per sq ft previously.

The cities covered in the comparison were Bengaluru, Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, Chennai, Hyderabad and Kolkata. Anarock Vice Chairman Santhosh Kumar said housing prices had risen sharply across major cities since the COVID-19 pandemic, mainly because of higher land, construction and other input costs.

In Delhi-NCR, land rates in Noida, Greater Noida and Gurugram have increased significantly, as reflected in auctions conducted by local development authorities, Kumar said. He added that developers were concentrating on premium, luxury and ultra-luxury homes, a trend that has contributed to the increase in average prices.

BPTP CEO and President Manik Malik said housing demand in the National Capital Region remained steady, supported by infrastructure development, improved connectivity and employment-led demand, particularly in premium and luxury segments. M3M India President Robin Mangla said a marginal moderation in sales had not weakened the market, with well-connected micro-markets continuing to command a premium.

Alpha Corp Development CEO and Director Ashish Sarin said the September-quarter performance demonstrated the resilience of housing demand amid changing global and economic conditions. He said strong end-user demand continued to support sales, with homes increasingly viewed as a long-term requirement rather than solely as an investment avenue.