Soaring property prices crush housing hopes in Capital
For most home seekers, New Delhi, the city of dreams, remains precisely that – a city of dreams with the property market getting increasingly out of reach.
Rising demand, soaring cost of constitution, never-ending equated monthly instalments (EMIs) and the demand-supply gap are pushing home seekers to the wall.
“I paid 75% upfront and took a home loan for the rest. Without EMIs or family support, owning a home here is nearly impossible,” says Chitresh Mishra, who recently purchased a floor in Bhavani Kunj area of Vasant Kunj in New Delhi.
He pointed to how property prices are rising every month, making it harder to keep up. Like many aspiring homeowners in Delhi, Mishra found the rising property prices a major hurdle in the path of realising his dream, favourable interest rates starting from 7.90% per annum, notwithstanding.
Another Delhi-based house seeker, requesting anonymity, echoed the sentiment, “I’ve been checking out properties lately. Any decent flat or independent floor now starts at Rs 2-2.5 crore. That’s massive for a salaried person like me. For middle class and young working families, owning a house in Delhi is increasingly out of reach.”
The frustration is reflected in the markets. Delhi-NCR is witnessing a sharp rise in property prices and rentals, leaving affordable housing out of reach for a large section of buyers.
Data from Anarock Group, a real estate services company, shows that residential prices in the region have risen by 81% over the last five years.
Luxury housing has expanded across Sundar Nagar, Jor Bagh, Golf Links, Defence Colony and Vasant Vihar, where average property values are upwards of Rs 8 crore.
In contrast, middle-income buyers are being pushed further to the periphery. According to a report by real estate firm JLL India earlier this year, housing sales across India’s top seven cities fell by 12% in the first quarter of 2025, declining from 74,486 units in the same period last year to 65,246 units, signalling weaker buyer activity compared to the previous quarter.
Alok Kumar, a property dealer based in Noida, said, “A standard two-bedroom apartment that sold for about Rs 60 lakh three years ago is now priced close to Rs 1 crore. Even low-income group flats, once available for Rs 30-40 lakh, are being quoted at Rs 1.5-2 crore. Rentals have nearly doubled too, with two-bedroom flats that earlier fetched Rs 10,000 a month now costing around Rs 18,000. Demand is strong because of IT companies and better Metro connectivity, but it is pushing families out. Many flats are being shared by groups of bachelors now.”
In South Delhi, property rates have surged further. Sumit, a South Delhi property dealer, said: “A 200 sq yard floor in a prime sector costs around Rs 8 crore. People come with Rs 2-crore budget, but expect properties worth Rs 4 crore.”
Siddharth, a Noida-based broker, offered a contrasting perspective. “For a 200 sq yard floor in Delhi, prices range between Rs 5 and Rs 6 crore. A broker might say Rs 8 crore, but that’s usually exaggerated or includes commission. In Noida, depending on the sector and the builder, a 150 sq meter plot can cost Rs 3-4 crore. Luxury apartments in Noida or Greater Noida can go up to Rs 6-7 crore,” said Siddharth.
Even those who manage to buy are relying heavily on loans. Farukh Shamim, formerly with SBI’s loans department, confirmed the trend: “The home loan portfolio is on a rising trend. More people are seeking loans because property rates are increasing. Defaults mainly happen if someone loses their job or has bought a property from a private builder that hasn’t been handed over yet. Then they are paying EMIs and rent at the same time.”
Developers attribute the rise to structural cost pressures. Anil Kant, a Delhi-based builder, said, “Land costs, compliance charges, cement, steel and labour have gone up 30-40% in five years. Developers pass these costs on. Affordable housing is shrinking because margins are better in premium projects.”
With Central and South Delhi becoming unaffordable, families are relocating to peripheral areas like Greater Noida and Ghaziabad. Siddharth noted, “In Greater Noida, rental rates for a three-bedroom flat are Rs 20,000-25,000, compared to Rs 30,000–35,000 in Noida. People are moving there to find homes they can afford.”
Delhi