(MENAFN- IANS) New Delhi, Oct 13 (IANS) Driven by stable economic conditions, reduced inventory risk, and strong end-user demand, average residential prices in the Delhi-NCR region surged by 19 per cent (on-year) in the July-September period (Q3 2025), marking the highest increase among the top Indian cities, a report showed on Monday.

The Delhi-NCR residential market was the star performer in terms of price growth during the third quarter of 2025, according to Knight Frank India's report. This robust growth reflects the sustained high demand for premium and luxury properties, particularly in established micro-markets across Gurugram and Noida.

The trend of premiumisation continues to reshape the market, with home buyers demonstrating a strong preference for larger homes, better amenities, and ready-to-move-in or near-completion inventory.

While overall sales volume saw stabilisation after previous high-growth phases, the underlying sales value of transactions continued to climb, reinforcing buyer confidence and developer focus on high-ticket launches.

"This growth is healthy, not speculative, as it is backed by genuine end-user confidence and a diminishing supply of quality inventory. The high-value segment continues to lead the way, affirming NCR's status as a high-growth residential investment destination in India,” said Mudassir Zaidi, Executive Director – North, Knight Frank India.

While overall pan-India leasing volumes saw a marginal softening compared to the exceptional performance in Q3 2024, Delhi-NCR continued to attract steady demand.

Gross leasing was primarily fuelled by sustained space take-up from Global Capability Centres (GCCs) and domestic corporate expansion plans across BFSI and consulting sectors.

The sustained occupier interest, coupled with a focus on high-quality, Grade A supply, kept upward pressure on rentals. NCR recorded a positive 9 per cent YoY growth in average office rentals during the quarter.

Micro-markets in Gurugram, such as Cyber City and Golf Course Road, along with prime locations in Noida, remained the key drivers of activity, benefiting from limited new supply and high occupancy levels in established assets, the report noted. The city also saw 1.5 million square feet of new office space delivered during the quarter, marking a significant 42 per cent growth in completions.

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