South Delhi property prices are way above what anyone would imagine, if one was coming from a world class city to India. And they often say it is all over hyped and over priced and that one could get a mansion in the US or UK for this same price. And I am sure that’s true. But what they have missed is the fact that prices are decided by the willingness of buyers to pay a certain amount in exchange for the product.
South Delhi in relation to any place else in North India has the best mix of everything (yes yes too much pollution too). One can compare South Delhi only to areas which could be an alternate to it which mainly are other parts of Delhi, Gurgaon, Noida, Ghaziabad, UP, Punjab etc in general. The culture of South Delhi is more refined compared to all other areas, the security is the best in India (despite whatever media will scream to high heaven when something goes wrong), and it is the centre for India. The “who’s who” wants to be in Delhi. And Delhites want a South Delhi address. Land is so scarce that one is absolutely sure that the supply cannot increase drastically (actually not even minimally).
People are willing to pay a lot more for South Delhi compared to any other place in North India. And South Delhi is still much cheaper than Mumbai. Frankly, better properties are being developed in Gurgaon than South Delhi but still Gurgaon is compared to South Delhi in a way that one would say “If I was to pay so much, I would have bought in South Delhi.”
So basically it is a lot more money chasing a few houses and builder floors and so the high prices. Can one get a better standard of living elsewhere for lesser? Absolutely. But the question to ask is “Can he live elsewhere than South Delhi?”
Hope this helped.