Home to India’s president and myriad prominent business people, the leafy Lutyens Bungalow Zone in the country’s capital city is one of the world’s most exclusive enclaves.

Boundaries

Lutyens Bungalow Zone (LBZ) refers to the imperial capital of New Delhi, explained Arnav Choudhury, senior vice president and global real estate adviser of North India Sotheby's International Realty. "It was designed by Sir Edwin Landseer Lutyens, a British architect, in 1912 for the national Capital of British India and inaugurated in 1932," Mr. Choudhury said.

LBZ is surrounded by green space and bordered by Ashoka Road and the Bengali Market to the north; Nehru Park to south; Delhi Ridge to the west; and the Delhi Golf Club to the east.

Price range

Your finances will need to be in order to even consider buying a property in LBZ. Described as a "Category A" location by Mr. Choudhury, LBZ has what’s known as a "circle rate"—a minimum value for the sale or transfer of a plot, house, apartment or a commercial property. That rate is INR 774,000 (US$11,381) per square meter, or INR 650,420 (US$9,564) per square yard.

The prices of an individual family home in LBZ varies according to the location, size of the plot, square footage of the structure height and the availability of a clear title without any legal issues binding.

The prices can range from INR 2 billion (US$29 million) for a bungalow on a plot of 0.5 acre to INR 5 billion (US$73 million) for bungalow on a plot size of one acre and above. For apartments within a gated complex, the range can start from INR 10 million (US$1.45 Million) for a 1,200 square feet three-bedroom.

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Housing stock

British Colonial architecture and unusually large plot sizes for the city (half an acre and up) are the hallmarks of the LBZ. "The original bungalows were designed by W.H. Nicholls, C.G. Blomfield, F.B.Blomfield, Walter Sykes George, Arthur Gordon Shoosmith and Henry Medd—all well known architects from Great Britain," Mr. Choudhury said.

Most of the original bungalows are still there, he said. "Others have been remodeled into modern stately homes, but they still retain the original colonial characteristics. The large plot size of these bungalows makes it one of most sought after residential areas."

What makes it unique

This heritage zone is in central New Delhi, where the main seat of government is located, along with the homes of government officials and some of India’s most prominent and high-net-worth families.

Government offices and residences include the Rashtrapati Bhawan (President House), Parliament House, India Gate (War Memorial ), Supreme Court of India, Delhi High Court and the Prime Minister’s Office.

Luxe amenities in the neighborhood Residents in the LBZ need not venture outside of their upscale confines to shop or dine. The area boasts the renowned Khan market, an indoor two-story market with 150 shops, and luxury hotels with destination restaurants, spas and boutiques.

Top tables at hotels include Dhaba in the Claridges Hotel, Bukhara at the ITC Maurya Hotel and Spice Route at the Imperial Hotel. Shoppers frequent Chanel New Delhi in the Hotel Imperial, Longines boutique in Connaught Place, and Bentley New Delhi in the Hotel Samrat. Book a massage at the Amatrra spa in the Ashok Hotel.

There are also several exclusive schools such as the American Embassy School, the British School and the German School.

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Who lives there?

High-profile neighbors such as government officials, including the president and prime minister of India, and India’s elite live in LBZ. "These are mostly local buyers, because per current regulations, it’s difficult for a foreign individual investor to buy residential properties in India," Mr. Choudhury noted.

The rules for foreign buyers acquiring property in India are complicated, but to legally purchase property in India without permission of the Reserve Bank of India, a foreigner has to be a resident (unless they’re getting the property via inheritance). A special visa is necessary, as well, for buying property in the country.

Notable residents Mr. Choudhury name-checked prominent locals, mentioning India’s President Pranab Mukherjee and Prime Minister Narendra Modi. Along with KP Singh of DLF (a leading real estate developer), Sunil Bharti Mittal (owner of the Bharti Group of Industries) and Subhas Chandra (owner of Media Company Essel Group).

"A very notable past resident was Mr. J.R.D. Tata (the former chairman of TATA Son) who had a bungalow in Aurangzeb Road, and it’s now converted into the luxury residential condominium TATA Apartments," he said.

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Outlook

As one of the most desirable areas in New Delhi, the neighborhood’s resale outlook remains strong. "As supply is limited, the price continues to hold and any prime residential plot (prime defined as specific location, plot size and built-up available) will be able to achieve a premium pricing," Mr. Choudhury said.

In 2015, the Delhi Urban Art Commission (DUAC) proposed changes to building rules in the LBZ, which if implemented, will allow for taller and larger properties, said Mr. Choudhury.

But given the limited availability of space and current building width and height restrictions, LBZ is, for now, likely to remain largely as it is, which is exactly how the residents like it.