( CNN ) -- It 's one of the fastest growing cities in the world situated in one of the most rapidly developing nations . Every year , roughly 200,000 newcomers arrive in the Indian capital of New Delhi . Some head to the city 's sprawling informal slums while others land in more upmarket residential areas . This vast influx of people has contributed to a chaotic urban scene , a burgeoning population of almost 13 million people and a boom at the higher end of the city 's housing market . Around 50 years ago , residents in neighborhoods like Lutyens in south Delhi 's leafy inner suburbs paid rents of just $ 5 per month . Today , this same area hosts properties that market for $ 100 million each . Nearby districts such as Lajpat Nagar ( where a two-bedroom house sells for $ 300,000 ) and Nizamuddin ( where a similar property can go for $ 950,000 ) have witnessed a similar surge in prices . See also : Where are the world 's most expensive luxury properties ? With so little space available , demand so high and restrictions that limit the height of new housing units , developers have been forced to get creative when constructing new properties . Some have been forced to make the most of tight locations . `` We took six to eight months to complete this project , '' explained Namrata Malkani , a developer whose family bought a small plot of land and developed a compact yet modern four-story apartment block between two old , crumbling houses . `` We have partly sold it , '' already she proudly adds . Read more : Can micro-home offer housing solution ? Improvements in the surrounding area and investments in local services meanwhile have helped make the neighborhood a more desirable place to stay , Malkani revealed . `` Because of the drainage it was ( previously ) difficult to stay here because it was smelly , '' Malkani said . `` But the government has invested a lot into bringing up gardens and covering these drainages , which is why the property prices here have increased now . '' See also : A new star on the rise in Mumbai 's property market . And they have increased considerably . Homes such as Malkani 's sell for roughly $ 4,000 per square meter ( $ 371 per square foot ) . With a total area of 75 sq m ( 807 sq ft ) this means the asking price for Malkani 's two bedroom house comes in at $ 300,000 . Yet according to local estate agent , Rahul Rewal , these high prices still equates to a smart investment . `` I do n't see value in terms of size here , '' Rewal said . `` But why people buy here is they see a potential for appreciation and a stable return because the demand in the city is ever increasing , '' he added . For the 2.3 million people ( 17 % of the city 's population ) residing in New Delhi 's close by slum neighborhoods such ostentatious concerns remains a far cry from reality . Those with the means , such as Rewal and Malkani , however , expect to see more growth in their respective investments as the New Delhi population increases further . Eoghan Macguire contributed to this report .
Roughly 5000 people move to live and work in the Indian capital , New Delhi , every year . The cost of luxury housing in some of the cities most prosperous areas has rocketed as a result . Some properties in the most exclusive areas can command prices of up to $ 100 million .