Real estate portal 99acres.com on Wednesday said property prices in the national capital increased by up to 28.02 per cent in the January-March period this year in comparison to the year-ago period.

“Capital values in Delhi continue to move upward even though the market seems to be in a phase of stagnation and (there is) lots of talk about imminent price reduction,” 99acres.com Business Head Mr Vineet Singh said in a statement.

According to the study, prices went up by 28.02 per cent in Dwarka Sector 11 to Rs 7,100 per square foot during the quarter ended March 31, 2011, from Rs 5,546 per square foot in the same period last year.

Other locations such as Dwarka Sector 2, Sarita Vihar and Rohini also witnessed property prices climbing by over 25 per cent in the first quarter of this year compared to the corresponding period of 2010.

The survey said the most important factor fuelling the land rate hikes in Dwarka is Delhi Metro connectivity, which has “emerged as the turning point for real estate prices” in this region.

The lowest price growth happened in Uttam Nagar, where rates grew by 8.01 per cent to Rs 2,846 per square foot from Rs 2,635 a square foot in the January-March period last year.

Talking about the future, Mr Singh said the growth has moderated to an average of 15 per cent, which is about 5 per cent lower than the market sentiment.

“So, if the present trend continues, we’ll see price stability in Delhi going forward. But, as of now, I do not see any price reduction happening in the Delhi market. At its best, the rates will stabilise,” he added.

Property prices jumped by up to 19.94 per cent in Noida to Rs 3,372 per square foot, while they soared by 41.93 per cent in Gurgaon during the first three months of the 2011 calendar year vis-a-vis the year-ago period, the statement said.

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