Festive Season Boost: Will Real Estate Stocks Soar in 2025?
The festive season, coupled with government initiatives like GST cuts and RBI rate reductions, is expected to boost real estate stocks. Experts predict a surge in demand and stock prices for companies like Sobha, DLF, and Godrej Properties.
Real EstateFestive SeasonGst CutsStock MarketProperty PricesReal EstateSep 22, 2025
This consumption boost was further aided by the Reserve Bank of India (RBI), which, since February 2025, has reduced the policy rate by 100 basis points (bps). The reduction in interest rates is expected to stimulate economic activity and consumer spending.
In early September 2025, the GST Council, comprising the Centre and states, decided to reduce the tax rates on goods and services, effective from September 22, the first day of Navaratri. The new GST structure will be a two-tier system, with the majority of goods and services attracting a tax of 5% and 18%. A 40% tax will be levied on ultra-luxury items, while tobacco and related products will continue to be in the 28% plus cess category.
Besides, automobiles and auto components, as well as construction and building materials such as cement, will become cheaper. This reduction in prices of construction raw materials, coupled with steady home loans and festive offers by banks, is likely to see good demand in the real estate sector, thereby propelling the stock prices of companies.
Ravi Shankar Singh, Managing Director, Residential Services at Colliers India, notes that the festive season is an excellent time to buy a new home, offering several financial and emotional benefits. 'Government GST cuts on construction materials could lead to more affordable property prices, especially in the affordable and mid-range segments. Developers are offering attractive incentives like cash discounts, flexible payment plans, and free add-ons to boost sales. Home loan interest rates are also stable, with banks providing festive offers. Beyond financial gains, many Indians consider this period auspicious for new beginnings,' Singh says.
Meanwhile, Ashwin Chadha, CEO at India Sotheby's International Realty, says that the festive season usually brings a 15–20% jump in luxury real estate enquiries, and this year is no different. With home loan rates holding steady and high-net-worth individuals (HNIs) showing resilient demand, momentum in the top-end segments continues to be steady. A GST cut will also bring in a certain sentiment boost, even though luxury buyers are largely insulated from small price shifts.
At the same time, discerning buyers are treading carefully in micro markets where prices have already spiked sharply. Globally, the expectation of US rate cuts by year-end is adding a liquidity boost, reinforcing investor confidence. Luxury real estate continues to be valued for its capital appreciation, rental yields, and role as an inflation hedge—cementing its place in wealth strategies, Chadha adds. 'Interestingly, HNIs and UHNIs are also diversifying into alternatives like REITs, AIFs, and structured products offering annualised returns of 12–18%. These are more financialised real estate investments, and they complement physical real estate really well,' Chadha notes.
Echoing similar views, Ganesh Devadiga, Principal Partner & Sales Director at Square Yards, says each festive season brings renewed momentum to India’s residential real estate market, as homebuyers actively explore properties during this auspicious period. Developers strategically time new launches and attractive offers to match this demand, leading to strong booking activity. Many of these bookings are expected to convert into final purchases in the coming quarters. 'Moreover, the recent repo rate cuts are easing pressure on buyers amid rising property prices, while GST reliefs are allowing developers to offer discounts without affecting margins, further supporting upbeat consumer sentiment. Given these factors, we anticipate the year ending on a positive note, driven by sustained market activity and strong buyer confidence,' Devadiga adds.
The NIFTY REALTY index has rallied nearly 2.5% in the past one month (as of noon deals on Monday, September 2025) and has jumped nearly 6.5% in the past six months. Among individual stocks, DLF shares have rallied 3% in one month and over 11% in six months, and Godrej Properties has gained nearly 4% in one month, but has fallen around 3% in six months. Sobha Ltd shares have risen around 8.5% and over 27% in the past six months. Prestige Estates Projects has risen 0.33% in 30 days and around 35% over the past six months.
Frequently Asked Questions
What are the key government initiatives boosting the real estate sector?
Key government initiatives include reducing the tax rates on construction materials, lowering the policy rate by the RBI, and offering new tax relief for individuals earning up to ₹12 lakh annually.
How do GST cuts benefit the real estate sector?
GST cuts on construction materials make these materials cheaper, leading to more affordable property prices, especially in the affordable and mid-range segments. This can boost demand and sales in the real estate sector.
What are some incentives offered by developers during the festive season?
Developers are offering incentives like cash discounts, flexible payment plans, and free add-ons to boost sales. These incentives make it more attractive for buyers to purchase properties during the festive season.
How are luxury real estate markets performing during the festive season?
The luxury real estate market is seeing a 15–20% jump in enquiries during the festive season. Home loan rates are stable, and high-net-worth individuals (HNIs) are showing resilient demand, leading to steady momentum in the top-end segments.
What is the expected performance of real estate stocks in the coming months?
Real estate stocks are expected to perform well, with the NIFTY REALTY index rallying nearly 2.5% in the past month and 6.5% in the past six months. Companies like DLF, Godrej Properties, and Sobha Ltd have seen significant gains in their stock prices.
Related News Articles
Porsche Accident in Pune: Doctors Arrested for Tampering with Blood Report
Two doctors have been arrested for allegedly tampering with the blood test report of the Pune teenager who drove a Porsche into a bike in a drunk state
Luxury Living in Mumbai: Bollywood Actors Invest in High-End Apartments
Bollywood actors like Ronit Roy, Shahid Kapoor, and Amitabh Bachchan are investing in luxury apartments in Mumbai, boosting the city's real estate market.
Chennai Real Estate Firm Treats 1,000 Employees to All-Expenses-Paid Trip to Spain
Chennai: Chennai-based real estate firm, Casagrand, is taking 1,000 of their employees on an all-expenses-paid trip to Barcelona, Spain, to celebrate their success and dedicated service.
Rental Housing Demand Surges to New Heights in Denmark
The demand for rental housing in Denmark has reached an all-time high, according to the latest report from EjendomDanmark, the leading association of property owners and administrators. This surge in demand is driven by a combination of factors, including
Vizhinjam Seaport Receives New Location Code, Boosting Infrastructure Development
The Vizhinjam Seaport has been assigned a new location code, which is expected to enhance its operational efficiency and attract more investments in the region. This development is a significant step forward in the ongoing infrastructure projects in Keral
Sirius Real Estate Concludes Successful Dividend Reinvestment Plan
LONDON - Sirius Real Estate Limited, a property company based in Guernsey, has successfully concluded its Dividend Reinvestment Plan, marking a significant milestone for its shareholders and the company's expansion strategy.