Festive Season Boosts India's Housing Market with Policy Support
India's housing market is witnessing a surge during the festive season, driven by policy reforms, low interest rates, and cultural sentiment. Navratri and Diwali are key periods for property investments, with notable increases in sales and revenue collections.
Real EstateFestive SeasonPolicy ReformsLuxury HomesHomebuyersReal EstateOct 03, 2025
Mumbai Sees Record Festive Sales
Mumbai’s city area (BMC jurisdiction) recorded 6,238 property registrations during the ten days of Navratri (Sept 22–Oct 1, 2025), a 20% increase over last year’s 5,199. This spike contributed to a 17% year-on-year rise in state revenue collections, which reached Rs587 crore during the festival. Daily registrations averaged 624 units, up from 578 last year.
September 2025 was Mumbai’s best September in a decade with 12,070 registrations, largely because the Shraddh period ended earlier (Sept 7–21), allowing Navratri to drive sales momentum within the same month rather than spilling into October. Stable interest rates, improving affordability, and growing demand for premium homes supported this surge. Stamp duty collections also rose from Rs56 crore to Rs59 crore daily.
Shishir Baijal, Chairman & MD, Knight Frank India, said, “Mumbai’s housing market has proven its strength with a 20% YoY growth during Navratri, driven by GST simplifications and stable interest rates. The robust revenue collections affirm sustained buyer confidence.”
Developer-led festive offers
Developers nationwide are capitalising on this momentum with attractive festive offers such as flexible payment plans, zero GST on select ready-to-move-in units, waived registration charges, and perks like modular kitchens and gold coins. The focus is on ready inventory and near-possession homes, appealing to buyers eager to move in quickly.
Vidhi Attri, Head-Marketing, Elan Group, noted, “Nearly 80% of our festive ad expenditure is digital, with budgets growing 50% over last year, driven by new luxury launches. Our campaigns, featuring Shah Rukh Khan, inspire aspiration and trust in the luxury segment.”
Rahul Singla, Director, Mapsko Group, said, “Simplified GST slabs and stable interest rates are bolstering buyer confidence, leading to a surge in enquiries and bookings.”
Ashish Jerath, President – Sales & Marketing, Smartworld Developers, added, “Buyer propensity for luxury lifestyles is at a peak. New launches in branded luxury are drawing strong responses, especially with tax benefits lifting sentiment.”
Policy tailwinds: GST rationalisation & repo rate cuts
Government GST rationalisation and simplification for under-construction homes have improved affordability, while RBI’s cumulative 100 bps repo rate cuts this year have kept EMIs at historic lows.
Rohit Kishore, CEO, Hero Realty, highlighted, “With GST reforms and the festive uplift, demand is rising not just in metros but also Tier II cities like Mohali and Ludhiana.”
Amar Sarin, CEO, TARC Ltd., noted a surge in luxury enquiries, saying, “Our projects offer sustainable, aspirational living supported by favourable policies.”
Luxury segment demand and the NRI factor
The luxury segment in metros like Mumbai, Delhi NCR, Bengaluru, and Goa is witnessing robust demand.
Sandeep Ahuja, Global CEO, Atmosphere Living, said, “Mumbai’s luxury and branded residences saw a 24.8% YoY increase in registrations in September 2025. India is emerging as a top-10 global market for branded residences, expected to grow 200% by 2031.”
Lincoln Bennet Rodrigues, Bennet & Bernard, noted, “Goa’s luxury market is attracting NRIs and is now seen as a global address, not just a seasonal retreat.”
Emerging Segments: Plotted Developments and Tier II Cities
Rohit Maroo, Executive Director, ORA Realty, noted, “Plotted developments in growth corridors are gaining traction among retail investors due to clear titles and location potential.”
CREDAI President Shekhar Patel said, “Repo rate cuts, GST reductions, and infrastructure are unlocking demand beyond metros, especially in Tier II and III cities, strengthening real estate’s role in India’s growth.”
Analysts’ Outlook
Praveen Sharma, CEO, REA India (Housing.com), explained, “The festive quarter (Sep–Dec) consistently contributes 25–35% of annual sales. With subdued H1 2025, developers are frontloading launches and offers to recapture momentum. Q4 2025 could reset sector growth heading into 2026.”
Housing.com’s analysis points out that even during slow periods, the festive quarter drives a 10–15% uplift in transactions over Q3, underlining its role as the strongest sales season.
Ashwin Chadha, CEO, India Sotheby’s International Realty, added, “Festive seasons typically boost luxury enquiries by 15–20%. While luxury buyers are less affected by minor GST cuts, sentiment will improve.”
Ganesh Devadiga, Principal Partner, Square Yards, said, “Repo cuts and GST reliefs support consumer confidence. Developers are timing launches to maximise demand.”
Ravi Shankar Singh, MD, Colliers India, advised, “Buyers should focus on developer reputation and quality, not just festive deals.”
Frequently Asked Questions
What is the significance of Navratri and Diwali in India's real estate market?
Navratri and Diwali are considered the most auspicious periods for buying homes in India, symbolizing prosperity and blessings. These festivals boost cultural sentiment and often lead to a surge in property investments.
How have policy reforms impacted the real estate market in India?
Policy reforms such as GST rationalisation and simplification for under-construction homes have improved affordability. Additionally, the RBI’s repo rate cuts have kept EMIs at historic lows, boosting buyer confidence.
What are some of the attractive offers provided by developers during the festive season?
Developers offer various festive deals, including flexible payment plans, zero GST on select ready-to-move-in units, waived registration charges, and perks like modular kitchens and gold coins.
Which segments of the real estate market are seeing the highest growth during the festive season?
The luxury segment in metros like Mumbai, Delhi NCR, Bengaluru, and Goa is witnessing robust demand. Additionally, plotted developments in growth corridors and Tier II cities are gaining traction.
What advice do analysts have for homebuyers during the festive season?
Analysts advise buyers to focus on developer reputation and quality, not just on festive deals. They also suggest timing purchases to take advantage of policy benefits and market momentum.
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