Festive Season Boosts India’s Real Estate Market Amid Policy Reforms

In India, festivals are more than celebrations—they are a time for life-changing investments, especially in real estate. Navratri and Diwali, regarded as the most auspicious periods to buy homes, symbolise prosperity and blessings. This year, cultural sentiment is boosted by policy reforms, low borrowing costs, and a buoyant market, creating one of the most compelling backdrops for homebuyers in recent memory.

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.”

Mohit Ramsinghani, Bombay Realty – Wadia Group, expects a 10–15% growth in Mumbai’s festive sales this year, led by luxury and upper mid-income segments.

Sidharth Chowdhry, MD, Dalcore, shared, “Enquiries rose nearly 25% over the previous quarter, with branded residences emerging as a top category due to trust and lifestyle appeal.”

Sarthak Seth, Sr. VP, Tata Realty, said, “Our festive offerings include easy payment plans and furnishing vouchers, aiming to make home buying easier and rewarding during Navratri.”

Aakash Ohri, Joint MD, DLF Homes, emphasised, “The Indian festive season has evolved into the annual high point for residential real estate. It’s a time when cultural auspiciousness aligns with strong consumer confidence. This year, demand for luxury homes is especially buoyant, driven by new launches and growing interest from NRIs and HNIs.”

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.”

Pradeep Aggarwal, Founder & Chairman, Signature Global, expects strong growth in mid and premium segments due to rate cuts and GST reforms.

Vikas Bhasin, MD, Saya Group, pointed out that GST rationalisation since Sept 22 has already boosted bookings at Saya Gold Avenue, Indirapuram.

Anjana Sastri, Director – Marketing, Sterling Developers, said, “Millennials’ growing desire for homeownership, supported by policy and income growth, is driving sharp demand for mid-to-premium properties with modern amenities.”

Manoj Gaur, CMD, Gaurs Group, added, “GST cuts and low rates have increased market liquidity. The festive season is seeing heightened interest, especially from first-time buyers.”

Sandeep Chhillar, Founder, Landmark Group, expects strong luxury market traction in Gurugram with high buyer engagement.

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.”

Amar Sarin added, “The proposed $100,000 H-1B visa fee hike in the US is encouraging NRIs to invest more in Indian luxury real estate.”

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.”