Real Estate Developers Optimistic About Robust Housing Demand in December Quarter
Real estate developers are confident that the December quarter will see a surge in housing demand, driven by festive season sales and favorable government policies.
Real EstateHousing DemandFestive SeasonGst Rate ReliefProperty MarketReal Estate NewsOct 30, 2025
Real estate observers have said that this year’s sales momentum between Navratri and Diwali has been further accelerated by the GST rate rationalization, and developers are optimistic that this positive trajectory may sustain its momentum through November till January, turning the entire quarter into a resounding success for the sector.
The festive season in India, mostly starting from Navratri during September-October and extending through Diwali and up to the New Year, has been seen as a suitable period for high-value purchases. According to industry data, close to three lakh housing units have been sold and nearly the same number of units have been launched in the first nine months of 2025, across the top nine cities. The last quarter of the year has traditionally contributed between 25-35 percent to the full-year sales, thus promising to further strengthen the market.
“In India, the festive season has always symbolised optimism, hope, and renewed confidence. With favourable sentiment, evolving buyer preferences, and strong offerings from developers, this period is set to further boost demand and reinforce trust in the real estate market,” Bhavesh Kothari, Founder & CEO, Property First Realty said.
A PropTiger report said the outlook is one of cautious optimism, shaped by festive demand, supportive policies, and evolving market dynamics. Q4CY25 will be critical in setting the tone for 2026, the report added. Developers usually align new launches, offers, and marketing campaigns with festivals, as buyers plan big-ticket purchases. This has meant that the December quarter is traditionally the decisive quarter for annual performance, PropTiger observed.
Monty Joshi, Co-founder, Sarvam Properties said the festive season has always been an auspicious time to buy a home, and this year is no exception. “With favourable market conditions, growing buyer confidence, and a range of attractive offers, we are witnessing strong traction across the real estate market. Buying a home during this period goes beyond financial investment; it’s about creating stability, security, and a space where new memories take shape,” said Sarvam, a Mumbai-based residential property consultant.
Real estate data analytics firm PropEquity in its Q3CY25 housing report too has said that the festive season is expected to drive stronger demand, leading to improved launch momentum and a higher absorption level. Navin Dhanuka, Director at ArisUnitern, a Bengaluru-based real estate management firm observed that October-January has traditionally been a period when families choose to invest in property purchases. “We anticipate that this year, too, the spirit of prosperity and renewed consumer confidence will further strengthen demand in the real estate sector, encouraging more homebuyers to take decisive steps towards owning their dream home,” he added.
The growth in sales of premium homes and momentum in office leasing - led by Global Capability Centres (GCCs) and flex spaces - are playing an important role in providing a fillip to the domestic real estate demand. Property experts have said that this quarter’s momentum in real estate is expected to stay strong, supported by new project launches and attractive offers by developers, fuelled by seasonal demand and financial incentives.
Frequently Asked Questions
What factors are driving the optimism in the real estate sector during the December quarter?
The optimism in the real estate sector during the December quarter is driven by the festive season, GST rate rationalization, and favorable market conditions. These factors are expected to boost housing demand and sales.
How does the festive season impact the real estate market?
The festive season, particularly Navratri and Diwali, is a period when families traditionally make high-value purchases, including property. This period is often associated with optimism and renewed confidence, leading to increased demand in the real estate market.
What is the expected contribution of the December quarter to the full-year sales in the real estate sector?
The December quarter is expected to contribute between 25-35 percent to the full-year sales in the real estate sector. This quarter is traditionally decisive for annual performance due to the alignment of new launches, offers, and marketing campaigns with the festive season.
How are developers preparing for the December quarter?
Developers are aligning new launches, offers, and marketing campaigns with the festive season to capitalize on the increased demand. They are also leveraging favorable market conditions and government policies to attract more buyers.
What role are premium homes and office leasing playing in the real estate market?
The growth in sales of premium homes and the momentum in office leasing, particularly from Global Capability Centres (GCCs) and flex spaces, are playing a significant role in boosting the domestic real estate demand. These segments are contributing to the overall strength of the market.
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