Real Estate Stocks: Will Sobha, DLF, and Godrej Properties Soar This Festive Season?
The festive season is here, and with the government offering multiple incentives, the real estate market is poised for a significant boost. Homebuyers are actively exploring properties, and developers are timing new launches and offers to capitalize on this period.
Real EstateFestive SeasonStock MarketProperty PricesGst CutsReal Estate NewsSep 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). Additionally, 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 GST will now be a two-tier structure, 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.
Automobiles and auto components, as well as construction and building materials such as cement, will also 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. 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 in 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 major incentives provided by the government for the real estate sector this festive season?
The government has raised the income tax exemption limit to ₹12 lakh annually, reduced the policy rate by 100 basis points, and lowered GST rates on construction materials. These measures are expected to boost the real estate market.
How have real estate stocks performed in the past six months?
The NIFTY REALTY index has jumped nearly 6.5% in the past six months. Individual stocks like DLF have gained over 11%, Godrej Properties have fallen around 3%, Sobha Ltd has risen over 27%, and Prestige Estates Projects has gained around 35%.
What are the key factors driving the demand for real estate during the festive season?
Key factors include government incentives, reduced home loan interest rates, attractive offers from developers, and the cultural significance of the festive season as an auspicious time for new beginnings.
How are luxury real estate markets performing compared to affordable and mid-range segments?
Luxury real estate continues to see steady demand, with enquiries increasing by 15-20% during the festive season. However, luxury buyers are less sensitive to small price changes. Affordable and mid-range segments are benefiting more from GST cuts and developer incentives.
What are some alternative real estate investments that HNIs and UHNIs are considering?
High-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) are diversifying into REITs, AIFs, and structured products, which offer annualised returns of 12-18% and complement physical real estate investments.
Related News Articles
Raymond Unveils New Chapter with Demerger of Real Estate Business
Raymond announces vertical demerger of its real estate business into Raymond Realty, paving way for separate listing on stock exchanges.
NEET UG 2024: Counseling Set to Begin After Supreme Court Verdict
NEET UG 2024 counseling to commence after Supreme Court ruling, MCC and AACCC to announce schedules
HOMETHON Property Expo 2024: A Game Changer for Mumbai's Real Estate Market
The HOMETHON Property Expo 2024 has launched over 77 new projects and showcased ₹10,000 crore worth of inventory, offering buyers a unique opportunity to invest in Mumbai's dynamic real estate market.
Sumadhura Group Aims for Rs 4000 Crore Revenue from Bengaluru and Hyderabad Projects
Sumadhura Group, a leading real estate development firm, is targeting a revenue of Rs 4000 crore from its key projects in Bengaluru and Hyderabad. The projects include Sumadhura Epitome in North Bengaluru, Sumadhura Capitol Residences in East Bengaluru, a
Swedish Real Estate Giant SBB Secures EUR 2.78 Billion Bond Exchange to Reduce Debt
SBB, a leading player in Sweden's real estate market, has successfully completed a EUR 2.78 billion bond exchange, enhancing its financial flexibility and reducing debt.
A Complete Guide to Checking Registered Projects in MahaRERA
Discover the simple steps to verify project details in the Maharashtra Real Estate Regulatory Authority (MahaRERA). Learn how to ensure your investment is safe and compliant.