Homebuyers in festive mood: GST 2.0, offers drive real estate momentum

As India immerses itself in the festive vibe, the residential real estate market is also expecting a major festive sales push, driven by the recent GST reforms. Fortune India spoke with developers and industry experts to assess sales momentum and strategies shaping buyer sentiment this festive season, examining trends in inquiries, offers, discounts, and home loan incentives. Some developers see a clear uptick in inquiries and site visits amid festivities, especially in premium and upper-mid-segments; others focus on experiences rather than discounts to drive sales. For buyers, GST 2.0, stable repo rates and improved liquidity, flexible financing options, and auspicious buying push have created a favourable environment for home buying.

How does festive sentiment look?

Industry players say enquiries and site visits have picked up over the past few weeks. They say bookings have historically seen a jump of 10-15% during these months, driven by both end-users and investors responding to market optimism. In the festive season, a clear resurgence in homebuyer sentiment has been seen, particularly in the premium and upper-mid segments across NCR, says Manik Malik, CEO, BPTP, known for building large-scale residential and commercial projects in NCR. "Today’s buyers are more discerning and long-term oriented—price-sensitive, yes, but also willing to commit when the payment plan is logically aligned with construction progress and the project offers strong value at the right price point," says Malik.

Beyond discounts, however, it is trust and optimism that fuel decisions. Rishi Raj, CEO, Conscient Infrastructure, says, like last year's festive response for PARQ in Gurugram, the company anticipates a similar uplift for Elaira Residences. "The festive season has always held a special place in India’s homebuying sentiment — it’s when emotional aspirations and financial confidence intersect," says Raj.

Auspicious days have always driven strong sales, but this time, these trends are set to gain further traction because of GST 2.0, says Rohit Kishore, CEO, Hero Realty. GST is expected to stimulate consumption, streamline costs, and create a positive multiplier effect. "With the rising potential of the industry and the festive promise that uplifts sentiments, we foresee strong demand. This surge is not just limited to metros; it is equally visible in Tier 2 cities, where growing aspirations are driving more people to invest in quality housing," Kishore says.

Festive offers and a positive market outlook

To cash in on the festive season trends, the developers are offering similar to last year, but the excitement is quite subdued, says Ravi Shankar Singh, Managing Director, Residential Services, Colliers India. "The inquiries are down by almost 20% compared to the same time last year. Cities like Bangalore, Pune and Navi Mumbai are still doing well in their demand for housing between Rs 1.5-2 crore."

However, he says, the real estate momentum is set to pick up pace from November, as developers align new launches with Diwali and year-end incentives to capture heightened buyer interest. While Q3 indicates a modest rebound, Q4 is projected to see stronger absorption. "Drawing from first-half insights, developers are refining offerings with a focus on size efficiency, financial flexibility, and lifestyle upgrades. The festive season marks a turning point, positioning Q4 for robust performance across premium and mid-income categories."

Anupam Rastogi, Co-Founder & CBO, NRI Real Estate, Square Yards, says similar to last year, there is a noticeable uptick in project inquiries as homebuyers explore options. However, this year, favourable factors such as GST reforms are providing an additional boost to home buyer confidence. "Developers often report higher footfalls during this period, reflecting increased engagement. Festive moods generally encourage timely decisions, with many homebuyers aiming to finalise purchases."

Rastogi feels these initiatives generally encourage potential homebuyers to move from inquiry to commitment. "While offers spark initial interest, actual conversions into final purchases usually take place over the next three to six months. Developers view this period as an opportunity to boost absorption and sales momentum."

Vishal Vincent Tony, Managing Director at Bengaluru-based Aratt Developers & Founder, Ayatana Hospitalities, which focuses on premium residential and mixed-use developments, sees Bengaluru buyers actively returning to the market this festive season. "...housing sales are estimated to have risen by 21% in Q3 2025 compared to last year, signalling renewed confidence and enthusiasm among homebuyers," says Tony, adding that buyers are responding positively to flexible payment structures, such as pay-on-possession plans and reduced upfront costs. Developers are also offering surprise discounts and collaborating with financial institutions on attractive home loan schemes.

Tony-led Aratt says in Q3, the company remains optimistic, especially in Bengaluru’s mid-segment and second-home markets, where demand fundamentals are strong. "Ultimately, a combination of attractive financing, well-priced inventory, and growing buyer confidence will drive a measured but meaningful recovery in the coming months."

Some prioritise experience over discounts

In the luxury residential segment, buyers are increasingly drawn to exclusive lifestyle-focused incentives that enhance the overall premium living experience. Robin Mangla, President, M3M, one of the biggest luxury real estate developers in NCR, says today’s high-net-worth individuals prioritise offerings that elevate comfort, convenience, and long-term value, rather than just pricing benefits. "By emphasising curated experiences, superior amenities, and a sense of exclusivity, such measures are generating strong traction and engagement."

According to Mangla, with interest and inquiries already showing a notable uptick, these initiatives are expected to sustain momentum through Q3. "Such measures not only support immediate sales but also reinforce the long-term appeal, resilience, and credibility of India’s luxury real estate segment in a competitive market," says the M3M president.

Pavan Kumar, Founder & CEO, White Lotus Group, which specialises in bespoke luxury homes, agrees, saying that festive incentives can help nudge decisions, but they’re not enough to counter early-year softness on their own. In the luxury segment, he feels, buyers are deliberate; they respond to substance, not sales tactics. "Compared to previous years where flexible payment plans or offers dominated festive promotions, today's buyers are saying: ‘Don’t reduce the price, raise the experience'," says Kumar.

In this festive season, the company has seen a marked shift toward experiential bundles -- curated interiors, integrated home solutions, and wellness-oriented inclusions like terraced gardens or spaces with biophilic design. "Festive incentives can help nudge decisions, but they’re not enough to counter early-year softness on their own; the real shift in Q3 is qualitative, with stronger inquiries, faster evaluation cycles, and deeper engagement," says White Lotus' Kumar.