Premium Homes and Policy Support Boost Buyer Confidence

The festive quarter of 2025 has ushered in a renewed wave of optimism for India’s real estate market. Early data and developer feedback point to one of the strongest festive performances in recent years, marked by record sales, robust price growth across top metros, and a decisive tilt towards luxury and premium housing.

Sales Momentum: Festive 2025 Outpaces Last Year

According to ANAROCK Research, about 102,000 housing units were sold across the top seven cities during the festive quarter (October–December) of 2024. This year, industry trackers and developers indicate that sales and bookings are already higher by roughly 20–25 percent year-on-year, with several micro-markets such as Delhi-NCR, Bengaluru, and Hyderabad leading the charge.

The demand has been particularly strong in the Delhi-NCR region, which, according to Knight Frank India, recorded the highest 24 percent year-on-year increase in housing prices during July–September 2025 — the fastest among the top seven cities. NCR also led the country in office rental growth and residential price gains, reinforcing its position as India’s most dynamic property market this year.

The festival-driven buying spree is being attributed to a convergence of macroeconomic stability, policy cues, and rising consumer confidence. Developers say enquiries have translated into quicker bookings, especially for ready or near-possession properties.

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Policy Boost: Repo Stability and GST Sentiment Spur Demand

Two macro triggers are widely cited as catalysts this season — repo rate stability and the sentiment around GST rationalisation.

After a period of monetary tightening, the Reserve Bank of India’s decision to maintain a stable rate environment, coupled with expectations of future cuts, has restored homebuyer confidence. Meanwhile, renewed discussions on GST relief for under-construction homes have also fuelled positive sentiment among fence-sitters.

“Low interest rates and positive economic cues, including the recent repo rate stability and GST relief sentiment, have encouraged fence-sitters to act,” says Yukti Nagpal, Director, Gulshan Group. “This year’s festive cycle has outperformed expectations, with sales and bookings already up by around 20-30% compared to the same period last year. The luxury segment, particularly in Noida-Greater Noida, is dominating festive demand. Homebuyers are stepping into this segment with confidence, aided by flexible payment plans and improved financing options. We’re also seeing faster decision-making and bulk festive bookings both by investors and buyers; a sharp shift from the cautious approach seen in previous festive seasons. Overall, this festive cycle reflects a maturing market where aspiration, financial prudence, and lifestyle priorities are harmoniously driving India’s real estate momentum.”

The combination of steady borrowing costs and attractive festive payment plans has made the current season one of the most financially viable buying windows in recent memory.

Luxury Leads the Way

If there’s one clear standout from this year’s performance, it’s the dominance of the luxury and upper-mid housing segments.

Developers report that not only are sales volumes up, but the value of transactions has surged — signalling a definitive move towards higher ticket-size homes. Rising disposable incomes, a preference for larger layouts, and a desire for amenity-rich communities have all pushed buyers to upgrade.

 “This festive season has brought renewed optimism to the real estate sector, with strong momentum across enquiries and bookings,” says Rajjath Goel, MD, MRG Group. “We’ve seen a clear revival in buyer confidence, supported by favourable repo rate cues and expectations around policy rationalisation. Homebuyers today are making more decisive purchase decisions, recognising real estate as a secure and appreciating asset. Interestingly, demand for premium and upper mid-segment housing has strengthened, driven by aspirations for spacious, well-designed homes with modern amenities. There’s also a visible rise in NRI participation, with festive offers and new launches serving as key catalysts. Overall, the season is setting a positive tone for sustained growth in the residential segment, especially in markets like Gurugram and Dwarka Expressway.”

This sentiment finds backing in market data. ANAROCK’s latest quarterly update shows that the share of luxury housing (priced above Rs 1.5 crore) has risen sharply in the last two years, with developers aligning new launches to this high-demand category. In NCR, Noida, and Dwarka Expressway, developers are also seeing bulk festive bookings, reflecting not just end-user but also investor participation.

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NRIs and the Emotional Quotient

One striking feature of this year’s festive cycle is the surge in NRI interest. With global markets volatile and the rupee relatively stable, overseas Indians view Indian real estate as both a safe and high-return investment avenue. Developers note that festive launches — often tied to auspicious buying periods — act as strong triggers for these purchases.

 “This festive season, we’ve witnessed a significant uptick in both enquiries and conversions. The sentiment is distinctly upbeat, driven by a combination of softer repo rate signals and expectations of GST rationalisation,” says Shaurya Garg, Director - Marketing & Sales, Northwind Estates, “Buyers today are far more confident, seeing real estate as a stable long-term asset amid market volatility. Interestingly, luxury housing is leading this momentum; a clear reflection of rising disposable incomes and the desire for larger, amenity-rich homes. Another noticeable trend is the surge in NRI interest, with festive launches acting as a strong trigger for premium investments. As developers, we anticipate responding with thoughtfully designed, premium projects that match these aspirations. Overall, the festive quarter, thus, is shaping up as both emotionally charged and strategically growth-oriented for the industry.”

The combination of emotional sentiment and strategic investment behaviour is what sets this festive season apart. Developers note that many NRIs are not merely investing but buying second homes or luxury units for family use — a shift from purely speculative buying.

Sustainability and Fundamentals Matter

Alongside the festive cheer, experts emphasise the importance of smart, well-informed investment decisions.

"This Diwali, NCR's property market is witnessing fresh vigor as developers launch competitive prices, favorable sale terms, and well-designed projects that emphasize sustainability and integrated eco-systems," says Nandini Taneja, CEO, Bhumika Enterprises. "Yet, buyers need to evaluate the fundamentals: verifying developer credentials, financial backing, construction quality, timely delivery, and RERA compliance to make a safe investment. Simultaneously, with repo rates marginally lower, the real benefit is through margin money; hence, home loans are especially attractive for investors. Combining this with the development of emerging micro-markets, this festive season presents a perfect time to invest in properties with clear titles and good long-term prospects."

Emerging Trends: Faster Decisions and Premium-Ready Supply
This festive season has also underscored structural shifts in buyer behaviour and developer strategy:

-Shorter decision cycles: Buyers are acting faster, aided by digital booking options, transparent pricing, and stable lending rates.
-Ready or near-ready units dominate: Developers are pushing ready inventory to attract buyers seeking immediate possession, reducing project risk.
-Flexible payment plans: Festive-linked offers such as ‘10:90’ or ‘Pay on Possession’ schemes are enabling smoother conversions.

-Premium over mass launches: There’s a visible preference among developers to focus on fewer, design-led, premium launches rather than volume-driven projects.

Outlook: Confidence Beyond the Festive Quarter

Industry analysts expect the current momentum to sustain into early 2026, provided economic stability and consumer sentiment remain intact. NCR, Mumbai, and Bengaluru are likely to remain growth leaders, while cities such as Hyderabad and Pune continue to attract both IT professionals and investors seeking value buys.

Overall, India’s festive real estate story in 2025 reflects a market that has matured — one where aspiration and affordability are no longer at odds, and where luxury, lifestyle, and liquidity are shaping the next phase of growth.