Roughly 30-35% of India's annual home sales happen in the festive months. In 2026, two extra factors are stacked on top of that seasonal pull. GST 2.0 has cut cement from 28% to 18% and granite from 12% to 5%, trimming construction costs by an estimated 3-5%. Home loan EMIs, meanwhile, have stayed steady since the 2025 rate cuts. Together, these two shifts are giving developers real room to pass on savings instead of leaning on discount headlines, and buyers a clearer reason to act now rather than wait out the season. Developers say both are already showing up on the ground leading to more site visits, faster inquiries, quicker bookings this Navratri-to-Diwali season, with early signs pointing to one of the stronger festive stretches the sector has seen in years.
"The festive period could become a big boost for home demand in 2026. At Nehlia Developers, we are seeing solid interest from people who want a place to live and also from those looking to invest. Buyers seem especially focused on premium plotted land and farmhouse projects. They want a better way of life, access to nature, and a property that holds value over time."
One recent example is Nehlia Santo Hills. This is our 75-acre premium farmhouse development in the Aravalli Hills near Rewari. It shows how demand is shifting. More people now want spacious spaces and places that feel well planned. They are also looking beyond the usual city areas. We are also hearing more interest in developing travel routes and growth belts. This is being driven by upgrades in roads, services, and overall connectivity. On top of that, GST changes on key building items may help lower costs. Home loan rates are also staying steady. This mix is giving buyers more confidence. We are looking at how to pass these savings to customers. We are also reviewing our festive pricing and offers. For Q4 2026, we expect a strong run. Premium lifestyle projects should keep drawing buyers. Emerging corridors may also see steady interest from both end-users and investors.
Mr Pawan Sharma, Managing Director, TRG Group,
"The festive season is already translating into stronger buyer interest, with increased inquiries, site visits and serious conversations around bookings. We are seeing consumers respond positively to improved affordability and greater value in the market. The GST 2.0 reductions on key construction materials are also creating room for developers to optimize pricing and offers, supporting faster decision-making. While metro markets continue to see strong momentum, Tier-2 cities are showing encouraging demand as buyers become more confident. At TRG The Mall, we are also witnessing increased festive activity, reflecting stronger consumer sentiment. We expect Q4 2026 to remain a strong period for real estate demand."
Mr. Ravi Agarwal - Chairman and Managing Director, Lloyds Realty Developers Ltd.
“Festive periods have traditionally been an important inflection point for residential real estate, and this year we are seeing encouraging consumer intent, with enquiries and site visits gaining momentum as buyers look to align their purchase decisions with the festive calendar. At Lloyds Realty, we are seeing continued interest from buyers who are increasingly evaluating homes through the lens of location, connectivity, quality and long-term value. The impact of GST savings is also making the overall cost proposition more attractive, and the focus for developers is increasingly on translating these benefits into meaningful value for homebuyers rather than relying solely on headline discounts.
While metros continue to benefit from employment and infrastructure-led demand, Tier-2 markets are also gaining momentum, supported by improving connectivity, infrastructure and rising aspirations." We expect Q4 2026 to remain a strong period for residential demand, supported by festive sentiment, improving affordability and sustained buyer confidence.”
Mayur R Shah, Vice Chairman, Marathon Nextgen Realty and former President, CREDAI-MCHI,
"This festive season, we're seeing strong buyer momentum higher inquiries, more site visits and quicker decisions, aided by stable home loan rates and improving affordability, especially for ready and near-completion homes. GST rationalization on construction materials has eased input costs and we're passing these efficiencies on through competitive pricing, structured payment plans and festive offers, rather than focusing on headline pricing alone. While metros continue to see resilient end-user demand in established locations, Tier-2 markets are gaining healthy, value-conscious momentum backed by infrastructure growth. Heading into Q4 2026, we expect this momentum to strengthen further, driving faster conversions and healthy residential demand."
Prashant Khandelwal, Director & CEO, Agami Realty and Joint Secretary, Credai MCHI,
"This year, we are entering the festive season with good momentum already in the residential market. Mumbai has been seeing healthy registration activity, and on the ground, we are seeing this reflected in stronger enquiries, more site visits and customers becoming increasingly decisive in their purchase conversations. The festive period has traditionally given the market an added boost, so we expect this momentum to grow stronger in the coming months.
Another shift we have observed is how demand beyond the metros is evolving. In Tier-2 markets, buyers are increasingly looking beyond affordability and are willing to invest in better quality, lifestyle and long-term value. Our established presence across the MMR has given us a firsthand view of this evolution. Overall, with healthy end-user demand, stable borrowing costs and improving affordability, we remain positive about the outlook for residential real estate through Q4 2026 and believe the opportunity extends well beyond the festive season."
Mr. Chintan Sheth, Chairman and Managing Director, Sheth Realty,
"This festive season, the pre-festive lull has clearly given way to stronger momentum site visits and walk-ins have risen since late August, inquiries are up over last year, and bookings are converting faster, with buyers moving to token payments within weeks instead of waiting for Navratri or Dhanteras. GST-linked cost benefits and stable EMIs are channeled through festive offers, flexible payment plans and customer-centric schemes, improving affordability. While metros lead in absolute volumes, especially in mid-to-premium segments, Tier-2 markets are closing the gap faster, driven by infrastructure and end-user demand. We expect Q4 2026 to be among the strongest homebuying quarters, with momentum continuing beyond Diwali."
Virender Kumar, VP - Marketing, Arete Group ,
“The festive season is emerging as a decisive period for India’s residential real estate market, with the quality of demand standing out this year. Buyers are entering the market with greater clarity on product expectations, location and budgets. GST reductions on key construction inputs are encouraging, but their real impact will depend on translating savings into tangible customer benefits through better pricing, specifications or payment flexibility. Tier-2 and emerging markets are gaining momentum, with buyers increasingly prioritising quality construction, modern amenities and connectivity. September and October could set the tone for a broader Q4 2026 housing cycle, with strong prospects for quality-led, end-user-focused projects across emerging cities."
"The 2026 festive season is driven by genuine end-user conviction rather than just seasonal discounts. Buyers are increasingly decisive, treating homes as long-term lifestyle assets and prioritizing quality, amenities, and sustainability. Coupled with positive cost tailwinds from GST reductions on construction materials and stable financing, developers have the flexibility to offer sharper value. We expect a strong conversion cycle in Q4, making it one of the most constructive periods for residential real estate in recent years."
“The festive season has traditionally been a strong period for Indian homebuyers, but this year, sentiment is being reinforced by tangible economic factors. Healthy enquiries and site visits indicate stronger buyer intent, with customers moving from consideration to bookings faster where the value proposition is compelling. GST rationalisation is another positive for the sector. While the impact will vary by project and construction stage, lower input costs can enable developers to sharpen pricing, offer greater value and improve affordability. The benefit goes beyond headline price cuts and it can strengthen buyer confidence and purchasing power.
Demand is also broadening beyond the metros. Tier-2 and emerging cities are seeing increasingly sophisticated homebuyers, supported by better infrastructure, connectivity and employment opportunities, alongside rising purchasing capacity and aspirations for quality housing. With supportive borrowing costs and strong festive sentiment, Q4 2026 could see a meaningful conversion of pent-up demand. Developers offering transparent pricing, credible delivery and genuine customer value are likely to outperform those relying primarily on festive incentives.”
Mr. Payas Agarwal, Director Great Value Realty,
"This festive season, luxury real estate is witnessing rising demand, with a clear uptick in footfalls, enquiries and bookings. Heightened confidence among both end-users and investors, driven by lifestyle upgrades and the pursuit of long-term value, is accelerating decision-making, further supported by flexible payment structures and improved financing options. The distinction between metros and Tier-2 cities is narrowing — while metros continue to anchor premium and luxury demand, Tier-2 markets are gaining ground on affordability, improving infrastructure and rising incomes. With stable fundamentals and sustained buyer confidence, Q4 2026 is set to be a promising, high-momentum quarter for residential real estate."
