A Slow Start, Premium Homes Lead

The festive season, traditionally a key period for India's residential real estate market, has begun on a relatively subdued note, with early bookings trailing last year's pace. However, with the festive fervour around Diwali still building, the coming weeks will be crucial in determining the overall performance of the festive quarter.

Despite the slower start, industry sentiment remains positive, with developers expecting festive footfall and bookings to improve. Premium homes are gaining traction, with buyers prioritising spacious layouts, quality construction, connectivity and lifestyle amenities. However, affordability concerns and cautious decision-making are prolonging sales conversions.

A Privyr survey of 63 real estate organisations and nearly 300 property consultants found that half reported lower festive bookings than last year. Budget constraints and job and income uncertainty accounted for 73.1% of buyer hesitation. Fewer than 10% cited unattractive offers, suggesting buyers are prioritising overall value over discounts. Shivam Mani Tripathi, co-founder, Privyr, says, “Festive seasons used to be about offers. This year, buyers want reassurance.” He adds that sustained engagement and timely follow-ups are becoming critical to converting enquiries into bookings.

The survey also highlights longer conversion cycles, with nearly half the organisations requiring eight or more follow-ups to convert a serious lead. Among teams needing at least four follow-ups, 57.8% reported lower bookings, against 33.3% among those requiring one to three. The findings underline the growing importance of consistent engagement and timely follow-ups in converting buyer interest into sales.

A Measured Market, Not A Weakening One

The relatively slower start needs to be viewed against broader market performance. According to Anarock, housing sales across India's top seven cities rose 3% year-on-year to 1,00,220 units in July-September 2026. New launches increased by 18%, while available inventory grew by 12%.

Knight Frank India's January-September 2026 data present a slightly different picture, with cumulative residential sales across eight major cities declining 1% y-o-y to 86,767 units. However, the moderation was uneven, with Mumbai recording 3% growth. Magicbricks' PropIndex reported an 8.2% quarter-on-quarter rise in housing demand in July-September, against a 1.9% increase in supply and a 1% rise in prices. Though demand remained below year-ago levels, the figures suggest a gradual recovery.

City-level trends reflect varying market conditions, with Bengaluru and Ahmedabad leading quarterly housing demand growth at 14.2% and 13.5%, respectively, according to Magicbricks.

Vivek Rathi, national director-research, Knight Frank India, says that residential markets remain resilient despite geopolitical uncertainties, tighter liquidity and the recent repo rate hike. While the lower end faces pressure, higher-value homes are gaining share. “In the run upto Diwali, festive offers and flexible payment plans from developers will support near-term demand,” he says, adding that sustained growth will depend on affordability, buyer sentiment and economic conditions.

Dr Prashant Thakur, executive director and head – research & advisory, Anarock Group, expects Q4 2026 housing sales to remain comparable with last year, supported by festive sentiment, with new launches potentially growing up to 10%. He points out that the 25-basis-point repo rate hike may affect affordable housing buyers more than mid-range and luxury segments, which are relatively less sensitive to borrowing costs.

Dr Niranjay Hiranandani, Co-founder, Hiranandani Group, attributes slower early bookings to fewer registration days during Navratri and a strong year-ago base. He says buyers are conducting greater due diligence on pricing, financing, location, construction quality and developer credentials. The run-up to Dhanteras and Diwali will be crucial for conversions, he adds, emphasising that genuine value, rather than discounts alone, will drive purchase decisions.

Premium Segment Emerges As A Defining Trend

A significant development in the housing market is the growing concentration of sales in higher price brackets. According to Knight Frank India, homes priced at ₹1 crore and above accounted for 55.6% of residential sales nationally during January-September 2026, up from 51.4% a year earlier. The ₹2-5 crore category recorded 19.4% y-o-y growth.

Ayushi Ashar, director, Ashar Group; founder and CEO, Ashar Urban Futures Lab, believes, “Homebuyers are increasingly viewing residential real estate as a long-term investment that combines lifestyle aspirations with financial security. The premium segment is attracting buyers who value spacious layouts, modern amenities, strong connectivity and quality construction.”

According to her, the latest market numbers reinforce this trend. Anarock Research recorded approximately 1,00,220 housing sales across the top seven cities in Q3 2026, while Knight Frank reported 19.4% growth in sales in the ₹2-5 crore category across eight major cities during January-September. Ayushi expects festive sentiment to further support buying decisions as consumers evaluate homes that meet their evolving needs and long-term aspirations.

Buyers are increasingly willing to pay a premium for larger homes, better design, modern amenities, privacy, wellness and connectivity. The trend reflects a shift in how homebuyers assess value, with the quality of the living environment becoming as important as the property's size and location.

Saurabh Bhutani, senior director, research & consulting, Savills India, describes the festive housing market as healthy, though momentum remains measured. "While overall housing sales remain broadly stable, premium and luxury segments continue to gain traction, reflecting homebuyers' increasing preference for superior amenities and quality developments. The mid-income segment continues to face affordability pressures, and buyers are becoming more selective about pricing, location, and project delivery," he says. According to him, premiumisation is increasingly a structural feature of India's residential market, driven by evolving aspirations and lifestyle preferences rather than seasonal demand alone.

Anarock's consumer sentiment survey points to a preference for larger homes, with 48% of respondents favouring three-bedroom configurations. Around 34% preferred new launches, against 18% opting for ready-to-move-in homes. This suggests that buyers are willing to consider new developments offering contemporary layouts and lifestyle features, provided the pricing and delivery proposition meet their expectations.

Sumeet Chunkhare, chief marketing & communications officer, Sobha Limited, says, “Premium buyers place greater emphasis on space, privacy, construction quality and integrated amenities.” Citing 19.4% y-o-y growth in sales in the ₹2-5 crore category, he adds, "At Sobha, we believe this shift reflects a more considered approach to homeownership, with buyers increasingly evaluating not just the property but the quality of life and long-term value it offers."

The changing definition of premium is also evident in the emphasis on wellness and community living. In Gurugram and Noida, premium developments are attracting buyers seeking spacious layouts and lifestyle amenities. Subhasish Pattanaik, CSMO, Godrej Properties, observes that buyers are looking beyond size and location to wellness, open spaces and thoughtfully designed homes from established developers. The company's Elevated Living Edit study in Pune found that 74% of surveyed homebuyers considered wellness amenities a core part of their living experience.

Satanik Chaudhuri, head of marketing, Bhartiya Urban, states, “Buyers are increasingly prioritising efficient layouts, natural light, green open spaces, wellness facilities and proximity to workplaces, schools and social infrastructure. There is also a growing preference for integrated communities that offer recreational and social opportunities while reducing dependence on external conveniences.”

Chaudhuri believes that the next phase of premium housing demand will be driven by tangible differentiation rather than luxury positioning alone. “Construction quality, design efficiency, developer credibility and connectivity will play an increasingly important role as buyers become more discerning,” he adds.

Kalyan Chakrabarti, CEO, Emaar India, highlights the growing demand for homes offering spacious layouts, thoughtful design, privacy, amenities and curated community living. “Festive offers and new launches can encourage families to conclude long-pending purchases,” he says. In Gurugram, the company is witnessing healthy project footfall and more serious buyer discussions at site offices.

In the ultra-luxury segment, festive sentiment plays a less decisive role. Ram Raheja, MD, S Raheja, says that buyers prioritise the address, design, construction quality, developer credibility and long-term value. Reporting 10% growth over the previous quarter, he sees sustained interest, adding that Diwali may provide an impetus, but product strength and buyer confidence remain the key demand drivers.

However, premium segment needs to be viewed alongside affordability constraints. Magicbricks' earlier PropIndex findings showed homes below ₹75 lakh accounted for 43% of buyer demand but only 17% of active listings. Rising land, construction and regulatory costs have pushed new supply towards higher price brackets, reflecting both growing aspirations and a shortage of affordable options. As Prasun Kumar, chief marketing officer, Magicbricks, points out, that the premium shift is partly a matter of preference and partly a consequence of constrained choice. Developers, therefore, need to ensure that the substantial demand for value-segment housing is not overlooked.

The trend is not uniform even within the premium market. Knight Frank data for Delhi-NCR show overall residential sales fell 11% to 35,574 units in January-September 2026, even as the ₹2-5 crore segment grew 8% to 15,333 units. Sales in the ₹5-10 crore category declined 39%, underlining the importance of product suitability and pricing. The willingness to spend more does not translate into an indiscriminate appetite for expensive homes.

What Buyers Expect Beyond Festive Offers

As the market becomes more selective, developers are realising that discounts alone may not be enough to secure bookings. Buyers are assessing the overall proposition, including the developer's track record, construction quality, delivery timelines, connectivity and surrounding infrastructure.

Structured payment plans, lower upfront costs and additional benefits can, however, encourage those already considering a purchase. Shalin Raina, MD, residential services, Cushman & Wakefield, says, “Developers are adopting a more strategic approach, with offerings aligned to buyer preferences. Structured payment plans remain attractive across segments, alongside enhancements such as modular kitchens and semi-furnished homes.”

Sunil Pareek, executive director, Assetz, highlights the importance of financial flexibility. Citing a Colliers finding that 65% of homebuyers consider attractive pricing and flexible payment plans critical to an immediate purchase decision, he says festive interventions work best when they address buyers' financial comfort rather than simply create urgency. At select Assetz projects, options such as a 5% down payment and 36 months of zero pre-EMI are designed to reduce the initial financial burden.

Vimalendra Singh, chief business officer (residential), Mahindra Lifespaces, similarly advises buyers to look beyond promotional benefits and evaluate location, pricing, quality specifications, legal documentation and the developer's execution record. “Festive incentives can enhance the proposition, but the final decision should reflect the suitability of the home for the buyer's budget, lifestyle and long-term aspirations,” he puts in.

Nagesh Kumar Battula, founder and CEO, Organo Eco Habitats, believes that premium housing must be judged by the quality of life it offers, rather than just space, finishes and amenities. “The real premium lies in what a home enables: better health, access to nature, meaningful relationships, a sense of community and a healthier living environment,” he says.

Battula is of the view that a home is not merely a lifetime asset but an inheritance for generations to come. Its value should therefore also be measured by the quality of the environment, resources and living conditions passed on to future generations. For developers, this means moving beyond expensive properties towards enduring habitats that nurture both people and the planet.

As the festive quarter progresses, Diwali and the weeks that follow may boost homebuying. However, sustained demand will depend on affordability, credible delivery, thoughtful design and lasting value. Ultimately, tomorrow's premium homes will be defined not merely by their price, but by the quality of life they offer.