The onset of Navratras on September 22, heralds the festive season this year. Last year, during the festive quarter (October-December 2024) residential sales slumped 26% YoY with the exception of Delhi-NCR which registered sales growth. Anarock data showed that last year housing sales dipped 4% across top cities though sales value rose 9% due to high demand in premium segment. The slide in sales continued through 2025 with a sharp 28% decline in Q1. Housing sales in Q2 2025 in top 9 cities fell below one lakh unit mark , a 14 quarter low , according to PropEquity data. Despite declining sales amidst high home prices, industry stakeholders hold out hope , expecting better performance in the festive quarter this year due to affordable home loan rates , improved consumer sentiment in the wake of GST rationalization and interest rate cuts and continuous high demand in luxury housing.
Road Ahead For Festive Realty - Industry Exudes Optimism Despite Slowdown In Sales
Festive season 2025 may revive housing demand with rate cuts, GST reforms & better sentiment, despite past dips. Luxury drives sales, while affordable housing sees modest revival.
Dr. Niranjan Hiranandani, Chairman Naredco & MD, Hiranandani Group
This festive season, the housing market is poised for a stronger performance, compared to last year's subdued festive quarter. The recent cut in interest rates has eased home loan EMIs, improving affordability and reviving higher consumer sentiment .Festive sales will be further supported by attractive deals and flexible schemes offered by the developers.
Early data already signals recovery-. housing sales in the top 8 cities grew 2%YoY in June 2025 with select markets like Gurugram and Ahmedabad showing upward momentum. With affordability and renewed consumer confidence converging , this festive quarter should witness a meaningful uptick in residential demand , setting a more positive trajectory for the sector.
Anuj Puri, Chairman, Anarock
In the backdrop of housing sales dipping in 2024 and in Q1 2025, the modest recovery in Q2 2025 is a positive signal. A significant surge is expected in sales in this festive season, with demand fuelled by affordable home loans following 100 bps rate cut, rising disposable incomes and infra boom. The festive quarter is estimated to carve out 25-30% share of the overall sales in 2025.
Because of escalating home prices in top cities, we will see investor momentum in tier 2-3 cities which is evident from 66% of land transactions in these cities in H1 2025. However, end-users will continue to look for best deals in their cities. Though premium mid-range and luxury housing will continue to dominate sales, yet we will see modest but meaningful revival of affordable housing due to cut in GST rates on critical input costs. Existing inventory in this segment is likely to liquidate faster in the festive quarter, hopefully setting the stage for additional supply and increased demand on the back of more focused government measures.
Ashwinder R Singh , Chairman, CII Real Estate Committee & Vice Chairman, BCD Group
The festive quarter in 2025 will test the resilience of India's housing market. Unlike last year's dip , demand is now shifting from opportunistic to purposeful . Buyers are seeking homes that offer both a lifestyle and long- term gain. Developers who combine disciplined pricing and transparency will outperform because festive optimism /sentiment no longer closes deals -value for money does.
Vineet Nanda, Director Sales & Marketing, Krisumi Corporation
The year 2025 has so far been lucrative for the real estate sector , especially because of the cumulative repo rate cut of 100 bps. The icing on the cake is GST reforms ,effective from September 22, the onset of Navratras. Unlike last year when the sector witnessed slowdown in sales., these two developments have created room for developers to launch attractive offers and discounts, laying the foundation for significant growth in home sales across segments. Festive season always sees a rise in demand for long-term value creating assets. Real estate is expected to be top choice for both end-users seeking an uplift in their lifestyle and long-term investors looking for value appreciation.
Samir Jasuja, Founder & CEO , PropEquity
Festive season bodes well as residential market is stablised and is in a healthy mode. This year we will perform the same way we did in 2024. There will be 4 lakh units of supply in 2025 and absorption will be at the same level. Luxury housing continues to perform well. In the last 6 years, apartments costing above INR 5 crore saw sales going up from USD 1.5 billion to USD 18 billion, with unit sales increasing from 1500 to 18000 units. Today, in the 6 lakh crore residential market sales, the share of luxury housing is 25% (worth INR 1.5 lakh crore ) which will stabilize. Homes in INR 1-3 crore price segment are in top demand.
Akhil Saraf, Founder & CEO, Reloy Realty Startup
Post-2020, there was abnormal housing demand but now things have stabilized . There is a lot of positivity and the market is in a healthier position. Demand for luxury will remain intact. Supply has gone up in this segment as developers are more keen to sell one unit costing INR 5 crore than pushing 10 affordable units costing INR 50 lakh each . There is a supply constraint in the affordable segment as it is financially unviable for developers.Though it is too early to judge the impact of GST rationalization, introduction of input tax credit would have given a further impetus to festive realty. Overall, the sales volume is expected to remain flat.
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