Festive season property market: Should you buy a house now or wait?

Should you buy a house this festive season?

The festive season is prime time for homebuyers in India, as developers roll out new launches and attractive deals. Typical offers include direct cash discounts, flexible payment plans, and add-ons like free modular kitchens or interiors. These schemes ease upfront costs and improve cash flow for buyers.

A major development this year is the GST cut on construction materials such as cement from 28% to 18% which could modestly lower home prices, especially in the affordable and mid-segment categories. However, developers may prefer to use these savings for faster execution because of fall in input costs, flexible payment plans, or festive perks rather than slashing base prices.

Market momentum, however, has been subdued. According to PropTiger.com, home sales dropped by 19% and new launches fell by 10% across India’s top eight real estate markets in the first quarter of 2025 (January–March). With the festive season around the corner, the key question for buyers is should you purchase a house now?

Festive offers: What’s on the table?

As per the Festive Realty Outlook 2025 by Housing.com, housing sales slowed in the first half of 2025, but demand typically rebounds during the September–December festive quarter. Developers are expected to launch new projects and offer schemes that combine both genuine savings and marketing appeal.

Common festive benefits include direct cash discounts of Rs 100–200 per sq. ft, waivers on stamp duty and registration fees, flexible payment plans, lower booking amounts to reduce cash-flow pressure and free interiors or amenities, such as modular kitchens.

“Base property prices remain elevated due to regulatory and land costs. For buyers, the real advantage lies in cash-flow easing features like staggered payments and EMI holidays,” says Atul Monga, CEO and Co-Founder, BASIC Home Loan.

That said, buyers should check whether the base price has been inflated to offset these “discounts.” “Genuine offers like direct cash discounts or waived fees can provide real savings. Compare the so-called discounted price with pre-offer rates and nearby properties before committing,” advises Ganesh Devadiga, Principal Partner and Sales Director at Square Yards.

GST cuts: Will they lower home prices?

The GST cut on cement and other materials is a structural reset. With construction costs up nearly 40% in recent years, this relief is meaningful. If passed on fully, mid-segment homes (Rs 50 lakh–1 crore) could see a 1–1.5% reduction in prices, and affordable homes may become 2–4% cheaper.

But the impact may not be immediate. Many developers could reinvest the savings into faster project execution or flexible repayment options instead of reducing sticker prices. “Margins remain tight due to high land and compliance costs, so buyers may benefit more from improved offers rather than direct price cuts,” adds Monga.

Should you buy now or wait?

Home loan interest rates in India are currently stable, generally ranging from 8.25% to 9.5%. The Reserve Bank of India has maintained steady repo rates due to inflation concerns. While some anticipate a gradual decrease in interest rates by late 2025, experts suggest that waiting for lower rates might not be advantageous.

Property prices have been appreciating consistently, and potential savings from minor interest rate cuts could be outweighed by rising property costs.

End-users should evaluate buying during the festive period due to motivated sellers willing to negotiate, and festive offers that can add value. “However, they should also factor in possible delays due to business shutdowns, ensure financial preparedness, and compare offers carefully rather than being swayed purely by festive sentiment,” says Devdiga.

Whether to purchase now or wait 6-12 months depends on the transmission speed of input cost savings to property prices. Developers may take time to fully pass GST benefits to buyers. However, waiting can be risky as property prices are generally rising due to strong demand and economic growth. For buyers needing a home, taking advantage of current offers may be smarter than speculating on future price drops.