Housing Market Regains Momentum Ahead Of Diwali, But Buyers Are Looking Beyond Festive Offers

India’s housing market has entered the festive season on a firmer footing after a relatively subdued first half of the year. Home sales picked up in the July-September quarter, and developers across Delhi-NCR and other major markets are hoping the momentum will carry into the final months of 2026.

The recovery in housing sales has not been felt equally across the market. People looking for expensive homes are still buying, but for a family working within a fixed budget, a rise in property prices or the monthly loan instalment can make all the difference. Festive discounts may help sweeten a deal, but they won't necessarily persuade someone to buy if the numbers don't add up.

ANAROCK Research puts housing sales across the top seven cities at around 1,00,220 units in Q3 2026, against 97,080 units in the same quarter \last year - a rise of 3 per cent. The total value of homes sold went up from Rs 1.52 lakh crore to about Rs 1.55 lakh crore.

The numbers offer some relief after a slow run for the housing market through 2025 and the first half of 2026. Although the latest numbers point to a recovery, the relatively modest growth suggests that buyers are returning selectively rather than rushing to make purchases.

“The festive demand should hold, aided by festive offers, discounts and positive sentiment,” says Dr Prashant Thakur, executive director and head of research and advisory at ANAROCK Group. He expects the October-December quarter to follow a trend similar to last year's festive quarter, with new launches potentially growing by up to 10 per cent.

Thakur also points to a more cautious approach on both sides of the transaction. Buyers are assessing their options more carefully, while developers are paying greater attention to the products they bring to market.

Premium Housing Keeps The Momentum Going

The National Capital Region (NCR) remains an important part of the residential market's growth story, with Gurugram and Noida attracting buyers looking for larger homes, better amenities and established or improving connectivity.

The shift towards premium housing has also changed what developers are offering. Buyers in this segment increasingly expect more than a well-designed apartment. Gated communities, branded residences, recreational facilities and professionally managed living spaces are becoming important selling points.

“Premium housing is no longer just about square footage,” says Sudeep Bhatt, director of strategy at Whiteland Corporation. He points to growing interest in branded residences and integrated gated communities that combine security, amenities, wellness facilities and hospitality-led services.

Bhatt says wealthy buyers, including NRIs, are showing interest in homes where security, upkeep and everyday services are taken care of. They are willing to pay more for this convenience, though the price needs to make sense for what the project actually offers.

The premium housing market is also seeing activity in Noida and Greater Noida. Magicbricks Research's latest PropIndex report shows that buyers are still showing interest in premium homes in Noida and Greater Noida. Developers in Noida, too, are adding more properties in this segment.

The question is whether buyers will be willing to pay the asking price. Much will depend on the location, the quality of construction and what the project offers beyond the apartment itself.

Housing Demand Rises, But Recovery Remains Uneven

The latest PropIndex findings point to a broader improvement in housing activity during the July-September quarter. Housing demand increased 8.2 per cent quarter-on-quarter, while new supply rose 1.9 per cent. Property prices registered a more modest increase of 1 per cent over the quarter.

Bengaluru and Ahmedabad saw the biggest jump in housing demand, rising 14.2 per cent and 13.5 per cent, respectively. Buyer interest also picked up in Navi Mumbai and Thane. Mumbai, Hyderabad and Chennai reported an improvement, though the rise was smaller in Noida, Greater Noida and Kolkata.

Property prices, too, moved differently from one city to another. Mumbai and Chennai saw stronger price increases, while the overall rise across the market remained limited.

Buyers continue to favour two- and three-bedroom flats. These homes offer families more room without necessarily moving into the most expensive segment of the market.

The numbers also underline why a national recovery does not necessarily translate into similar growth for every city or neighbourhood. A project may benefit from improving connectivity or new employment opportunities, but high prices can limit the pool of eligible buyers.

For homebuyers, comparing prices and project fundamentals within a specific micro-market is therefore more useful than relying on headline growth figures for an entire city.

Larger Homes And New Launches Attract Buyers

Based on the recent survey done by ANAROCK, most consumers seem to be looking at 3BHK flats when buying a home. Around 48 per cent of the people surveyed felt that they wanted to live in a bigger apartment. So, it seems that bigger houses are still in demand even with soaring real estate prices and financial constraints.

Most consumers also wanted to buy from new launches as opposed to a ready to move home. Approximately 34 per cent of people answered that they would like to purchase a home from a new launch while only 18 per cent wanted to buy a ready to move home.

Usually when people don't want to wait for a house to be built or face any construction issues, they tend to buy ready to move homes. But since many people prefer to buy from a new launch, it shows that they are happy to wait for a home that has more space and meets their requirements.

However, buying an under-construction property requires careful checks. A festive offer or attractive payment plan should not distract buyers from examining the developer’s track record, project approvals, construction progress and promised possession date.

Borrowing costs could also influence buying decisions. The RBI’s 25-basis-point repo rate hike may add to the pressure on households already stretching their budgets to buy a home.

According to Thakur, the impact is likely to vary across buyer segments. Those looking at mid-range and luxury homes may be better placed to absorb higher interest costs, while affordable housing buyers could feel the pinch more quickly because their monthly budgets are tighter.

For a household working with a limited budget, even a modest increase in the home loan EMI can make a difference. It could affect the price of the property it can afford or leave less money available for other household expenses.

Developers Roll Out Festive Incentives

With Navratri and Diwali traditionally considered auspicious periods for property purchases, developers are using the festive calendar to encourage prospective buyers to take the next step.

BPTP Limited has introduced its ‘BPTP Pushpanjali’ campaign across residential projects in Gurugram and Faridabad. Depending on the project and applicable terms, buyers booking a home during the campaign can receive benefits such as a 20-gram gold coin, white goods and smart home technology.

JMS Group recently launched its ‘Navratri Nav Rewards’ programme, offering nine client gifts over the nine days of Navratri, with each reward valued at Rs 1 lakh. The rewards included a smartphone, an LED television and a luxury staycation.

Pushpender Singh, managing director of JMS Group, says, “The initiative is intended to make the festive season more special for clients and acknowledge their trust in the company.”

Roots Developers, meanwhile, has opened sales for Phase 3 of Roots Courtyard 2, its plotted residential development in Sector 95A, Gurugram. The launch follows the reported sell-out of the first two phases and reflects the developer's effort to tap demand for planned plotted developments.

Many other builders have their focus on luxury segment. M3M Noida feels demand will be good for luxurious properties as people will be looking at large carpet area, design of building, amenities offered and location of the project.

“The festive season usually brings more people into the housing market, with many looking to buy a home that suits their lifestyle and aspirations. In Noida, demand for premium and luxury homes is being driven by buyers who want more space, better design, quality amenities and a good location,” says Yash Garg, Director, M3M Noida.

Festive offers can make a purchase more attractive, but buyers also look closely at the project itself, the developer’s track record and what the property offers in terms of everyday living. “We expect interest in premium homes to remain healthy this season, particularly in projects that combine comfort, exclusivity and the potential for long-term value,” Garg adds.

Brahma Group is trying to attract customers during the festive season to build trust in them and in the real estate industry, while Origen Realty has focused on easy payment plans and good connectivity at the Dwarka Expressway micro market of Gurugram.

AU Real Estate is promoting its 10:90 payment plan which helps buyer to pay less amount at the beginning.

"In Delhi-NCR, especially Ghaziabad and Noida, better connectivity and ongoing infrastructure development are influencing homebuying decisions. Buyers are also looking for more than just a well-designed apartment. They want amenities, open spaces and recreational facilities, along with a neighbourhood where they can build a sense of community. These expectations show that homebuyers are paying greater attention to the quality of everyday living, while also keeping the property’s long-term value in mind," says Ashish Agarwal, Director, AU Real Estate.

Such schemes may appeal to buyers who want to spread their payments, although the full payment schedule, eligibility conditions and contractual obligations need to be understood before signing an agreement.

Buyers Are Becoming More Selective

Despite the optimism surrounding the festive season, developers acknowledge that buyer behaviour has changed. Families are increasingly scrutinising prices, location, construction quality and the developer's track record rather than making decisions purely because of a limited-period offer.

“The festive season is steering a mature, value-conscious market,” says Jitender Yadav, director of Roots Developers. Buyers, he says, are paying closer attention to infrastructure connectivity, execution timelines and long-term liveability. Investors, meanwhile, are increasingly looking for premium properties backed by credible developers rather than taking chances in speculative locations.

The festive season could work in favour of developers offering homes that meet buyers’ practical needs. Good connectivity, sound construction and amenities that people will use in their daily lives may carry more weight than freebies or discounts at the time of booking.

Ashish Tandon, chief business officer at Origen Realty, says festive offers and flexible payment plans give buyers more options when looking for a home that suits their needs and budget. But a purchase still needs to make financial sense.

Before signing on the dotted line, buyers should work out how much EMI they can afford after meeting their regular expenses.

Will The Recovery Last?

India’s housing market has shown signs of picking up, but it remains to be seen whether the momentum will carry through to the end of the year. Festive offers and fresh launches could bring more buyers to the market, while demand for larger homes and premium properties is likely to influence what developers build.

Much will depend on whether buyers can afford the homes on offer. Property prices and home loan EMIs will continue to influence buying decisions, though the impact will differ across cities and budget ranges. The next few months will show whether the current uptick in demand continues or fades once the festive season is over.