Festive Season Puts Real Estate Market To The Test As Homebuyers Turn Cautious

India’s real estate developers are looking to the festive season to lift housing sales, but this year’s market is proving more challenging than expected. While the period traditionally brings a surge in homebuying, rising property prices, affordability concerns and uncertainty over household finances are making buyers think twice before committing to a purchase.

The market is showing mixed signals. While some cities and housing segments continue to attract buyers, sales have slowed in several important markets. Developers are, therefore, counting on the weeks around Diwali to turn enquiries into actual bookings. However, attractive offers alone may not be enough to persuade buyers who are increasingly conscious of the cost of owning a home.

The NCR housing market, for instance, has also lost some momentum. Knight Frank India data show that 35,574 homes were sold in the region between January and September 2026, 11 per cent fewer than a year ago. The July-September quarter was weaker still, with sales dropping to 10,712 units. This was the lowest quarterly sales figure the region had seen since 2021.

The decline, however, is not uniform across the region. A sharp fall in new supply in the below-Rs 2 crore category and weaker sales in Gurugram have contributed significantly to the overall numbers. Excluding Gurugram, housing sales across the rest of NCR actually grew 3 per cent during the first nine months of the year.

The latest Magicbricks PropIndex report suggests that the housing market picked up pace during the July-September quarter. Demand rose 8.2 per cent from the previous quarter, while the number of homes available for sale increased by 1.9 per cent. Prices, meanwhile, inched up by just 1 per cent. The improvement is encouraging, but demand is still lower than it was a year ago. So, while buyers are returning to the market, the recovery has some way to go.

Mumbai, on the other hand, continues to show resilience. The city recorded 12,690 property registrations in October 2026, a 9 per cent increase over the same month last year. Stamp duty collections also rose 12 per cent year-on-year to Rs 1,173 crore, according to data from the Maharashtra Department of Registrations and Stamps analysed by Knight Frank India.

Buyers Are Interested, But Affordability Is Holding Them Back

The hesitation among homebuyers is becoming increasingly apparent at the sales level. A survey by Privyr, a mobile-first customer relationship management (CRM) platform for sales professionals, found that 50.8 per cent of the 63 real estate organisations surveyed reported lower festive bookings so far than during the previous festive season. Only 23.8 per cent reported an increase.

The survey covered around 300 property consultants across India and offers an interesting insight into why enquiries are not translating into sales.

For 42.9 per cent of the organisations, property prices exceeding buyers' budgets were the biggest reason serious prospects were holding back. Another 30.2 per cent cited uncertainty around jobs and income. Interestingly, only 7.9 per cent identified unattractive festive offers as the main reason for buyer hesitation.

The findings suggest that the problem is not necessarily a lack of interest in homeownership. Many prospective buyers are simply taking longer to make up their minds, particularly when the financial commitment involves a substantial loan and years of repayments.

This is also reflected in the number of interactions required to close a deal. Nearly 45 per cent of the organisations surveyed said they needed at least eight follow-ups to convert a serious enquiry into a booking. More than one in five required 13 or more follow-ups. The situation was more difficult in larger cities, where 62.5 per cent of organisations reported lower festive bookings. The corresponding proportion in other markets was 38.7 per cent.

Shivam Mani Tripathi, Co-Founder of Privyr, says the nature of festive-season buying has changed. Buyers are looking for reassurance rather than simply responding to offers. “Generating an enquiry is only the beginning, and sales teams need to stay in touch with prospective buyers to convert interest into bookings. Notably, 14 of the 15 organisations reporting higher bookings were using AI to manage their prospects and leads,” he added.

Long-Term Demand Remains Intact

The slowdown in sales does not necessarily mean that people have put their homebuying plans on hold. The Colliers Homebuying Sentiment Survey 2026 found that 54 per cent of prospective buyers remained positive about owning a home despite economic uncertainties. Almost one in two respondents said they planned to buy a property in the next two years.

The interest is there, but buyers are taking a harder look at what they are getting for their money. Price, location and the quality of construction are all likely to influence their decision.

Vimal Nadar, National Director and Head of Research at Colliers India, expects demand to stay steady over the coming quarters. He believes the festive season could bring more buyers to the market. But developers may find it difficult to turn enquiries into bookings unless their projects match buyers' budgets and expectations.

For developers, getting the basics right may matter more than announcing another festive offer. A well-connected location, sensible pricing and a suitable choice of apartment sizes could make a bigger difference to a buyer than a discount.

Quality and Location Matter More Than Discounts

Developers are hoping the festive season will give sales a lift, especially in areas where new infrastructure and better connectivity are drawing homebuyers. But buyers are doing their homework before committing their money. A festive offer may get them to visit a project, but the location, construction quality and overall price will ultimately influence whether they sign on the dotted line.

Mohit Goel, Managing Director of Omaxe Ltd, says homebuyers are no longer making decisions simply because a project comes with a festive offer. They are looking more closely at the developer's reputation, construction quality, delivery record, location and the property's long-term prospects.

He expects established and emerging growth corridors with improving infrastructure to attract stronger interest. “The premium and mid-premium segments are also likely to remain relatively resilient, although affordability will continue to be a concern for mass-market buyers,” he adds.

The change in buyer behaviour is also being seen in the kind of offers that attract attention.

Amrita Gupta, Director of Manglam Group and CEO of Manglam Spa and Resorts, says homebuyers are looking beyond discounts to assess the overall value of a property. Payment flexibility, construction quality, delivery commitments and the future potential of the location are becoming important considerations.

She believes this is a positive development for the industry as buyers who examine projects more carefully also encourage developers to become more transparent and accountable.

Anjana Sastri, Director-Marketing at Sterling Developers, expects more buyers to come forward as the festive season gathers pace. She says many people still prefer to make big-ticket purchases during auspicious occasions such as Ganesh Chaturthi, Dussehra and Diwali.

She is seeing interest in mid-premium and premium homes, particularly those in good locations with modern amenities and easy connectivity. Buyers are also looking for projects that offer a better community-living experience.

However, Sastri cautions against getting carried away by festive offers. She believes buyers should look at the developer's past record, ability to deliver projects on time and the location before making a decision. The long-term value of the property matters far more than a short-term discount.

Flexible Payment Plans Gain Importance

With property prices stretching household budgets, developers are also looking at ways to make purchases easier on buyers' cash flows.

Festive offers are not limited to discounts on the property price. Developers are also offering to pay stamp duty, waiving parking, floor-rise and maintenance charges, or throwing in interior packages.

But buyers are looking more closely at what these offers actually save them. Offers that bring down the upfront cost of buying a home are likely to find more takers than freebies that add little to the overall value of the deal.

Rayan Munawer, Founder and CEO of Terray Realty, says buyers today are more likely to value a lower booking amount or additional time to arrange payments than conventional freebies such as gold coins or gadgets.

Payment structures such as 10:90, 20:80, construction-linked plans and schemes offering temporary relief from EMI payments can make a purchase easier to manage. However, he advises buyers to compare the final all-inclusive price before and after the offer rather than focusing on the advertised benefit.

Any promised waiver or incentive should also be clearly mentioned in the cost sheet.

Munawer is also seeing interest in premium plotted developments, where buyers are looking for more open spaces, access to nature and properties that can hold their value over time.

Luxury Housing Expected To Lead Festive Sales

While affordability remains a challenge for a large section of buyers, the premium and luxury housing segments are expected to find more takers.

Harsh Jagwani, Managing Director of Notandas Realty, expects luxury residences to remain an important driver of festive-season sales. He anticipates a 20-30 per cent increase in the premium segment during the period, as buyers are seen showing interest in homes that offer better amenities and differentiated living experiences.

Cities such as Mumbai, Bengaluru, Hyderabad and Delhi are likely to remain important markets for this segment, according to Jagwani. He also expects attractive payment plans and festive offers to support buying decisions.

However, the strength of luxury housing does not necessarily mean that the broader market will see a similar recovery. Buyers in the mid-income and affordable categories remain more sensitive to property prices, loan commitments and uncertainty over future income.

A Crucial Few Weeks For Developers

The coming weeks will be important for the housing market. Developers have enquiries to work with, and the Colliers survey suggests that a sizeable number of prospective buyers are still considering a purchase. But converting that interest into bookings will require more than a festive discount or a limited-period offer.

Buyers are no longer making a decision just because a developer has announced a festive offer. They are visiting different projects, comparing prices and weighing the cost of buying a home against their future finances. Developers, meanwhile, will have to get their pricing, location and construction quality right. Flexible payment plans could also help bring hesitant buyers closer to a decision.

Festive offers may bring buyers to the site, but whether they actually book a home will depend on what they find. The sales numbers around Diwali should give a better idea of whether the interest seen in the market is translating into purchases.