Should You Buy A Home This Festive Season Or Wait? Key Things To Check Before Taking The Plunge

For property developers, Diwali is a good time to push sales. This year, too, buyers are being greeted with a mix of offers, from free modular kitchens and gold coins to stamp duty waivers, discounts on additional charges and easy payment plans.

But buyers have more to think about than the freebies on offer. Home loan rates have gone up, property prices are already high in several markets, and a house purchase will affect their finances for years. What looks like a good deal at the sales office may not turn out to be one when the final bill arrives. The question is not how much a developer is offering, but how much the buyer actually saves.

So, should you buy a home this festive season or wait for a better opportunity? The answer depends on your financial position, the property you are considering and, above all, whether the deal makes sense after accounting for all costs.

What Are Developers Offering This Festive Season?

Developers are using a combination of price incentives and non-cash benefits to attract buyers. These include waivers on floor-rise and preferential location charges, stamp duty and registration benefits, flexible payment schedules and complimentary interiors. Some are also offering gold coins, electronic gadgets, cars and holiday packages.

However, the nature of these offers has changed compared with last year.

"In festive 2025, interest rates were falling. The RBI had cut the repo rate by 100 basis points that year. The pitch was largely 'buy now while it's cheaper to borrow'," says Saurabh Garg, Co-founder and CBO of NoBroker.

This year, the situation is different. The Reserve Bank of India has raised the repo rate to 5.50 per cent, its first hike in the current cycle. Higher borrowing costs can make prospective buyers more cautious, particularly those already dealing with expensive homes and stretched household budgets.

For instance, on an Rs 80 lakh home loan with a 20-year tenure, a 25-basis-point increase in the interest rate can add roughly Rs 1,200 to the monthly EMI, depending on the lender and the existing rate. Over the loan tenure, this can translate into a substantial additional interest outgo.

Developers, therefore, are finding ways to make the purchase more attractive without necessarily cutting the advertised property price. "Developers prefer waiving additional charges or offering flexible payment terms over reducing the headline property price," Garg says.

Inventory levels are another factor shaping festive offers. According to Garg, new launches in the top seven cities rose 32 per cent year-on-year during July-September, while demand increased by 7 per cent. The gap between new supply and demand is giving buyers more room to negotiate, particularly in projects where developers are looking to improve sales.

Not Every Festive Offer Translates Into Savings

For homebuyers, the biggest mistake is to judge a deal by the discount or the value of freebies advertised by the developer. What matters is the final amount they have to pay to own the property.

A reduction in the base price is generally more valuable than complimentary gifts because it can bring down the loan requirement and the interest payable over time.

“Depending on the applicable rules, it may also reduce certain costs linked to the property's value. Waivers on stamp duty, registration-related costs or floor-rise and preferential location charges can also offer meaningful savings. However, buyers should check whether these charges were part of the original cost sheet and whether the developer has increased other components to compensate for the waiver,” advises Garg.

Complimentary interiors, modular kitchens and parking benefits need similar scrutiny. Buyers should establish their actual market value rather than accept the developer's advertised valuation.

Garg advises buyers to ask for an itemised list of benefits, including the brand, model and quantity of products being offered. They should compare these with prevailing market prices and count a benefit only if it is something they would otherwise have purchased.

Gold coins, gadgets and holiday vouchers may make a festive offer look attractive, but they do little to reduce the financial burden of buying a house. Lucky draws are even less useful because there is no certainty that the buyer will receive anything.

If a developer is unwilling to reduce the base price, buyers could negotiate for specific charges to be waived instead. Whatever is agreed should be recorded in writing.

How To Spot A Genuine Discount

A festive discount is worth considering only when the final cost of the property is lower than what the buyer would otherwise have paid.

One way to establish this is to ask the developer for the earlier price list and compare it with the revised cost sheet. Buyers should also check prices of comparable properties in the same project and nearby developments.

An apparently attractive discount can sometimes be offset by an increase in the base price or additional charges for documentation, legal work, power backup, club membership, maintenance and other services.

“Payment plans can also make a deal look more attractive than it really is. While some schemes allow buyers to pay in instalments as construction progresses or defer a part of the payment, they should check how much they need to pay at each stage. A plan that asks for a hefty amount upfront may not help buyers who are already short of funds,” says Garg.

It is equally important to read the sale agreement carefully. Some agreements allow developers to raise the price later under certain conditions. Buyers should check when such an increase can be made, what costs it covers and whether the terms leave room for unexpected demands later.

The safest approach is to compare the complete cost sheets, including all charges and the payment schedule, rather than relying on the headline discount.

When Buying Now Makes Sense

Despite higher borrowing costs, the festive season can be a good time to buy for those who have already identified a suitable property and are financially prepared.

"For buyers who have stable incomes, sufficient savings for a down payment and the capacity to manage EMIs comfortably, the festive season can present a good opportunity," says Vikas Bhasin, Managing Director, Saya Group.

Developers may offer reduced booking amounts, flexible construction-linked payment plans, waived charges and other limited-period incentives. However, buyers should assess the overall cost of ownership rather than allow a time-bound offer to rush their decision.

“The ability to comfortably service the home loan is particularly important. Apart from the EMI, buyers must account for maintenance charges, property taxes, interiors, insurance and other household expenses. They should also retain sufficient savings to deal with emergencies instead of exhausting their funds for the down payment,” says Bhasin.

The location and the project's execution record matter just as much. A home that fits the family's requirements, offers reasonable connectivity and has the necessary social infrastructure is likely to be a better long-term purchase than one selected primarily because of a festive discount.

Could Waiting Be A Better Option?

Not everyone needs to rush into buying a house this festive season. If a buyer is still unsure about job stability, has not put aside enough for the down payment or is already paying off other loans, taking on a home loan now could add to the financial strain. A festive discount is no reason to take on a commitment that may become difficult to manage later.

Those who are not in a hurry can use this time to look at more projects, negotiate with developers and compare prices across locations. They may find that a property being advertised as a festive deal is not necessarily cheaper than similar homes nearby.

“In the NCR, Ghaziabad and areas along the Delhi-Meerut RRTS corridor are attracting attention as infrastructure and connectivity improve,” says Bhasin.

These locations are also relatively easier on the pocket than some of the more established markets in the region. However, buyers should check how close a project is to the transport network, how much time the daily commute will take and whether the developer has a good track record before making a choice.

Housing Demand Is Spreading Beyond The Metros

The big cities are no longer the only markets drawing homebuyers. As infrastructure improves and more people look beyond traditional urban centres, Tier 2 cities are also finding a place on the residential property map.

"The festive season brings together the sentiment of new beginnings and the aspiration for homeownership. Beyond festive offers, buyers are increasingly prioritising location, quality and long-term value," says Nikhil Madan, Managing Director, Mahima Group.

He points out that residential demand across 10 major Tier 2 markets grew at a compound annual growth rate of 14 per cent between FY2021 and FY2026. This reflects the growing interest in these cities as places to live and settle down.

For buyers who do not need to live in a metro for work, these markets could offer homes at more manageable prices. But a lower price tag alone should not drive the decision. Job opportunities, road and public transport connectivity, schools, hospitals and the availability of buyers when one eventually wants to sell are equally important.

In the end, the decision to buy this festive season or wait should come down to two things: whether the house is right and whether the buyer can comfortably afford it. Those with stable incomes, adequate savings and a property that meets their requirements may find this a good time to negotiate with developers. Those who need to stretch their finances to make the purchase happen would be better off taking their time.

Festive offers come and go, but a home loan can stay with a buyer for 15-20 years or even longer. It is better to miss a limited-period deal than commit to an EMI that becomes difficult to manage. A good home purchase is one that makes financial sense even after the festive offers have ended.