Industry exudes optimism despite slowdown in sales

By Vinod Behl

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.  The PropEquity data further projects housing sales to fall 4% to 100370 units during the July-September 2025 quarter. 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. 

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’sw 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.”

Shekhar Patel, President, CREDAI: “The festive quarter, from Navratri to Diwali, has traditionally been a high point for home buying in India. Last year’s steady demand laid a strong foundation for an even more robust festive season this year. The RBI’s recent repo rate cuts totaling 100 basis points have brought down the Rate of Interest on housing loans, further adding to festive demand. In addition, GST reductions on key inputs such as cement, along with a wave of new project launches, have strengthened buyer sentiment. With infrastructure upgrades and enhanced connectivity driving demand across metros as well as Tier II and III cities, this festive season is expected to further energise the real estate market. Residential real estate will continue to be a vital pillar of India’s growth journey and play a defining role in achieving the vision of Viksit Bharat @2047.”

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd: “This festive season, we are expecting significant growth in housing demand, particularly in the mid and premium segments. Developments such as the RBI’s cumulative rate cut of 100 bps, which is translating into cheaper home loans for buyers, have improved accessibility and boosted buyer confidence. Additionally, the GST reforms coming into effect from the beginning of Navratri are set to streamline processes and enhance transparency, further strengthening the housing market sentiment.

This Navratri, Signature Global is making the celebrations truly special with exclusive limited-time offers on select premium projects. Homebuyers can book their dream home by paying just 25% as the booking amount, receive a complimentary gold coin, and stand a chance to win a luxury car. With these exciting festive initiatives, Signature Global invites homebuyers to make this Navratri memorable by moving into their dream homes.”

Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation: “With the RBI’s policy support resulting in attractive home loan rates and the implementation of GST reforms making homes more accessible, the festive season of 2025 is shaping up to be a defining point for the real estate sector. Traditionally considered auspicious, this period amplifies buyer enthusiasm, and developers are gearing up with launches and offers that match market sentiment. We foresee strong demand for homes across segments, as buyers increasingly view real estate as a stable, long-term investment that enhances lifestyle while ensuring wealth creation. These developments together are set to accelerate growth and strengthen market confidence.”

Vikas Bhasin, Managing Director, Saya Group: “The festive season is here — and this year it brings real savings for home buyers. The Government has announced a rationalization of GST rates on a range of products, with the new, lower rates taking effect on 22 September, the start of Navratri. This change is expected to improve affordability and reduce the overall cost of many household items that new home buyers purchase. To make the celebration even brighter, we are offering an exclusive festive incentive at Saya Gold Avenue, Indirapuram. Homebuyers who book one of our limited 3- and 4-BHK apartments will receive a Croma Voucher of up to Rs. 5 lakh — a double bonanza to help you move into your dream home with added value.”

Ashwin Chadha, CEO, India Sotheby’s International Realty: “The festive season usually brings a 15–20% jump in luxury real estate enquiries, and this year is no different.  With home loan rates holding steady and HNIs showing resilient demand, momentum in the top end segments continues to be steady.  A GST cut will also bring in a certain sentiment boost, even though luxury buyers are largely insulated from small price shifts. At the same time, discerning buyers are treading carefully in micro markets where prices have already spiked sharply.”

Ganesh Devadiga, Principal Partner & Sales Director, Square Yards: “Each festive season brings renewed momentum to India’s residential real estate market, as homebuyers actively explore properties during this auspicious period. Developers strategically time new launches and attractive offers to match this demand, leading to strong booking activity. Many of these bookings are expected to convert into final purchases in the coming quarters. Moreover, the recent repo rate cuts are easing pressure on buyers amid rising property prices, while GST reliefs are allowing developers to offer discounts without affecting margins, further supporting upbeat consumer sentiment. Given these factors, we anticipate the year ending on a positive note, driven by sustained market activity and strong buyer confidence.”

Ravi Shankar Singh, Managing Director, Residential Services, Colliers India: “The festive season is an excellent time to buy a new home, offering several financial and emotional benefits. Government GST cuts on construction materials could lead to more affordable property prices, especially in the affordable and mid-range segments. Developers are offering attractive incentives like cash discounts, flexible payment plans, and free add-ons to boost sales. Home loan interest rates are also stable, with banks providing festive offers. Beyond financial gains, many Indians consider this period auspicious for new beginnings. Buyers should, however, perform due diligence by focusing on developer reputation, project quality, and base prices, rather than just discounts. Ultimately, this period presents a strong opportunity to invest in your dream home.”