The festive season has traditionally been one of the most favorable periods for India’s real estate sector, with homebuyers considering property purchases an auspicious beginning to a new chapter. However, this year’s festive momentum comes amid a changing economic environment, with rising borrowing costs, property prices, construction expenses and GST-related considerations influencing purchasing decisions.

The Reserve Bank of India’s decision to increase the repo rate by 25 basis points to 5.50%, announced on October 7, has once again brought home loan affordability into focus. While festive offers and attractive payment plans may encourage buyers, developers believe that the market is increasingly being driven by fundamentals such as location, infrastructure, transparency, construction quality and long-term value.

Raghunath Reddy Bhattagiri, Co-founder and Managing Director, Triguna Projects, said, “While the festive spirit often accelerates homebuying decisions, property investment must ultimately be guided by fundamentals such as location, infrastructure and future liveability. Today’s buyers are evaluating connectivity to employment centres, transport networks, schools and everyday conveniences before committing their savings.

“With the repo rate at 5.50%, careful financial planning has become essential for home loan buyers. At the same time, GST rationalisation on construction inputs can offer some relief to developers. Projects backed by strong planning, credible execution and genuine appreciation potential will stand out. This festive season, buyers should look beyond discounts and focus on fundamentals.”

Amit Porwal, Founder, Aranyakaa Farms, said, “The festive season traditionally encourages buyers to view farmland and real estate as generational investments. However, seasonal enthusiasm should never lead to impulsive decisions. Land transactions require thorough due diligence, particularly regarding ownership titles, encumbrance status, zoning regulations and agricultural land-use permissions. Buyers must also examine road access, infrastructure availability and the overall feasibility of the site. In an environment of rising borrowing costs, investors should prioritise stability and legal clarity over speculation.”

Beyond market sentiment, GST remains an important consideration for residential property transactions. Under the prevailing framework, eligible under-construction affordable housing generally attracts GST at 1%, while other residential apartments attract 5%, without input tax credit. Completed properties sold after receipt of the completion certificate are generally outside the scope of GST. Buyers should verify the applicable tax treatment based on the nature and status of their transaction.

Ashish Bhutani, CEO, Bhutani Infra, said, “Festivals have always been a powerful catalyst for real estate demand, but the Indian property market is evolving beyond festive discounts and short-term incentives. Today’s buyers are more informed, financially conscious and focused on long-term value. While GST, borrowing costs and rising interest rates influence purchasing decisions, they do not diminish the fundamental strength of real estate as an asset class.

“The real opportunity for developers lies not in offering bigger discounts, but in creating greater value through superior infrastructure, strategic locations, transparent pricing and developments that deliver lasting utility. In commercial real estate, sustainable rental income, strong occupancy and long-term appreciation remain far more important than promotional returns. This festive season will reinforce an important shift: buyers are no longer simply purchasing square footage; they are investing in quality, credibility and future potential.”

HS Kandhari, Co-founder and Executive Director, Harmony Infra, said, “The festive season traditionally brings positive sentiment to the housing market, but today’s homebuyers are making more considered decisions. Along with location and amenities, they are examining construction progress, connectivity, surrounding infrastructure and the credibility of developers. Rising borrowing costs and the overall expense of homeownership, including applicable taxes, are also influencing decisions. While festive sentiment may encourage buyers to move forward, confidence in timely delivery, construction quality and long-term value will ultimately determine demand, particularly in the premium housing segment.”

Ravi Prakash Panday, Founder and Chairman, Amrawati Group, said, “The festive season offers an encouraging opportunity for families to take the next step towards property ownership, but the decision must remain financially sound. Buyers should compare locations, verify statutory approvals and assess whether a property meets their present requirements as well as future plans. Higher borrowing costs make affordability an important consideration. We expect demand to be stronger among financially prepared buyers who are looking for genuine long-term value rather than short-term price movements.”

Ultimately, the festive season may provide the emotional impetus for property ownership, but sustainable investment decisions depend on affordability, legal documentation, infrastructure and long-term demand. The latest repo rate increase underlines the importance of evaluating repayment capacity against changing borrowing costs. For developers, the focus must remain on credibility, quality and timely execution. For buyers, the message is clear: festive sentiment can inspire a purchase, but financial discipline and due diligence should drive the final decision.