The festive season in India is often considered the ideal time to buy a home. Developers frequently launch new projects during this period, offering attractive deals to entice buyers. These festive offers
often include cash discounts, flexible payment plans, and additional perks such as free modular kitchens or interior upgrades. Such benefits help buyers manage upfront costs and improve cash flow.
This year, there is a significant change: the government has reduced the GST on construction materials such as cement from 28% to 18%. This cut could slightly lower home prices, particularly for affordable and mid-range properties. However, many developers may choose to use these savings to accelerate project completion, offer flexible payment options or provide festive perks rather than directly reducing the base property price.
Developers Are Offering Big Festive Deals To Attract Buyers
According to Housing.com’s Festive Realty Outlook 2025, home sales slowed during the first half of the year. But usually, demand picks up in the September to December festive period. Developers are expected to roll out new projects and schemes that offer a mix of real savings and attractive marketing incentives.
Some common festive season benefits include direct cash discounts of around Rs 100-200 per sq. ft., stamp duty and registration fee waivers, flexible payment plans, lower booking amounts, and free modular kitchens or other amenities.
As quoted by Moneycontrol, Atul Monga, CEO and Co-Founder of BASIC Home Loan, says, “Base property prices remain elevated due to regulatory and land costs. For buyers, the real advantage lies in cash-flow easing features like staggered payments and EMI holidays.”
However, buyers should be careful. Ganesh Devadiga, Principal Partner and Sales Director at Square Yards, advises, “Genuine offers like direct cash discounts or waived fees can provide real savings. Compare the so-called discounted price with pre-offer rates and nearby properties before committing.” Sometimes, developers increase the base price and then offer “discounts” that don’t really reduce the final cost.
GST Reduction May Not Lower Prices Immediately
The GST cut on cement and other materials is a big change. Construction costs have increased by nearly 40 per cent in recent years, so this relief is significant. If fully passed on, mid-segment homes priced between Rs 50 lakh and Rs 1 crore could get 1-1.5 per cent cheaper, while affordable homes may drop by 2-4 per cent.
But this doesn’t mean property prices will fall right away. Many developers are likely to use these savings to speed up their projects or offer better payment plans, rather than cutting prices directly.
“Margins remain tight due to high land and compliance costs, so buyers may benefit more from improved offers rather than direct price cuts,” adds Monga, as quoted by Moneycontrol.
Home Loan Rates are Steady, So Should You Buy Now?
Currently, home loan interest rates in India are stable, ranging from 8.25 per cent to 9.5 per cent. The Reserve Bank of India has kept repo rates steady because of inflation worries. Some experts think interest rates may drop slowly by late 2025, but waiting for lower rates may not be helpful.
Property prices are steadily increasing, and the small savings from minor rate cuts could be overtaken by rising home prices.
End-users should consider buying during the festive season because many sellers are motivated to negotiate, and festive offers add real value. But they must also think about possible delays due to business shutdowns, be financially prepared, and compare offers carefully instead of getting carried away by festive excitement.
Whether to buy now or wait 6-12 months depends on how quickly the GST benefits will reflect in lower property prices. Developers might take time to pass these savings to buyers. Waiting carries the risk of further price increases due to strong demand and overall economic growth.
For buyers who truly need a home, taking advantage of current festive offers could be smarter than hoping for future price drops.
