The festive season traditionally brings renewed activity to India’s residential real estate market, with auspicious occasions such Diwali encouraging prospective buyers to advance their property purchase decisions.
However, industry experts say that beyond festive offers and purchase incentives, homebuyers are evaluating location, connectivity, construction quality, developer credibility and long-term value before committing to a property.
The shift towards more considered homebuying comes amid changing demand patterns across price segments and cities. Premium housing, in particular, has continued to attract buyer interest, while flexible payment plans and reduced upfront costs are emerging as factors that could help convert festive enquiries into actual bookings.
According to Knight Frank India’s January-September 2026 data, sales of homes priced between ₹2 crore and ₹5 crore grew 19.4% year on year across eight cities, even as overall residential sales remained broadly flat.
Nikhil Madan, Managing Director of Mahima Group, said the trend reflects demand from buyers looking for space, quality and long-term value rather than making purchases solely on the basis of festive sentiment.
The trend is also visible in the mid-to-premium housing segments.
According to JLL, residential sales across India’s top seven cities increased 8% year on year in the first quarter of 2026. Within this, sales in the ₹1.5 crore-3 crore segment grew 67%, while sales of homes priced below ₹1 crore declined 24%.
Vikram Singh, Group Vice President at WAL Developments, said festive offers are more likely to translate into bookings when they address genuine purchase barriers. Lower booking amounts, price reductions and construction-linked payment schedules can help buyers manage the financial commitment, while gifts and limited-period discounts may primarily generate enquiries.
He also stressed the importance of transparent pricing, including clarity on the original price, revised price, applicable conditions and the final amount payable.
Location, connectivity remain key considerations
Infrastructure development and improved connectivity are also influencing residential demand across emerging and established markets.
In Mumbai, the city recorded 12,622 property registrations in September 2026, the highest September figure in more than 14 years, according to Brijay Hemant Arya, Head of Sales at SILA Properties.
He also pointed to a 5% decline in stamp duty collections despite the increase in registrations, indicating a change in the transaction mix.
Arya said buyers are assessing connectivity, infrastructure, location and long-term value before making purchase decisions.
In markets such as Gurugram and Greater Noida, infrastructure development and expanding urban connectivity are among the factors supporting residential interest.
Ashish Tandon, Chief Business Officer at Origen Realty, identified the Dwarka Expressway micro-market in Gurugram as one of the locations gaining traction on the back of connectivity and social infrastructure.
Santosh Agarwal, Executive Director and CFO of Alpha Corp Development Limited, said residential interest in Greater Noida is being supported by infrastructure-led development and an expanding urban landscape. He added that buyers are paying greater attention to construction quality, location and long-term value.
Demand extends beyond metropolitan markets
The residential property market’s growth story is not limited to India’s largest cities. Tier-II cities are also attracting attention as economic activity, urban infrastructure and connectivity improve.
Madan cited CRISIL Intelligence estimates that residential real estate demand in Tier-II cities is expected to grow at a compound annual growth rate (CAGR) of 14% between FY2021 and FY2026. He said Jaipur could benefit from its growing economic importance and improving infrastructure.
The changing demand profile is also reflected in buyers’ preference for larger homes. Rohan Khatau, Director at CCI Projects, said demand for larger apartments is increasing, particularly among premium homebuyers considering upgrades. He added that festive payment plans and targeted incentives could provide the final push to buyers who are already evaluating a purchase.
For developers, the festive period therefore presents an opportunity to convert existing interest into transactions. However, industry experts believe that the ability to sustain demand beyond the festive season will depend on whether projects offer a credible combination of pricing, location, quality and practical value.
Festive season housing demand: What is driving homebuyers’ property purchase decisions