The festive season in India is typically viewed as the best time to buy a home. Developers commonly roll out new projects during this period, presenting attractive offers to lure buyers. These holiday specials often offer cash discounts, flexible payment methods, and extra perks like free modular kitchens or interior upgrades. These benefits help buyers handle initial costs and enhance their cash flow.
This year, a big change is happening. The government has cut the GST on construction materials such as cement from 28% to 18%. This decrease could result in slightly lower home prices, particularly for affordable and mid-range homes. Many developers may use these savings to accelerate project completion, offer flexible payment options, or provide festive perks instead of directly lowering the base property price.
Developers Launch Seasonal Deals to Attract Homebuyers
Reports indicate that home sales have slowed in the first half of the year. Nevertheless, demand usually surges during the festive season from September to December. It is expected that developers will implement new projects and strategies that present a blend of actual savings and attractive promotional incentives.
Some typical festive season perks are cash discounts of around Rs 100-200 per sq. ft., waivers for stamp duty and registration fees, flexible payment plans, lower booking amounts, and complimentary modular kitchens or other amenities.
Buyers should exercise caution, however. Ganesh Devadiga, who is the Principal Partner and Sales Director at Square Yards, offers guidance, “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.” From time to time, developers hike the base price and then give “discounts” that don’t truly lessen the final cost.
Why a GST Cut May Not Lower Prices Immediately
The GST decrease on cement and other materials marks a significant change. With construction costs climbing nearly 40% recently, this relief is crucial. If completely transferred, mid-range houses costing between Rs 50 lakh and Rs 1 crore might become 1-1.5% less expensive, whereas budget homes could decrease by 2-4%.
Yet, this does not indicate that property prices will decline right away. Many developers are likely to apply these savings to expedite their projects or to present better payment plans, instead of directly lowering prices.
Home Loan Rates Remain Unchanged – Should You Purchase Now?
At present, home loan interest rates in India are stable, between 8.25% and 9.5%. The Reserve Bank of India has maintained repo rates due to concerns about inflation. A few analysts predict that interest rates could decline gradually by late 2025, but waiting for them to drop may not be wise.
Real estate prices are on the rise, and the increasing prices of homes could eclipse the minor savings from small interest rate cuts.
Consumers should reflect on buying during the festive season since numerous sellers are motivated to bargain, and holiday discounts add significant value. However, they must also take into account possible delays from business interruptions, be financially equipped, and assess offers carefully rather than being overwhelmed by holiday cheer.
Choosing to buy now or delay for 6-12 months hinges on how quickly the GST benefits will be seen in lower property prices. Developers need time to convey these savings to buyers. If you wait, you may face higher prices due to strong demand and economic growth.
If you really need a home, it might be more beneficial to take advantage of the current holiday offers instead of counting on future price decreases.
Read more through the links below to uncover the key trends and market leaders driving this growth:
News18 India– https://bit.ly/41TLeka
Published Date: 11 Sep, 2025
