Sobha, DLF, Godrej Properties: Will realty stocks climb this festive season?

This consumption boost was further aided by the RBI, which, since February 2025, has reduced the policy rate by 100 basis points (bps).

Further, in early September 2025, the GST Council, comprising the Centre and states, decided to reduce the tax rates on goods and services from today, i.e., September 22 -- the first day of the Navaratri.

The GST will now be a two-tier structure wherein the majority of goods and services will attract a tax of 5% and 18%. A 40% tax will be levied on ultra-luxury items, while tobacco and related products will continue to be in the 28% plus cess category.

Besides, automobiles and auto components, as well as construction and building materials such as cement, will also become cheaper.

What does it mean for real estate sector?

A reduction in prices of construction raw materials such as cement, coupled with steady home loans and festive offers by banks, is likely to drive good demand in the real estate sector, thereby propelling the stock prices of companies.

Ravi Shankar Singh, Managing Director, Residential Services at Colliers India, notes that 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," Singh says.

Meanwhile, Ashwin Chadha, CEO at India Sotheby's International Realty, says that 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. Globally, the expectation of US rate cuts by year-end is adding a liquidity boost, reinforcing investor confidence. Luxury real estate continues to be valued for its capital appreciation, rental yields, and role as an inflation hedge—cementing its place in wealth strategies, Chadha adds.

"Interestingly, HNIs and UHNIs are also diversifying into alternatives like REITs, AIFs, and structured products offering annualised returns of 12–18%. These are more financialised real estate investments, and they complement physical real estate really well," Chadha notes.

Echoing similar views, Ganesh Devadiga, Principal Partner & Sales Director at Square Yards, says each festive season brings in 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," Devadiga adds.

How real estate stocks have fared

The NIFTY REALTY index has rallied nearly 2.5% in the past one month (as of noon deals on Monday, September 2025) and has jumped nearly 6.5% in the past six months.

Among individual stocks, DLF shares have rallied 3% in one month and over 11% in six months, and Godrej Properties has gained nearly 4% in one month, but has fallen around 3% in six months. Sobha Ltd shares have risen around 8.5% and over 27% in the past six months. Prestige Estates Projects has risen 0.33% in 30 days and around 35% over the past six months.