Developers See Record Demand in Tier-2 and Premium Markets During Festive Season

India’s housing market is witnessing strong momentum this festive season, with developers reporting record demand across both premium and Tier-2 city segments.

According to a report published by The Economic Times on October 20, 2025, home sales are expected to rise by 10 to 15 per cent compared to last year, led by festive optimism and improving infrastructure in smaller cities.

Real estate developers said that housing demand has expanded beyond metro cities, with Tier-2 locations such as Jaipur, Lucknow, Coimbatore, Indore, Bhubaneswar, Kochi, Surat, Nagpur, and Chandigarh recording significant traction.

Growing e-commerce warehousing, retail expansion, and improved connectivity have supported this trend.

Rishi Raj, CEO of Conscient Infrastructure, said to the newspaper: “The festive season has always held a special place in India’s home-buying sentiment — it’s when emotional aspirations and financial confidence intersect. Cultural beliefs around auspicious beginnings continue to guide decisions, even for younger buyers.”

He added that demand for mid-premium and luxury homes priced between Rs 2 crore and Rs 5 crore has grown sharply in metro markets such as Gurugram and Bengaluru, driven by larger spaces and branded projects.

Rohit Kishore, CEO of Hero Realty, said, “Auspicious days have always driven strong sales graphs, and the momentum never wanes. This festive season, markets like Dwarka Expressway are witnessing remarkable appreciation, reflecting both buyer interest and rapid infrastructure growth.”

Developers said buyers are showing renewed interest in owning homes as interest rates remain stable and consumer confidence rises.

Flexible payment plans, waived charges, and festival-linked incentives are also attracting new customers.

Industry reports suggest that improved infrastructure and connectivity in Tier-2 cities are converting aspirational demand into real transactions. In metro regions, premium housing continues to perform well, supported by higher disposable incomes and urban lifestyle needs.

Analysts said the overall outlook for the second half of 2025 remains positive, with festive demand expected to set the tone for sustained housing growth across both metro and emerging markets.