Mumbai real estate market: What homebuyers need to know about festive offers and GST benefits this Navratri 2025

As Navratri 2025 begins, Mumbai homebuyers may expect festive discounts and GST benefits, but experts say offers are limited with major launches due early 2026

As Navratri 2025 season kicks off, prospective homebuyers in Mumbai may be hoping for festive discounts and GST benefits. However, real estate experts and developers told HT.com that offers are limited, with few options available beyond flexible payment plans. They believe the main launch activity in Mumbai’s property market will instead take place between Makar Sankranti and Gudi Padwa, during the January–March 2026 quarter.

Navratri 2025: Mumbai homebuyers may expect festive discounts and GST benefits, but experts say offers are limited with major launches due in early 2026. (Picture for representational purposes only) (Mehul R Thakkar/HT)

The government’s recent GST cuts for ancillary industries have raised hopes that developers may eventually pass on cost savings to homebuyers. However, developers say that any such benefit will take time. It depends on when key sectors like cement, steel, logistics, and other construction-linked services begin passing their cost advantages to developers.

According to real estate experts, Mumbai’s property market has seen muted launches in 2025, largely due to delays in securing environmental clearances (ECs). This has slowed down marketing activity, with few offers available beyond flexible payment plans. As launches have declined, existing inventory is being steadily absorbed, allowing developers to remain patient and hold back on festive discounts or messaging around GST benefits for now.

The GST Council decided earlier this month to cut tax rates on key construction materials such as cement, granite, and marble. This is expected to lower project costs for developers and provide some relief to homebuyers. Under GST 2.0, cement and ready-mix concrete will attract 18% GST (down from 28%), bricks, tiles, and sand will be taxed at 5% (down from 18%), and paints and varnishes will come under 18% (down from 28%).

The reforms took effect on September 22, the first day of Navratri 2025. Yet, on the ground, there is little evidence of festive offers or GST benefits this season in the Mumbai real estate market.

Why are developers not able to pass on GST benefits to homebuyers immediately?

A developer from Mumbai’s eastern suburbs, who requested anonymity, explained that there is no immediate scope for passing GST benefits. “Any potential benefit can only be considered later, once the ancillary industries on which real estate depends, such as cement, steel, logistics, and other construction-linked services, begin transferring their cost advantages to developers,” he said.

According to him, this year’s slowdown in new launches has reduced competition among developers. “Those who are launching projects are doing so in a low-competition environment. Their marketing spends are limited while sales continue at a slow but steady pace. With no aggressive festive offers beyond flexi payment plans, the question of passing GST benefits to homebuyers simply does not arise,” he said.

While the government’s recent GST cuts for ancillary industries have raised expectations that developers will eventually pass on cost savings to homebuyers. However, real estate developers point out that this transfer will take time.

“Only if these industries pass on savings to developers over the medium or long term will developers be able to extend some benefit to homebuyers, and even then, it will be very minimal,” the developer said.

Citing his own project, he explained that construction contracts signed last year lock developers into fixed costs. “There is no possibility of my construction costs reducing now, as I am already committed to the agreed pricing with my contractor. At best, any pass-through might happen six to eight months down the line in new contracts and launches. But this too will depend on next year’s supply-demand scenario,” he said.

Muted market conditions take the shine off festive offers

According to real estate experts, the Mumbai real estate market has witnessed muted launches in 2025, primarily due to delays in securing environmental clearances (EC). Although the Supreme Court (SC) vacated the stay on obtaining ECs in August 2025, developers are still in the process of obtaining ECs, commencement certificates (CC), and RERA approvals.

"As a result, marketing activity has been limited due to a softened launch pace, and there have been few offers in the market apart from the flexi payment plans. As the launches have gone down, current inventory is being absorbed gradually by homebuyers, allowing developers to remain comfortable without rushing festive offers or passing or marketing about passing on GST benefits," said Ritesh Mehta, senior director and head (North and West), Residential Services and Developer Initiatives, JLL India, a real estate consultancy firm.

“Some form of GST benefit may or may not be passed on to homebuyers at upcoming property exhibitions this year, but only time will tell. Meanwhile, the Mumbai real estate market is already seeing a wave of payment-linked offers,” Mehta said.

Sales and launches in the Mumbai Metropolitan Region (MMR) and the Pune real estate market

Housing sales in the MMR and Pune together saw a 17% YoY decline to 49,542 units, translating to 10274 fewer units sold in Q3 2025, according to data released by NSE-listed real estate data analytics firm PropEquity on September 22.

With this, the sales share of the Maharashtra region, comprising MMR and Pune, declined to 49% in Q3 2025 from 57% in the same period last year. Thane saw the steepest decline, 28%, followed by Pune (16%), Mumbai (8%), and Navi Mumbai (6%), the report said.

According to the report, housing sales fell 1% QoQ, with Mumbai and Navi Mumbai registering 18% and 1% rises, respectively. Navi Mumbai remained flat, while Thane saw an 11% decline.

On the other hand, new launches in MMR and Pune cumulatively fell by 5% to 37,196 units in Q3 2025. While Mumbai (40%) and Thane (28%) saw a decline in new launches, Pune (49%) and Navi Mumbai (12%) saw a rise in Q3 2025 as compared to the same period last year, the report said.

The way forward

Real estate experts believe the key launch activity in Mumbai’s property market is likely to occur between Makar Sankranti and Gudi Padwa, during the January–March 2026 quarter.

"The period between Makar Sankranti and Gudi Padwa, from January to March 2026, is expected to see a surge in new launches, as projects delayed by regulatory hurdles begin receiving approvals over the next three to four months. This window could bring fresh offers for homebuyers in the final quarter of the financial year, potentially including festive discounts and GST benefits, if those are introduced," Mehta said.