Developers are also expecting the season to expand demand outside metropolitan areas such as Delhi-NCR and Mumbai.

Real estate developers are pinning their hopes on the festive season and the cut in goods and services tax (GST) rates to restart the housing demand cycle, with many expecting a spurt in inquiries and sales in the residential segment that has seen a lull in the past two quarters.

"By reducing GST on key inputs like cement and steel, construction costs will ease substantially, improving project viability and affordability. This consumer-driven shift will boost demand," said Zayd Noaman, President, CREDAI Bengaluru.

While no direct change has been made in GST rates for this sector, players expect the rise in