KEY TAKEAWAYS
- A festive offer is only worth what it saves you in rupees, in writing. Convert every freebie into a number before you compare projects.
- On a ₹1.2 crore under-construction flat, GST at 5% is about ₹6 lakh, and stamp duty, surcharge and the 2% registration fee add roughly ₹9 lakh more (my calculation). "GST paid" and "stamp duty paid" offers are real money.
- "No EMI till possession" (subvention) offers carry the most risk. If the builder stops paying the bank, the EMIs become yours, possession or not.
- Gold coins, appliances and "free" modular kitchens are usually worth far less than a straight discount on the base price.
- Never pay more than 10% of the price before a registered agreement, and get every promise into the allotment letter.
Festive offers in Bangalore can be worth several lakh, or almost nothing. The ones worth having lower the cash you actually pay: GST borne by the developer, stamp duty and registration paid, or a clear cut in the price per sq ft. The ones to treat with caution are "no EMI till possession" schemes, bundled freebies and offers that exist only in a brochure.
Between Navratri and Diwali (8 November this year), most developers in the city run some kind of scheme. Below I go through the common offers, how to put a rupee value on each, which ones carry risk, and what must be in writing before you pay a token.
Why Developers Push Offers in the Festive Season
Many families prefer to book or move into a home around Navratri, Dussehra and Diwali, so developers time launches and schemes for these weeks. There is a second reason this year. Anarock's figures for July to September 2026 show Bengaluru launched slightly more homes than it sold, and unsold stock was already about 79,200 units at the end of June. When stock builds up, developers would rather offer a scheme than cut the headline price, because a visible price cut upsets buyers who booked earlier.
That gives you room to negotiate. It also means the offer is designed to look bigger than it is.
What Common Festive Offers Are Actually Worth
The table uses a ₹1.2 crore under-construction flat as an example. The rupee values are my calculation from the published rates, rounded, and will vary with the property and the project.
| Offer | What it covers | Approx. value on ₹1.2 crore | Watch out for |
|---|---|---|---|
| GST paid by developer | 5% GST on an under-construction home (1% if it qualifies as affordable housing) | About ₹6 lakh | Check the base price was not raised to cover it |
| Stamp duty and registration paid | 5% stamp duty, about 0.6% surcharge and cess, and the 2% registration fee | About ₹9 lakh | Confirm whether it is on the agreement value or guidance value, and who pays at the sale deed |
| Flat discount per sq ft | A lower rate, for example ₹200 off on 1,300 sq ft | About ₹2.6 lakh | Make sure it is applied to the final agreement value |
| Free car park or club membership | Charges that are often billed separately | Depends on the price sheet | Ask what the charge would have been, in writing |
| Modular kitchen, appliances, gold coin | Fit-outs or gifts | Often ₹50,000 to a few lakh at retail | Brand and specification are vague; you cannot take cash instead |
| "No EMI till possession" (subvention) | Developer pays the interest on your loan until handover | Several lakh, depending on disbursement | You remain liable to the bank if the developer stops paying |
Here is how the first two rows work. GST on an under-construction home is 5% without input tax credit (1% for affordable housing). There is no GST on a home sold after the completion or occupancy certificate. Karnataka stamp duty is 5% for property above ₹45 lakh, plus surcharge and cess of about 0.6%, and the registration fee rose from 1% to 2% on 31 August 2025. Together that is roughly 7.6% of the value. On ₹1.2 crore, that is about ₹9.1 lakh in stamp duty and registration (my calculation).
So an offer that covers GST and registration costs together can be worth ₹15 lakh on a home of this size. A gold coin is not in the same league.
The Offer to Be Most Careful With: "No EMI Till Possession"
Under a subvention scheme, you take a home loan, the bank pays the developer in stages, and the developer pays the interest (pre-EMI) on your behalf until possession. It sounds like free money. The risk is that the loan is in your name.
If the project is delayed or the developer runs short of cash and stops paying, the bank comes to you. Buyers in several states ended up paying EMIs on homes that were years from completion. In the Himanshu Singh case, the Supreme Court described a nexus between builders and banks in such schemes and directed the CBI to investigate, as the Free Press Journal reported in October 2025. The National Housing Bank had earlier asked housing finance companies to stop funding developer-paid EMI schemes.
If you still want a subvention scheme, insist on three things:
- A tripartite agreement between you, the bank and the developer that spells out who pays what, and what happens if the developer defaults.
- Disbursement linked to actual construction stages, certified by the project architect, not a large upfront payment.
- A developer with a clean delivery record. Check its past projects and the RERA page for this one.
To put a value on it, use your own numbers. If an average of ₹50 lakh is disbursed over two years of construction at an 8% interest rate, the pre-EMI interest is about ₹8 lakh (my calculation, with an assumed rate). That is the most you gain, and only if the developer keeps paying.
How to Compare Two Offers Fairly
Developers rarely present offers the same way, so put both projects on one sheet:
- Write the all-in cost without the offer: base price, floor rise, preferred location charge, car park, club, maintenance deposit, GST, stamp duty and registration.
- Subtract only the offers that reduce money you would otherwise pay. Ignore gifts you would not have bought.
- Divide the result by the RERA carpet area. That gives you the real cost per sq ft of usable space.
- Ask each developer for a straight discount instead of the scheme. Some will agree, especially on projects with many units left.
Our buying cost calculator works out the GST, stamp duty and registration for you.
Dos and Don'ts Before You Pay a Festive Token
- Do get the offer in the allotment letter or booking form, with its rupee value or a clear description. A WhatsApp message from a sales executive is not enough.
- Do check the project on the Karnataka RERA portal: registration number, approved plan, completion date and quarterly progress.
- Do confirm the token is refundable, and on what terms, if your loan is not sanctioned.
- Do get your loan sanction letter before you commit, so a rate or eligibility surprise does not cost you the token.
- Don't pay more than 10% of the price before signing a registered agreement for sale. The RERA Act does not allow developers to take more than that.
- Don't let a "today only" deadline rush the paperwork. Festive offers usually run for weeks.
- Don't assume the offer survives a change in unit or floor. Ask.
- Don't skip the title and document checks because the brand is well known. See my guide to e-khata and property documents.
What It Means for Buyers This Festive Season
If you were going to buy in the next few months anyway, the festive season is a reasonable time to negotiate, because developers want bookings and Bengaluru has plenty of stock. If you are not ready, an offer is not a reason to buy. A ₹5 lakh freebie does not make a wrong home right.
What I tell clients: pick the home first, on location, layout, developer and price. Then use the festive offers to improve the deal. For a wider view of the market, see my notes on the Bengaluru housing market in Q3 2026 and on this month's RBI policy and home loans.
Frequently Asked Questions
Are festive offers in Bangalore real discounts?
Some are. Offers that pay GST, stamp duty or registration, or cut the price per sq ft, reduce what you pay. Gifts and bundled fittings are usually worth much less than they appear.
How much is GST on a flat in Bangalore?
GST is 5% on an under-construction home and 1% if it qualifies as affordable housing. There is no GST on a home bought after the completion or occupancy certificate is issued.
What are stamp duty and registration charges in Bangalore?
For property above ₹45 lakh, stamp duty is 5%, plus surcharge and cess of about 0.6%, and the registration fee is 2% since 31 August 2025. That is roughly 7.6% of the property value in total.
Is "no EMI till possession" safe?
It carries real risk because the loan is in your name. If the developer stops paying, the bank can ask you for the EMIs. Insist on a tripartite agreement and stage-linked disbursement, and check the developer's delivery record.
How much token amount should I pay when booking?
Keep it small and refundable until your loan is sanctioned and the documents check out. Under the RERA Act, a developer cannot take more than 10% of the price before a registered agreement for sale.
If you are weighing festive offers on a project and want a second opinion on what they are really worth, I am happy to look at the numbers with you. You can also post your requirement and I will come back with options that fit, or message me on WhatsApp.
Sources
- Propnewz: Karnataka Registration Fee 2 Percent: Bangalore Homebuyers' Guide 2026 (updated 26 Aug 2026)
- Free Press Journal: Subvention schemes promise "no EMI till possession" but trap homebuyers (20 Oct 2025)
- Moneylife: NHB asks housing finance companies to stop funding interest subvention schemes
- Brigade Group: GST on under-construction vs ready-to-move flats
- Proptals: Bengaluru Housing Market Q3 2026 (Anarock figures, 1 Oct 2026)
- Real Estate (Regulation and Development) Act, 2016, Section 13 (advance payment limit)
Last updated Oct 3, 2026. Figures and rules change; check current details with a professional before you act.