Mumbai’s real estate developers are increasingly turning to ‘Buy Now, Pay Later’ (BNPL) and flexible payment plans during the monsoon season to attract prospective homebuyers and maintain sales momentum ahead of the festive period.
Over the past few weeks, developers have intensified promotions for deferred payment schemes through outdoor advertisements, online campaigns and social media platforms, according to industry experts. While such payment models have existed in the real estate sector for years, their visibility and adoption have grown significantly in recent months.
Unlike traditional festive offers that focus on discounts or price reductions, these schemes aim to reduce the immediate financial pressure on buyers by allowing them to postpone a part of the payment until a later stage of construction or possession.
How Do Buy Now Pay Later Schemes Work?
Under a BNPL or flexi-payment plan, buyers typically pay a smaller amount at the time of booking, while the remaining payment is scheduled closer to possession or linked to various construction milestones. Developers promote these schemes as an opportunity for buyers to secure properties at current prices without arranging the entire amount upfront.
Why Are Developers Promoting These Plans?
Real estate experts believe developers are using these schemes to attract buyers during the relatively slower monsoon period and create demand before the festive season begins.
“Developers have realised that by the time projects near possession, property prices may have appreciated to a level where many homebuyers may find it difficult to enter the market. By offering deferred payment schemes, they encourage buyers to lock in homes at today’s prices,” said Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiatives, JLL India.
Mehta added that these plans are especially popular in the premium housing segment, particularly for properties priced between ₹5 crore and ₹15 crore, where buyers often prefer spreading out their financial commitments. However, such schemes are less common for ultra-luxury homes above ₹15 crore, as these purchases are generally made by high-net-worth individuals through business or investment funds.
Developers such as Rustomjee Group, House of Hiranandani, Hiranandani Communities, Kalpataru and Raymond Realty are among those offering flexible payment options.
Are Flexi-Payment Schemes a Sign of Weak Sales?
Industry players maintain that these schemes do not indicate financial stress among developers. Large organised developers continue to report strong sales performance and use such offers mainly as marketing and customer acquisition tools.
“For many listed developers, nearly 80% of their targeted sales are already covered. The objective is not distress selling but to ensure inventory is absorbed. These schemes are also an effective way to generate leads,” a developer said.
Harmohan Sahni, MD and CEO of Raymond Realty, said only a limited number of buyers opt for flexi-payment options.
“Homebuyers understand that these schemes come at a cost, as they typically involve interest or financing charges. As a result, most still prefer conventional payment plans. However, there is a segment of buyers for whom these schemes work, depending on their financial goals. From a developer’s perspective, deferred payment plans are an effective marketing and customer acquisition tool that helps generate enquiries and ultimately boost sales,” Sahni said.
With Mumbai’s housing market remaining competitive, developers are using flexible payment structures as a strategy to widen buyer participation while sustaining sales growth during the monsoon period.
Source: Hindustan Times
