Mumbai real estate market is witnessing a resurgence of ‘Buy Now, Pay Later’ (BNPL) schemes this monsoon, with developers increasingly promoting flexible and deferred payment plans to attract homebuyers.
Over the past month, developers have stepped up marketing of these offers, with prominent advertisements appearing on hoardings, digital platforms and social media, according to real estate experts. While deferred payment schemes have been around for several years, industry observers say the intensity of their promotion has increased significantly this season.
Unlike conventional festive discounts or price cuts, the latest campaigns focus on easing buyers’ upfront financial burden by allowing them to defer a portion of the payment until a later stage of construction or possession.
What is the ‘buy now, pay later’ scheme?
Under a ‘Buy Now, Pay Later’ (BNPL) or flexi-payment scheme, homebuyers pay only a small portion of the property’s value at the time of booking. The remaining amount is paid closer to the time of possession or in instalments linked to construction milestones. Developers market these plans as a way for buyers to lock in current prices without arranging the full payment up front.
Why has the scheme made a comeback?
Real estate experts say developers are aggressively reviving BNPL schemes to boost sales during the typically slow monsoon season and build momentum ahead of the festive period.
“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.
He said that the strategy is particularly popular in the premium housing segment, especially for homes priced between ₹5 crore and ₹15 crore, where buyers prefer to stagger their financial commitments. For properties priced above ₹15 crore, deferred payment plans are less relevant as such purchases are typically made by high-net-worth individuals using business or investment funds.
Experts also say developers are using these schemes to secure bookings before potential price hikes during the festive season. By locking in buyers now, they can generate sales momentum and revise prices later in the year.
Developers, including Rustomjee Group, House of Hiranandani, Hiranandani Communities, Kalpataru and Raymond Realty, are among those currently offering flexible payment schemes.
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Do flexi-payment schemes help developers close more deals?
According to developers, flexi-payment or deferred payment schemes are not a sign of financial stress. Most large listed developers have already achieved a significant portion of their annual sales targets and continue to maintain healthy balance sheets.
“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 small proportion of the company’s homebuyers opt for flexi-payment plans.
“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.
