Monsoon offers gather pace as builders chase buyers

Buy now, pay later schemes aim to boost sales ahead of the festive season.

Property Pulse

Real estate developers are introducing a range of flexible payment plans during the monsoon season as they look to revive housing sales before the festive buying period begins. 'Buy Now, Pay Later' (BNPL) and construction-linked payment schemes are becoming increasingly common across new residential launches, allowing buyers to book homes with a relatively small upfront payment.

Under most schemes, buyers pay 5 to 10 per cent of the property's value at the time of booking, with the balance linked to construction milestones or payable at possession. Developers say the approach helps buyers secure current prices while providing additional time to arrange finances.

Why now?

The monsoon is traditionally a slower period for property transactions, prompting developers to introduce promotional payment plans to generate enquiries and improve bookings. With Dussehra and Diwali still a few months away, many builders are attempting to build sales momentum ahead of the festive season.

According to a JLL report, flexi-payment plans are gaining traction in the premium housing segment, particularly for homes priced between ₹5 crore and ₹15 crore. Buyers in this category often prefer staggered payments instead of making a large upfront investment. 

The report notes that such schemes have a more limited role in the ultra-luxury segment, where purchases are often funded directly. Developers maintain that these schemes should not be interpreted as a sign of financial stress. Instead, they describe them as marketing initiatives aimed at accelerating sales, attracting new enquiries and improving inventory absorption.

Ch. Prabhakar Rao, president of TBF, said conventional payment plans continue to be the preferred choice for most buyers, though flexi-payment options can suit those seeking greater financial flexibility. Study the payment schedule, financing terms, construction-linked milestones and the developer's track record before committing to any offer.

Payment Plans 

• Booking amount typically 5–10 per cent.
  
• Balance linked to construction or possession.
  
• Popular ahead of the festive buying season.
  
• Common in premium housing projects.
  
• Check for hidden interest or financing charges.
  
• Review payment milestones before booking.