Why Mumbai Developers Are Offering Buy Now, Pay Later 

This monsoon season, the Mumbai real estate market is seeing a comeback of ‘Buy Now, Pay Later’ (BNPL) programs, with developers increasingly marketing flexible and deferred payment arrangements to attract homebuyers.

According to real estate specialists, developers have increased their marketing efforts for these offers in the last month, with significant advertisements appearing on hoardings, digital platforms, and social media. While deferred payment plans have been around for a few years, industry observers report that their promotion has expanded dramatically this season.

Unlike traditional holiday discounts or price cuts, the new campaigns aim to reduce purchasers’ initial financial stress by allowing them to delay a portion of the payment until a later stage of construction or ownership.

What is the ‘buy now, pay later’ scheme?

A ‘Buy Now, Pay Later’ (BNPL) or flexi-payment system requires homeowners to pay only a percentage of the property’s worth at the time of booking. The remaining balance is paid closer to the time of possession or in installments based on construction milestones. Developers pitch these plans as a method for buyers to lock in current prices without committing to a full payment up front.

Why is the scheme making a comeback?

Real estate analysts report that developers are restarting BNPL schemes to increase sales during the slow monsoon season and build momentum for the festive season.Developers have understood that by the time projects reach completion, house values may have risen to the point where many homebuyers will find it difficult to enter the market. By providing delayed payment plans, they encourage customers to lock in properties at current pricing,” said Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiatives, JLL India.

The method is common in the premium property industry, namely for residences valued between ₹5 crore and ₹15 crore, where purchasers prefer to stagger their financial payments. Properties priced beyond ₹15 crore are often purchased by high-net-worth individuals utilizing company or investment cash, making deferred payment schemes less significant.

Experts also claim that developers are employing these techniques to obtain bookings before prospective price increases over the holiday season. By locking in buyers now, companies may build sales momentum and adjust prices later in the year.

Do flexible payment schemes help developers close more deals?

Flexi-payment or deferred payment plans, according to developers, do not indicate financial difficulty. Large listed developers typically meet annual sales targets and have strong financial sheets.For several listed developers, approximately 80% of their target sales have already been met. The goal is not distress selling, but to guarantee inventory is absorbed. “These schemes are also an effective way to generate leads,” a developer stated.

According to Harmohan Sahni, MD and CEO of Raymond Realty, flexi-payment plans are only used by a limited percentage of their house customers.Homebuyers are aware that these plans have a cost, as they often include interest or finance charges. As a result, most people still choose traditional payment arrangements. However, depending on their financial goals, these schemes may be beneficial to a certain group of customers. Deferred payment options are an excellent marketing and customer acquisition strategy for developers, generating inquiries and ultimately increasing sales, according to Sahni.