Realty developers roll out flexible payment plans amid slow sales

Amidst a slowdown in housing sales and increasing affordability concerns, Indian real estate developers are strategically deploying flexible payment plans, including low booking amounts and deferred payments, to sustain demand and avoid outright price reductions.

Real estate developers are offering flexible payment plans — low booking amounts, deferred payments, and staggered disbursements — to sustain demand without cutting headline prices.

This comes as housing sales slow and affordability pressures rise, even as costs remain elevated.

Market Dynamics and Developer Strategies

Housing sales volumes fell 14 per cent in 2025, while overall sales value rose 6 per cent, indicating a tilt towards higher-value homes.

Average prices rose 8 per cent annually to about Rs 9,260 per square foot, according to property consultancy Anarock.

These plans, once used selectively at the project level, are now being deployed widely to boost conversions, especially in premium and mid-segment housing, where buyers are wary of large upfront payments.

“Flexible payment structures are gaining relevance in the current market environment, but they are not a one-size-fits-all solution,” said Sumeet Chunkhare, chief marketing and communications officer at Sobha Limited.

Innovations in Payment Schemes

Kalpataru has introduced a 10:90 payment scheme, requiring 10 per cent upfront and the rest on receipt of the occupancy certificate.

Managing director Parag Munot said buyers are becoming more focused on affordability, cash-flow management, and payment timing.

“These offerings help customers plan investments by deferring a substantial portion closer to possession,” he added.

Developers are favouring structured payment plans over outright price cuts to preserve pricing power, said Anarock vice-chairman Santhosh Kumar.

“The idea is to keep prices intact while reducing the buyer’s entry cost,” he said.

The trend is most visible in Mumbai, Bengaluru, Pune, Delhi-NCR and Hyderabad.

Impact on Buyer Behaviour

Mumbai-based The House of Abhinandan Lodha introduced a 1 per cent growth investment plan for its Naigaon project to lower upfront payments and widen access to entry-level housing.

Vikas Chaturvedi, cofounder and chief executive at Xanadu Realty, said buyers, especially in lower and mid-ticket segments, are value-sensitive.

Such plans reduce the immediate burden and narrow the gap between intent and booking.

For Magicbricks, adoption remains selective, depending on inventory and target segments.

“These structures are less about discounting and more about enabling entry,” said chief marketing officer Prasun Kumar.