Flexible Payment Plans Boost Housing Demand Amid Affordability Concerns

Real estate developers are offering flexible payment plans, including low booking amounts, deferred payments, and staggered disbursals, to sustain demand without cutting headline prices. This move comes as housing sales slow and affordability pressures rise, even as costs remain elevated.

Housing sales volumes fell nearly 14 per cent in 2025, while overall sales value rose 6 per cent, indicating a shift towards higher-value homes. According to property consultancy firm Anarock, average prices rose 8 per cent annually to about ₹9,260 per square foot.

Industry executives say these flexible payment plans, once used selectively at the project level, are now being deployed more 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. The company uses these plans selectively for larger projects with sizeable inventory to ease purchase decisions in a high-interest-rate environment.

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 noted that buyers are becoming more focused on affordability, cash-flow management, and payment timing. “We are seeing strong traction… 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 explained. The trend is most visible in markets such as Mumbai, Bengaluru, Pune, Delhi-NCR, and Hyderabad.

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

Vikas Chaturvedi, Cofounder and Chief Executive at Xanadu Realty, noted that buyers, especially in lower and mid-ticket segments, are more cautious and 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.