Ganesh Chaturthi 2024 boosts Mumbai’s real estate market with flexible payment plans as developers offer “buy now, pay later” schemes.
Festive Season Brings Flexible Payment Plans to Mumbai’s Real Estate Market
As Ganesh Chaturthi 2024 marks the onset of the festive season, real estate developers in Mumbai are focusing on flexible payment options to attract potential homebuyers. Unlike previous years, this season is witnessing fewer discounts but more emphasis on “buy now, pay later” schemes. These flexible payment plans allow homebuyers to invest in property by paying only 10% to 20% of the amount upfront, making it easier for individuals to enter the housing market with minimal initial costs.
Growing Popularity of Flexi Payment Plans
Real estate consultants report that flexible payment plans were a major trend last year and have gained even more traction in 2024. Branded developers are also getting on board, offering homebuyers the option to pay in installments. Under this plan, buyers pay a small initial amount, typically 10% to 20%, and settle the remaining balance upon taking possession of the property. Some developers even allow homebuyers to move into their new homes after paying 20%, with the rest paid in equal installments.
Ritesh Mehta, Senior Director and Head of Residential Services and Developer Initiatives at JLL India, highlighted that the slow housing supply in major markets like Mumbai, Delhi NCR, and other regions, has led many developers to introduce flexible payment plans. “Around 90% of new launches now offer these payment schemes,” Mehta added.
Legal Concerns Around Payment Schemes
While these payment plans may seem attractive to homebuyers, legal experts advise caution. They recommend opting for construction-linked payment plans, where payments are made based on the actual progress of construction. Schemes that offer significant discounts for early or upfront payments may expose buyers to greater risk if the project faces delays or other issues.
Stability in Mumbai Real Estate Market Despite Softened Demand
The Mumbai real estate market has seen steady growth in the past four years, driven by increased property sales and project launches. A key factor was the Maharashtra government’s decision in 2021 to waive 50% of the development charges, leading to increased activity in 2022 and 2023. Many developers have reintroduced subvention schemes or flexible payment options to maintain sales momentum.
However, a softening in demand has led mid-sized and smaller developers to keep prices stable, while larger, listed developers continue to increase rates. According to Mehta, 60% to 70% of primary sales are driven by branded developers, while smaller players make up 30% to 40% of sales. As homebuyers increasingly prefer branded developers, these players are able to maintain higher prices.
Mumbai-based developer Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President at NAREDCO West, stated that they are offering stable prices for ready-to-move-in projects in Chandivali. “We are expecting good traction for our 1 BHK and 2 BHK units priced at ₹1.15 crore and ₹1.69 crore, respectively,” Yagnik said.
Optimism in Delhi NCR for Ganesh Chaturthi 2024
Real estate developers in Delhi NCR also anticipate a boost in sales during Ganesh Chaturthi 2024. Mohit Kalia, Vice President of Sales and Marketing at Raheja Developers, noted that many buyers prefer to invest in property during the festive season when developers roll out a variety of offers.
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