– Ankita Sood, National Director, Knight Frank India

For years, the festive housing pitch was simple, book a home and take something home with it. A gold coin, a modular kitchen, sometimes a car. The gift made a large commitment feel rewarding, and the Diwali deadline gave families a reason to stop deliberating and sign.This season, another proposition deserves attention: book now and pay in stages. Developers are advertising booking amounts of 5–10%, payments deferred until possession and pre-EMI holidays of up to 36 months. Gold coins remain on offer, but I believe the payment terms tell us more about today’s homebuyer. A freebie adds something to the purchase,but a payment plan changes how the purchase is managed.

Financial capacity is not financial timing

A gold coin does little to ease the immediate pressure on a household arranging its down payment, preparing for loan instalments and continuing to pay rent.

A flexible payment plan addresses that problem directly. A household may be comfortable with the overall commitment but reluctant to release a large amount at once. Capacity and timing are different questions, and the better festive offers today recognise this.

These arrangements are not new, but they matter more when developers must work harder for each booking. Across eight major housing markets, approximately 258,200 homes were sold in the first nine months of 2026, broadly unchanged from a year earlier. The festive quarter has been the year’s strongest for four consecutive years, yet sales in that quarter were virtually unchanged year-on-year in 2025. With prices still rising year-on-year in every market, terms are an easier lever than a price cut.

The financial commitment has also grown. Homes above Rs 1 crore accounted for approximately 56% of September-quarter sales, against 16% of annual sales in 2018. Rising prices explain part of this shift, but so does the willingness to pay more for a home that meets changing needs and aspirations. At these ticket sizes, a gift is a relatively small benefit. What matters more is how much is paid before construction progresses; how certain possession is and how much liquidity the household retains. Even a buyer with funds in hand may prefer to commit them in stages, limiting financial exposure as well as managing cash flow.

Flexibility has its limits

At lower ticket sizes, payment flexibility matters more because household budgets leave less room to adjust. September-quarter sales fell 12% year-on-year for homes below Rs 50 lakh and 8% for those between Rs 50 lakh and Rs 1 crore.

The RBI’s decision to raise the repo rate by 25 basis points to 5.50% its first increase since February 2023 adds to the pressure. The accompanying shift from a neutral stance to calibrated tightening makes flexible payment terms more relevant but does not make borrowing cheaper. For households whose floating-rate loans reset upwards, a smaller booking amount can ease the initial outlay without reducing the repayment burden. It can help buyers manage when they pay but cannot close a gap between income and the cost of ownership.

That is the distinction between flexibility and affordability. A payment schedule that fits a family’s finances is useful; one that merely postpones an unaffordable commitment is not. Similarly, a pre-EMI holiday should be assessed by who bears the interest and the total amount payable, not simply how long payments can be deferred.

Even the booking amount needs context. Under RERA, a developer cannot accept more than 10% of the property cost before entering into and registering an agreement for sale. An advertised 10% booking amount should therefore not, on its own, be presented as an exceptional concession.

I would go further: every festive offer should disclose the total acquisition cost under that payment plan, with financing assumptions and exclusions clearly stated. The purpose of flexibility should be to make a purchase easier to manage not its financial burden harder to see.

More choice changes the sales conversation

Developers have another reason to compete on terms. Unsold inventory across the eight markets stood at approximately 531,500 homes in September, up 5% year-on-year. Above Rs 1 crore, inventory rose around 20% while sales rose approximately 7%. In the Rs 2–5 crore band, stock grew 37% against sales growth of 20%.

These numbers do not, by themselves, establish an overhang. They do show that unsold stock is increasing faster than sales in an important premium category. When buyers can compare several similar projects, a workable payment schedule becomes a real point of difference. A good layout, visible construction progress, reasonable maintenance costs and a dependable handover date must still justify the purchase. Flexibility cannot rescue a poor product.

But buying a home is not only a financial calculation. For first-time buyers especially, it is a deeply personal milestone, and the festive season offers an auspicious occasion to act on a long-held aspiration. Thoughtful payment terms can help families take that step with greater financial confidence.

Developers who understand both sides of the decision – the desire to own and the financial confidence needed to proceed, will be better placed to convert festive interest into purchases. Gifts can add to the celebration. A well-designed home on workable terms can give a family a reason to commit, making the festive season more rewarding for buyer and developer alike.