Shorter Lead-to-Buy Conversion Times Reflect Strong Demand Across Price Segments

Mumbai, 11 November 2024: In India’s bustling real estate market, buyers are accelerating their home purchase decisions faster than ever, according to the latest data from ANAROCK. The report shows that the average lead-to-buy conversion time — the period from first inquiry to confirmed booking — has shortened to 26 days in H1 FY2025. This marks a notable decline from the peak 33-day conversion rate observed during the pandemic in FY2021, reflecting a heightened confidence among buyers and a demand surge in various housing segments.

Trend Overview: Shorter Decision Times Reflect Market Confidence

In FY2019 and FY2024, the conversion time hit a low of 25 days, and H1 FY2025 maintains a similar pace with only a slight uptick to 26 days. This trend underscores an overall confidence boost in the residential market, despite a marginal increase in conversion times compared to the previous fiscal year.

“Indian home buyers don’t make purchase decisions lightly,” notes Anuj Puri, Chairman of ANAROCK Group. “While ultra-luxury buyers move faster due to strong financial backing, the broader market, including affordable and mid-range segments, is where sustained demand defines the buying momentum.”

Ultra-Luxury Segment: Fastest Conversions as Demand Soars

A closer examination reveals that the ultra-luxury segment (homes priced above INR 3 crore) records the fastest lead-to-buy conversion at just 15 days in H1 FY2025, down from 22 days in FY2024. This swift decision-making is primarily due to the high desirability of inventory and the financial flexibility of affluent buyers.

“Ultra-luxury buyers are in a position to make swift decisions,” says Puri. “With demand high, particularly for premium properties, these buyers aren’t waiting around, ensuring they don’t miss out on desirable units.”

Mid-Range and Affordable Housing: Slight Increases in Conversion Times

For homes priced between INR 50 lakh and INR 1 crore, buyers currently take around 30 days to convert an inquiry into a purchase. This represents a longer decision window compared to the ultra-luxury segment, as mid-range buyers often need to consider budget constraints and financing options.

In contrast, buyers of homes priced between INR 1 crore and INR 3 crore are averaging a 27-day conversion period in H1 FY2025. Within this segment, homes priced between INR 1 crore and INR 2 crore saw an earlier peak of 32 days in FY2024, while homes in the INR 2 crore to INR 3 crore range took approximately 26 days.

Affordable Homes: Stable Decision Window

For homes priced below INR 50 lakh, conversion times showed minimal fluctuation, moving from 27 days in FY2024 to 26 days in H1 FY2025. This stability indicates that demand for affordable homes remains strong, with buyers confident in their purchasing decisions despite rising property prices in major cities.

Shifts in Buyer Behavior Post-Pandemic

The gradual reduction in conversion times since FY2021 suggests a robust recovery in buyer confidence post-pandemic. Increasingly, buyers appear more decisive, likely influenced by a surge in new supply from branded developers. This added inventory, combined with reputable developers, has increased buyers’ trust in the market, allowing them to make faster choices with greater confidence.

“Even with these decreases in lead-to-buy periods, we don’t expect dramatic further declines,” Puri adds. “While luxury buyers face fewer financial constraints, the mid-range and affordable segments, which make up the majority of India’s residential demand, tend to follow a steadier decision cycle. That said, the trend of shorter lead times underscores the market’s resilience and the high trust buyers have in quality developers.”

This compression in lead-to-buy conversion times across price segments indicates a vibrant market for residential real estate in India, one where demand remains high, and buyer confidence is reinforced by the presence of trusted developers. With the upward momentum in real estate likely to continue, prospective buyers may need to act even faster in an increasingly competitive landscape.