- Lead-to-buy conversion was at its lowest in FY 2019 & FY 2024 – up by a day in H1 FY2025
- Conversion time was at its highest at 33 days in COVID year FY 2021
- Conversion time is lowest (15 days) for ultra-luxury homes priced >INR 3 Cr in H1 FY 2025 (22 days in FY 2024)
- Buyers of homes priced b/w INR 50 lakh to INR 1 Cr take the most time (approx. 30 days) to press the ‘buy’ button post first lead
- For homes priced b/w INR 1 Cr to INR 3 Cr, overall conversion time was 27 days in H1 FY 2025
Mumbai 11 November 2024: With housing emerging as India’s most-preferred investment option, the time it takes for property seekers to convert to buyers is a critical metric to gauge overall demand. Latest ANAROCK data indicates that this conversion time (from first lead to actual booking) is reducing steadily and stands at about 26 days in H1 FY2025, against the highest peak of 33 days in FY 2021.
The lead-to-conversion time was at its lowest at 25 days in FY 2019 and FY 2024. If we compare the current trends with those of a year ago, there is an increase of a day in H1 FY2025 – it was 25 days in FY 2024.
Days to Booking a House: Yearly Trends
Source: ANAROCK Research
A deeper analysis of the budget category data shows that ultra-luxury homes (priced >INR 3 Cr) involve the lowest conversion time, clocking in at just 15 days in H1 FY 2025. Back in FY 2024, it was 22 days – thereby reducing by a whole week.
Anuj Puri, Chairman – ANAROCK Group, says, “Ultra-luxury homes buyers are financially equipped to make quicker decisions. Also, high-end homes are currently in greatest demand and desirable inventory tends to sell out fast, necessitating a need for speed.”
Out of all budget categories, buyers of homes priced between INR 50 lakh to INR 1 Cr took the most time (about 30 days) to decide on buying a home from the day they first got a lead to paying the booking amount.
“In contrast, in FY 2024, the conversion time for this category of homes was the lowest at just 20 days,” says Puri. “However, if we compare H1 FY2025 data with that of the previous fiscal (FY2024), we note a slight increase in the conversion time – from 25 days in FY 2024 to about 26 days in H1 FY2025. We can attribute this to escalating property prices across cities in the last one year, which are causing purchase decisions to take longer “.
The conversion for homes priced between INR 1 Cr to INR 3 Cr stood at 27 days in H1 FY 2025. In FY 2024, conversion time taken was highest for homes priced between INR 1 Cr to INR 2 Cr (32 days). Properties priced between INR 2 Cr to INR 3 Cr took 26 days to be booked.
Affordable homes saw a minor reduction in the conversion time – from 27 days in FY 2024 to 26 days in H1 FY 2025.
Essentially, buyers took a longer time to book homes in FY2021 than they are taking today, reflecting the currently strong demand momentum. Given that the last few years have seen a surge in new supply by branded developers, buyers feel empowered to make quicker decisions as confidence in these players is high.
“Even with these decreases in lead-to-buy periods, it is unlikely that we will see any marked incremental changes in this process overall,” adds Puri. “Indian home buyers do not make purchase decisions lightly, given the huge capital outlay often involving most or all of their savings. Obviously, luxury and ultra-luxury home buyers do not operate from a place of financial constraint; however, this segment constitutes just about 10-11% of the overall Indian residential market sales currently. Affordable, mid-range – and, of late, upper-mid-range buyers will continue to define the bulk of demand in the country.
Also Read: Convenience ranks as a top priority for homebuyers while buying a home
