Ultra-luxury homebuyers move quick: Conversion time down to 15 days in 2025

 With housing emerging as a much-preferred investment option, the time it takes for property seekers to convert to buyers is a critical metric to gauge overall demand. Latest data from property consulting firm Anarock indicates that this conversion time (from first lead to actual booking) is reducing steadily and stands at about 26 days in the first half of FY2025, against the highest peak of 33 days in fiscal year 2021.

 

The lead-to-conversion time was at its lowest at 25 days in FY 2019 and FY 2024.

 

An alaysis of the budget category data shows that ultra-luxury homes (priced >Rs 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.

 

 

  "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," said Anuj Puri, Chairman - ANAROCK Group.

 

Out of all budget categories, buyers of homes priced between Rs 50 lakh to Rs 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," said 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 Rs 1 crore to Rs 3 Crore stood at 27 days in H1 FY 2025. In FY 2024, conversion time taken was highest for homes priced between Rs 1-2 crore.

 

 Properties priced between Rs 2 Cr to Rs 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. 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," added 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," he added.