• The Indian real estate market is seeing a shift with property conversion time reducing to an average of 26 days.
• Ultra-luxury homes, priced at Rs 3 crore and above, have the shortest conversion time of 15 days.
• Homes priced between Rs 50 lakh to Rs 1 crore took the most time to convert (30 days).
• This reduction in property conversion time indicates a strong demand for housing, particularly in the ultra-luxury segment.

The Indian real estate market is witnessing a significant shift. The conversion time to buy a property in India has reduced to an average of 26 days in the first half of this fiscal year (H1 FY25), a decrease from a peak of 33 days in FY 2021.

This change is attributed to the growing preference for housing as an investment option, spurred by increasing disposable incomes and robust economic activity in the country.

Interestingly, ultra-luxury homes, priced at Rs 3 crore and above, have seen the shortest conversion time, clocking in at just 15 days in H1 FY25. This is a significant reduction from the 22 days recorded in the last fiscal year (FY24), indicating a whole week's reduction in conversion time. This trend is supported by data from Anarock Group, a leading real estate services company.

The Chairman of Anarock Group, Anuj Puri, explained this trend, stating, Ultra-luxury home 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."

Varied Conversion Times Across Price Segments

The data also revealed that homes priced between Rs 50 lakh to Rs 1 crore took the most time to convert (30 days), while homes priced between Rs 1 crore to Rs 3 crore saw an overall conversion time of 27 days in H1 FY25. The lead-to-conversion time, which is the time from the first lead to actual booking, was at its lowest at 25 days in FY 2019 and FY 2024.

Affordable homes also saw a minor reduction in the conversion time - from 27 days in FY 2024 to 26 days in H1 FY 2025. This indicates that buyers are taking less time to book homes today than they did in FY21, reflecting the strong demand momentum currently seen in the market.

The report also highlighted that the surge in new supply by branded developers in recent years has empowered buyers to make quicker decisions, as their confidence in these players is high. However, Puri cautioned that despite these decreases in lead-to-buy periods, it is unlikely that there will be any marked incremental changes in this process overall.

The Impact of Economic Trends on Real Estate

It's important to note that Indian home buyers do not make purchase decisions lightly, given the huge capital outlay often involving most or all of their savings. This trend of reduced conversion time is a testament to the growing confidence of buyers in the real estate market and the robustness of the Indian economy.

This development in the real estate sector is in line with the broader economic trends in India. The country's economy has been on a growth trajectory, with increasing disposable incomes and robust economic activity. The government's focus on infrastructure development and housing for all has also contributed to the positive sentiment in the real estate market.