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Property buying time in India
Average Property Buying Time Drops to 26 Days
In an encouraging sign for the Indian real estate market, the average property buying time in India has reduced to just 26 days in the first half of the current fiscal year (H1 FY25). This is a notable decrease from the highest average of 33 days recorded in FY 2021, as per a recent report released on Monday. The reduction in lead-to-conversion time is attributed to growing disposable incomes and sustained economic growth, which have bolstered housing as a favored investment option.
Ultra-Luxury Homes Lead the Trend
Ultra-luxury homes, priced at Rs 3 crore and above, have seen the fastest conversion time in H1 FY25, averaging only 15 days. This marks a significant improvement from the 22 days recorded in FY24, showing a week-long reduction. The faster sales in this segment reflect a strong appetite for premium real estate, driven by wealthy buyers who are financially capable of making rapid decisions.
Anuj Puri, Chairman of Anarock Group, stated, “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.” This quick turnover demonstrates the current strength of the property buying time in India, particularly in the high-end market.
Mid-Range and Affordable Housing Conversion Times
While ultra-luxury homes witnessed the fastest conversion rates, properties priced between Rs 50 lakh to Rs 1 crore had the slowest lead-to-conversion time, averaging 30 days. Meanwhile, homes priced between Rs 1 crore and Rs 3 crore recorded an average conversion time of 27 days in H1 FY25.
Affordable housing also saw a slight improvement. The time to purchase an affordable home reduced from 27 days in FY24 to 26 days in H1 FY25. Although this reduction is minor, it still reflects the growing momentum in the market and increased buyer confidence.
Historical Context and Data Analysis
The property buying time in India reached its lowest point at 25 days in FY 2019 and FY 2024. This suggests that while the current average of 26 days in H1 FY25 is an improvement compared to FY 2021, it is still slightly above the lowest figures historically recorded.
Anarock Group’s report highlights that Indian buyers are now better informed and more confident, especially when purchasing from well-established, branded developers. “The surge in new supply by reputed developers over the past few years has empowered buyers to make quicker decisions as trust in these developers is high,” the report noted.
Rising Demand and Economic Growth
The reduced property buying time in India can be partly attributed to robust economic activity, which has increased disposable income and fostered a more investment-friendly climate. Buyers are taking less time to close deals now compared to the peak of 33 days in FY21, which indicates a solid demand momentum in the market.
However, despite these improvements, Anuj Puri noted that further reductions in lead-to-conversion times might not be significant. “Even with these decreases in lead-to-buy periods, it is unlikely that we will see any marked incremental changes in this process overall,” he said. The underlying reason is that property purchases in India often involve significant financial commitment, requiring most or all of a buyer’s savings, making these decisions complex and carefully considered.
Conclusion
The overall drop in the property buying time in India to 26 days highlights the market’s vitality and buyers’ growing confidence. Ultra-luxury homes are selling the fastest, indicating high demand in the top-tier segment, while mid-range and affordable housing show gradual improvement. The reduction in conversion times underscores a positive trend in the real estate sector as it continues to recover and grow. Yet, given the significant capital investment involved, it remains unlikely that the buying process will speed up drastically beyond current levels.
The continued strength of the property buying time in India points to sustained economic confidence and a thriving real estate market. With trusted developers offering new projects, buyers now feel more assured in making quicker decisions, positioning the sector for continued stability and growth.
Disclaimer: This content is for informational purposes only and reflects recent data and trends in the Indian real estate market. It should not be taken as financial or investment advice.
