Improvement in Real Estate Customer Conversion Rates Post-COVID-19

by Vicky Kaushal Digital Marketer

While the economy is shaken with the unfortunate arrival of the COVID-19 pandemic impacting every industry. But to the surprise, the developers in the real estate industry got to face the unexpected but pleasant reality. The client conversion rates went upward as they improved following the pandemic.

As per the market scenario and industry’s expert it was evident that when the cases were rising and the lockdown was implemented, it was observed that the footfall of home buyers reduces drastically to 35%-40% of pre-COVID-19 levels. But still, property for sale witnessed substantial improvement in the transaction rate or strike rate. Earlier when over 100 odd leads and site visits, there were only 3-4 buyers but post- pandemic came out to be the same over just 40 odd leads and site visits. It has lead to lower marketing and manpower costs as the market was having real buyers hunting for residential property.

In these hard times, there was improved quality of leads in the business as only the serious buyers went for digital engagement substantially and were coming forward for site visits, while the non-serious property seekers preferred to stay at home, stay safe.

Why Customer Conversions In Real Estate Have Improved?

There are several drivers and aspects for this turnaround and higher sales conversion, pent-up demand being one major reason. The concept of Work from Home has made people realize the importance of buying a home. And that is what improved in conversion in a real estate speed up. The home loan rates are also low fueling up the speed of home buying.

The interest subsidy under the Pradhan Mantri Awas Yojana (PMAY), can bring the effective interest rate below 5%, which is marginally higher than the residential rental yield of 3%- 4%.

Is This A Good Time To Invest In Property?

As the pandemic has made us understood the worth of owning a home and kept us indoors than ever before. Thus, buying properties to settle down or as an option for future investment has also made way for serious buyers. The happy realization of having a privately owned home that is coupled with many rewarding deals offered by builders has also boosted the real estate.

The Buyers Are Seeking As per experts of the industry, multiple factors have contributed to taking the conversation rate higher. Homebuyers are in a much better position now, to take a call on high-value transactions like real estate.

The property buyer is now spoilt for choice and became choosy at the same time. Hence, the ready-to-move-in properties are seen having rising demand, allowing the buyer to attain high satisfaction of value for money and security to the home buyer.

In the end, the developers of the real estate industry are in an advantageous position, with better quality of leads, lower cost of conversion, and higher conversion rates.

FAQs

What is the conversion rate in real estate?

Conversion rate is the percentage of leads that move forward to buy properties.

What does a high conversion rate mean?

A high conversion rate means that successful marketing and made to actual sales.

How much is residential rental yield?

Residential real estate Rental yield is typically between 3% and 4%.