India's Unwavering Love for Real Estate: A Cultural and Emotional Journey
Owning a home in India is more than just a financial investment; it's a cultural, emotional, and spiritual legacy. Explore the deep-rooted reasons behind this passion for real estate.
Real EstateHomeownershipIndian CultureProperty InvestmentTax IncentivesReal Estate MaharashtraOct 12, 2025
Legacy Over Liquidity
In many Indian households, a home is the only tangible inheritance passed down through generations. We often hear stories of ancestral homes that have stood for over a century, becoming a family's identity. In Kolkata’s Shobha Bazar, a 120-year-old mansion still houses five generations under its roof. It has weathered Partition, political upheavals, and latter-day redevelopment offers, but the owners refuse to part with it. “This home is our history,” the octogenarian matriarch says.
According to the 2023 ANAROCK report, 68% of Indian homebuyers are end-users, and a whopping 80% plan to pass on their property to their children. Unlike supply/demand and pricing, such data does not tend to change — it represents the psyche, not the market. It reaffirms that in India, real estate is not just about investment but also about legacy.
Culturally Conditioned
In Western economies, renting is often seen as practical and flexible. In India? Not so much. To many, paying rent is akin to feeding a black hole — money is exiting pockets without building any equity. On the other hand, property is seen as a store of value. A 2022 RBI survey on household finances revealed that real estate comprises nearly 77% of total household wealth in India, compared to just 35% in the US.
A 30-something IT professional in Pune, despite having access to good company housing, chose to purchase a INR 1 crore apartment. “Renting feels like bleeding money every month,” he says. “At least, EMI gives me ownership.”
Indian Mindset
Stock markets? Risky. Mutual funds? Volatile. Crypto? “Beta, gambling mat kar.” Despite being illiquid and slow to appreciate in some areas, real estate is seen as safe, tangible, and immune to overnight collapse. During the 2008 global financial crisis when property markets in the West plummeted, India’s top 7 cities saw only a marginal dip and prices largely held firm due to low system leverage and strong end-user demand.
Even during COVID-19, Indian real estate demonstrated remarkable resilience. By 2023, the sector had bounced back and witnessed record-high launches and sales, with over 4.76 lakh units sold across the top cities. In the West, buying property is largely a 'head', not a 'heart' thing. People buy it when 'it makes sense'. In India, not buying property when you can - and sometimes even when you can't - makes no sense. Indians buy property 'from the heart' and apply their full minds to make it happen.
Tax Incentives and EMI
Over the years, the government has consistently incentivised homeownership. Subtly, and intelligently - no seductively low lending rates that suddenly turn savage (read sub-prime crisis) here. Section 80C and 24(b) tax benefits for home loans on principal and interest repayment. PMAY and stamp duty rebates for first-time buyers in various states. Enhanced interest deduction under Section 24(b) – Union Budget 2025 raised this to INR 3 lakh from INR 2 lakh for self-occupied homes. Interest subsidies under PMAY-CLSS ranging between 3-6.5% for various income levels on home loans up to specified limits. Some states also provide first-time buyers relief of stamp duty and registration fees. These incentives lower the cost of and encourage homeownership. Combined with the emotional push from parents and easy access to home loans, buying becomes the default choice.
Renting is for those who are getting ready to buy. After COVID-19, even die-hard renting millennials with a 'Western mindset' hangover, have become convinced buyers. According to SBI’s 2023 home loan portfolio, over 70% of their retail lending is to salaried individuals aged 30–45, often first-time homeowners.
Social Status
Let's be honest. In India, owning a home is also about perceived stability and social standing. Whether arranged marriage matchmaking or Diwali card parties, “Do you own your place?” is more than a casual question — it is a character certificate. In Delhi NCR, a marketing manager candidly admitted, “When I was on matrimonial sites, I noticed matches improved once I put ‘owns a 2BHK in Gurgaon’ on my profile.”
Frequently Asked Questions
Why is owning a home so important in Indian culture?
Owning a home in India is deeply rooted in cultural, emotional, and spiritual values. It is seen as a tangible inheritance and a symbol of stability and social standing.
What percentage of Indian homebuyers are end-users?
According to the 2023 ANAROCK report, 68% of Indian homebuyers are end-users, and 80% plan to pass on their property to their children.
How does the Indian mindset towards real estate differ from Western perspectives?
In India, real estate is seen as a safe, tangible, and emotionally significant investment. In contrast, Western economies often view renting as practical and flexible.
What are some government incentives for homeownership in India?
Government incentives include Section 80C and 24(b) tax benefits, PMAY and stamp duty rebates, enhanced interest deduction under Section 24(b), and interest subsidies under PMAY-CLSS.
How has the real estate market in India performed during economic downturns?
During the 2008 global financial crisis and the COVID-19 pandemic, Indian real estate demonstrated resilience, with prices holding firm and record-high launches and sales in 2023.
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