The Deep-Rooted Passion for Property Ownership in India
Explore the cultural, emotional, and financial reasons behind India's enduring love affair with real estate. From legacy to social status, discover why owning a home is more than just an investment.
Real EstateProperty OwnershipIndian CultureHome BuyingTax IncentivesReal Estate PuneMay 29, 2025
What lies behind this deeply embedded love affair with property? We can partially decode it through anecdotal examples, data, and a look into the Indian psyche.
Legacy Over Liquidity: Property as a Multigenerational Asset
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 a 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 — “Rent is Rinse Money”
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 values. 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.”
The ‘Indian Mindset’ of Safety: Real Estate as a Hedge
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 Culture: Government’s Subtle Nudge
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. 1% GST on under-construction affordable homes, as opposed to 5% on others.
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.
The Social Status and the “Log Kya Kahenge?” Factor
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.”
Urbanisation and the Fear of Missing Out (FOMO)
India is urbanising like there’s no tomorrow – nearly 42% of the population is expected to live in urban areas by 2035, from 34% in 2022. Property prices are tracking this trend, on steroids. With this comes a deep-seated fear – if I don’t buy now, I may never be able to afford it. According to ANAROCK Research, the average ticket size in Mumbai increased from INR 1.5 crore in 2020 to INR 2.15 crore in 2024. The thought of being ‘priced out’ spurs younger buyers into early action, even if it means stretching finances.
Real Estate as a Second Income
Unlike earlier generations, modern Indians don’t just buy to live — they buy to earn. From co-living spaces to short-term rentals on platforms like Airbnb and Stanza Living, property is an income generator today. Fractional ownership in commercial real estate is booming among HNIs and NRIs eyeing INR 10–25 lakh investments that can yield 8–10% annual returns. Platforms like Strata and hBits are seeing exponential growth.
Not Just Bricks and Mortar
The quintessential Indian love affair with real estate is an emotional investment cloaked in rationality. It is about stability, status, security, and sometimes, just a sense of having ‘arrived’ in life. To paraphrase the slogan of a Mumbai-based architect, we don’t buy homes in India. We write our stories – one EMI at a time.
Frequently Asked Questions
Why is property ownership so important in Indian culture?
Property ownership in India is deeply rooted in cultural, emotional, and financial values. It is seen as a tangible inheritance, a store of value, and a symbol of stability and social standing.
What are the main factors driving the Indian real estate market?
Key factors include the cultural preference for owning property, government incentives, urbanization, and the fear of missing out (FOMO) on rising property prices.
How does the Indian government encourage homeownership?
The government provides tax benefits, stamp duty rebates, and interest subsidies for home loans, making homeownership more accessible and affordable.
What role does social status play in property ownership in India?
Owning a home is often associated with social status and perceived stability, influencing decisions in areas like arranged marriages and social interactions.
How has the real estate market in India evolved in recent years?
The market has shown resilience, with record-high launches and sales, even during economic downturns. Modern Indians are also using property for additional income through co-living spaces and short-term rentals.
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