How Do Other Industries Affect the Real Estate Industry?

Sujan Afi S

In reality, we all are dependent on each other. Can you imagine your days without food or water? No, right? Where does that food come from? The farmers grow them. If the food is not processed, packed, and sent to the market, will you be able to buy it? No. Or you might say that it is hard to determine.

Similarly, the real estate industry is also dependent on several other industries. They too are dependent on the real estate industry. In this blog, we are going to discuss some of the industries that affect the real estate industry directly. So, brace up, and stay tuned!

What is Real Estate Property?

real estate property can be roughly considered to be the piece of land that holds houses, buildings, or any other structure. It further includes the living and non-living organisms/things attached to the land. It would include the air rights above the land and the underground rights below the land too.

Some of the industries affecting the real estate industry are the construction industry, finance industry, transportation, tourism industry, etc. Let’s discuss them one by one.

How Does the Construction Industry Affect the Real Estate Industry?

Construction is the building/making of any structure. Thus, a property needs to be constructed. If there is a setback in the construction industry due to any reason, then the real estate industry gets affected. Why? Because, if there is no construction, then people won’t be able to buy any property. If people do not buy properties, the real estate industry will crash down! This will also affect the lives of common people. Suppose, a bridge needs to be constructed over a river. But, due to some reasons, the work did not progress. Won’t that affect your life?

Again, if a building is built maintaining the norms of a greenhouse building technology, then it has a higher chance of getting sold. Who doesn’t want to live in a healthy atmosphere?

Therefore, you see that the construction industry has a direct impact on the real estate industry.

How Does the Finance Industry Affect the Real Estate Industry?

Money is needed for a better living. We need money to buy food, clothing, and shelter. So, if we don’t have money then we won’t be able to buy a property. The Indian government sets aside a fixed budget for the housing and the construction of such structures. What if that was not there? Then we would have to face a huge problem. India is still not a county where every person can build a house for his/her family. Hence, the government has brought several schemes like PMAY. Thus, people can have affordable homes for themselves. Whoever builds a house/structure (the government or any individual), the benefit is of the real estate industry only. Why? Because when a real estate property is constructed and used, the real estate industry has some monetary benefits. Thus, we see that the finance industry has a direct influence on the real estate industry.

How Does the Transport Industry Affect the Real Estate Industry?

There are several things or products that we need to import from other places. There comes the importance of a smooth route. Suppose, you need a wood that is found in some other state. Then the price of the wood will increase. Why? Because the seller will charge the transportation cost from you too. Again, if the time taken to bring a particular product is less, the price of that product will be less. Now, if the price taken to construct a real estate property is more, the overall price of the property will be more.

Further, we tend to buy a property in a good locality. If the house is located in a remote area, then we expect the price of the property to be less. Why? Because we will face problem in transportation. We will not get good social services. Thus, we see that transportation also affects the real estate industry to a great extent.

How Does the Tourism Industry Affect the Real Estate Industry?

We go to visit several places because of the aesthetic beauty of those places. Right? When an area is a hotspot for tourists then that place needs constant renovation. Else, the tourists will not get attracted.

Further, there are several websites like,, etc. where the landlords can advertise their houses and the tourists can rent them for their short vacation. Thus, the old houses are also getting renovated. Further, new hotels and restaurants are also being built. All these contribute much to the real estate industry.

Taking Everything Into Account

Each industry is dependent on the other. That is why when there is a setback in any industry, the entire system gets disturbed. In this article, an attempt has been made to highlight how some of the industries affect the real estate industry. I hope that I have been able to explain to you that to some extent. However, this is not the end. Several other industries are affecting the real estate industry to a great extent.

Some concepts and topics related to real estate are difficult for a layman to understand. We understand that. Hence, we are there to help and guide you in the right direction. Drop a mail at to get any kind of assistance. We will be more than happy to help you and solve your problems. Further, visit our Real Talks platform to read more informative articles related to the real estate industry. We will meet soon with another interesting topic. Till then keep sharing this blog if you find it useful!


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