The housing market in Diu offers a charming juxtaposition of old and new. In the heart of the town, residential architecture is heavily influenced by Portuguese colonial design, featuring brightly painted homes with wooden balconies, inner courtyards, and red-tiled roofs.
Outside the historic center, housing transitions to modern apartments, modest single-family homes, and coastal cottages. Rental costs and everyday home prices are generally affordable by national standards, making it an attractive location for retirees. However, land scarcity on the island and high demand for commercial tourist properties have driven up the prices of coastal real estate. The local government has undertaken various initiatives to ensure adequate sanitation and affordable housing for the local fishing communities.