Housing in Agatti is dense, heavily concentrated in the central and northern parts of the island to leave the southern tip clear for the aerodrome. Traditional homes were historically constructed using coral stones and thatched coconut leaves, but modern housing predominantly features concrete blocks, cement, and tin or tiled roofs to better withstand monsoonal weather.
The real estate market is virtually non-existent for outsiders. Under local laws designed to protect indigenous populations and land rights, non-residents are strictly prohibited from purchasing property in Lakshadweep. For locals, land is passed down through generations, and housing plots are becoming increasingly constrained due to population growth on the limited landmass.