NEW DELHI: The ongoing West Asian conflict is starting to affect Indian real estate, as industry bodies CREDAI and NAREDCO report rising construction costs due to shortages in some building materials. They expressed concerns over potential delays in project completions caused by these constraints.
According to CREDAI National President Shekhar Patel and NAREDCO President Parveen Jain, if the conflict continues, the input costs could rise, inevitably pushing up housing prices as well.
“The Indian real estate sector remains relatively stable despite geopolitical tensions, as most raw materials are sourced domestically,” said Patel. However, he noted some temporary supply chain disruptions are emerging from global energy volatility.
Specific manufacturing hubs, like the marble and tile cluster in Morbi, Gujarat, are struggling with short-term challenges linked to fuel supply and logistics. “If this situation persists for over a month, it may start to impact input costs, leading to higher overall prices,” added Patel.
Jain, meanwhile, pointed out that the Gulf tensions are beginning to show their impact on the real estate sector, primarily through material shortages and price hikes. “Essential materials like steel, PVC products, wires, pipes, and glass are currently in limited supply, and ceramic manufacturing is also affected due to fuel-related issues,” he explained.
“Should the conflict extend, we may see further increases in construction costs and additional delays in project timelines,” Jain warned. He also mentioned that developers are attempting to manage these rising costs, but persistent pressure may reflect in project pricing. “Stability in international markets and supportive policies are crucial for keeping the sector on track,” Jain added.
Notably, housing sales in India’s top 50 cities dropped by 3% last year, totaling 614,000 units, while the value surged by 16% to ₹8.46 lakh crore, as per CREDAI and Liases Foras.
