NEW DELHI: Realtors’ bodies CREDAI and NAREDCO on Monday said developers have started to feel the pinch of the ongoing conflict in West Asia due to the short supply of some building materials, and said construction costs could rise if tensions continue for a longer period.
The two associations, together representing around 20,000 developers, also expressed concern about possible delays in the completion of real estate projects due to likely shortages of construction materials.
Both, CREDAI National President Shekhar Patel and NAREDCO President Parveen Jain said the input cost could rise if war persists for longer period, resulting in an increase in housing prices as well.
“The Indian real estate sector remains largely stable despite the evolving geopolitical situation, with no significant impact on construction activity as most key raw materials are manufactured domestically,” Patel said.
At present, he pointed out that some temporary supply chain disruptions are being observed due to global energy volatility.
“Certain clusters, such as the marble and tile manufacturing hub in Morbi, Gujarat, are experiencing short-term challenges owing to fuel supply constraints and elevated logistics pressures. These, however, are transitional in nature. If the situation persists for a month or longer, it may begin to reflect in input costs, leading to a gradual impact on overall pricing,” Patel said.
Jain, President of NAREDCO, said the ongoing tension in the Gulf region is now beginning to reflect in the real estate sector, mainly through shortages in construction materials and a rise in their prices.
“Key materials such as steel, PVC products, wires, pipes, and even glass are currently in short supply. In addition, segments like ceramic manufacturing have been impacted due to fuel-related challenges,” he added.
“If the conflict continues for a longer period, it could lead to further increases in construction costs and may affect project timelines,” Jain said.
The NAREDCO President said that developers are trying to manage these rising costs as much as possible.
“However, continued pressure on input costs may eventually reflect in project pricing. Stability in international markets, along with supportive policy measures, will be important to keep the sector on track,” Jain said.
Housing sales across India’s top 50 cities fell 3 per cent last year to 6.14 lakh units while it rose 16 per cent value-wise to Rs 8.46 lakh crore, according to CREDAI and Liases Foras.
