New Delhi, March 23 The real estate associations, CREDAI and NAREDCO, said on Monday that developers are starting to feel the impact of the ongoing conflict in West Asia due to the short supply of some building materials, and that construction costs could rise if tensions continue for a longer period.
The two associations, which represent around 20,000 developers, also expressed concern about possible delays in the completion of real estate projects due to the likely shortage of construction materials.
CREDAI National President Shekhar Patel and NAREDCO President Parveen Jain both said that input costs could rise if the war persists for a longer period, leading to an increase in housing prices.
"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.
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. However, these 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.
NAREDCO President Parveen Jain said that 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.