Kolkata, April 1 The escalating conflict in West Asia is beginning to put pressure on India's real estate sector, with material prices rising, and industry leaders warning of a potential 5 per cent increase in construction costs if the hostilities continue through April.
Construction schedules are also likely to be affected due to shortages of materials and resources if the conflict continues.
Harshavardhan Neotia, Chairman of Ambuja Neotia Group, said the crisis is triggering a "classic cost-push cycle" for real estate, with crude oil prices moving from sub-USD70 levels in February to well above USD 110–120 per barrel in March, and natural gas witnessing sharp increases.
"We are already seeing this pressure across steel, logistics, and petrochemical-related materials. If this continues, construction costs could rise significantly over the next 1–2 quarters, which could affect pricing going forward," Neotia said.
Sushil Mohta, President of CREDAI West Bengal and Chairman of Merlin Group, struck a more immediate note of caution.
"If the war continues in April, the cost of construction will increase by 5 per cent immediately. Construction schedules will also be disrupted due to shortages of building materials," he told