Rising material shortages and energy volatility threaten project timelines and housing affordability.

West Asia Conflict May Push Up Construction Costs and Home Prices: CREDAI–NAREDCO.

India’s real estate sector may face higher construction costs and housing prices if the West Asia conflict continues, according to realtors’ bodies CREDAI and NAREDCO. Developers are beginning to feel pressure from shortages of key building materials such as steel, PVC products, wires, pipes, glass, and ceramics. CREDAI National President Shekhar Patel said the sector remains largely stable since most raw materials are domestically produced, though temporary disruptions have emerged due to global energy volatility. Certain hubs, including Morbi’s tile and marble cluster, are facing short-term fuel and logistics challenges. NAREDCO President Parveen Jain warned that prolonged conflict could raise input costs, delay project completion, and eventually reflect in home prices. Despite these risks, developers are attempting to absorb costs. Meanwhile, housing sales dipped 3% in volume last year but rose 16% in value, as per CREDAI and Liases Foras.