West Asia Conflict Escalates Costs in India's Real Estate Sector

The ongoing conflict in West Asia is putting financial pressures on India's real estate sector. Material prices are rising, potentially leading to a 5% increase in construction costs by April. Industry leaders express concerns over project delays and economic repercussions as steel and other material costs surge.

The escalating conflict in West Asia is driving up costs in India's real estate sector, industry experts have warned. Rising material prices could lead to a 5% increase in construction costs if hostilities continue past April.

Harshavardhan Neotia, Chairman of Ambuja Neotia Group, highlighted the 'classic cost-push cycle' affecting real estate, noting significant increases in crude oil and natural gas prices. This has already impacted steel, logistics, and petrochemical-linked materials.

The industry is bracing for further challenges, with potential project delays and broader economic impacts if the situation persists. Construction steel prices have surged significantly, and while cement remains relatively stable, demand pressures are evident.

(With inputs from agencies.)