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Construction Costs, Home Prices May Rise If West Asia Conflict Continues: CREDAI and NAREDCO

  • by- Grihik
  • Mar 24, 2026
Real estate bodies CREDAI and NAREDCO have warned that prolonged West Asia tensions could lead to higher construction costs and home prices as shortages of steel, PVC, wires, and glass emerge across the sector.
Construction Costs, Home Prices May Rise If West Asia Conflict Continues: CREDAI and NAREDCO

New Delhi, March 24, 2026: 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 warned that 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.

Impact on Construction Materials

Shekhar Patel, CREDAI National President, stated that 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. However, 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. 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.

Parveen 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.

Potential Impact on Home Prices

Both industry leaders agreed that input costs could rise if the war persists for a longer period, resulting in an increase in housing prices as well. Jain noted that developers are trying to manage these rising costs as much as possible, but 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.

Housing Market Performance

According to CREDAI and Liases Foras data, housing sales across India's top 50 cities fell 3 percent last year to 6.14 lakh units, while value-wise sales rose 16 percent to Rs 8.46 lakh crore.