Oberoi Realty Chairman and Managing Director Vikas Oberoi said the ongoing conflict in West Asia is increasing construction and labour costs in India’s real estate sector, putting pressure on developers and project execution timelines.

According to Oberoi, rising fuel prices, higher freight charges, and supply chain disruptions are increasing the cost of raw materials and labour movement. He estimated that construction costs could rise by nearly 2–3% if the geopolitical situation continues for a longer period.

Industry experts noted that materials such as steel, cement, aluminium, copper, and polymers are already witnessing price pressure due to global supply disruptions and rising logistics expenses. Developers across several cities are also facing concerns around project delays and shrinking margins.

Despite the rising costs, Oberoi Realty stated that its current projects remain financially stable due to built-in contingencies and disciplined project planning. However, developers may face increasing pressure if the conflict continues to impact energy prices and global transportation networks.

Key Highlights

• West Asia conflict increasing pressure on India’s real estate sector
• Rising fuel prices pushing up construction and logistics costs
• Labour movement and transportation expenses also increasing
• Construction costs may rise by around 2–3%
• Supply chain disruptions affecting raw material prices
• Materials under pressure include:
  • steel
  • cement
  • aluminium
  • copper
  • polymers
• Developers concerned about project delays and shrinking margins
• Oberoi Realty says current projects remain stable due to contingencies
• Industry monitoring impact of global geopolitical tensions closely

Experts believe prolonged geopolitical instability could impact housing prices, project timelines, and overall construction costs if supply chain disruptions continue in the coming months.

 Original Report Source (Published by HindustanTimes):

https://www.hindustantimes.com/

Disclaimer: The insights referenced above are based on the report published by HindustanTimes. Rooftr does not claim ownership of this research and is sharing it for industry awareness purposes.