India’s real estate and construction sector is witnessing a sharp rise in construction costs as ongoing global geopolitical conflicts disrupt supply chains, increase fuel prices, and impact raw material availability. Developers have warned that project costs in some segments have increased by nearly 20–25%, creating pressure on margins and project timelines.

Industry leaders stated that prices of key construction materials such as steel, cement, aluminium, copper, bitumen, and imported components have risen significantly over recent months. Higher logistics and transportation expenses due to rising crude oil prices are also adding to overall construction costs.

Developers are increasingly concerned about possible shortages of raw materials and equipment if global conflicts continue to disrupt international trade routes and supply chains. Experts noted that delays in imports and fluctuating commodity prices could affect ongoing residential, commercial, and infrastructure projects across India.

The rising costs are also putting pressure on housing affordability, especially in mid-income and affordable housing segments where developers have limited pricing flexibility. Some companies may delay launches or revise project pricing if cost pressures continue over a longer period.

Key Highlights

• Construction costs reportedly rise by up to 20–25%
• Global geopolitical conflicts disrupting supply chains
• Rising fuel prices increasing logistics expenses
• Prices of major materials witnessing sharp increase:
  • steel
  • cement
  • aluminium
  • copper
  • bitumen
• Developers warn about possible raw material shortages
• Project execution timelines may face pressure
• Affordable and mid-income housing segments most affected
• Rising costs could impact housing prices and affordability
• Industry monitoring global trade and energy market developments closely

Industry experts believe prolonged geopolitical instability could continue impacting India’s construction and real estate sectors through higher input costs, supply disruptions, and slower project execution in the coming months.

 Original Report Source (Published by Realty):

https://realty.economictimes.indiatimes.com

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