Rising material prices, labour shortages and supply disruptions strain India’s real estate sector..

Construction Costs Surge 25% Amid Global Conflicts, Developers Seek Relief.

Construction costs in India have increased by over 25% since global conflicts began, severely impacting the real estate sector, according to industry leaders and CREDAI. Supply chain disruptions, labour migration, higher energy prices and shortages of key materials like aluminium and glass have strained project viability and timelines. Vikas Oberoi of Oberoi Realty highlighted that rising input costs and material availability challenges are stressing the entire industry. Developers warn that non-availability of critical materials, not just price escalation, is delaying project completion. Labour shortages, exacerbated by regulatory bans and elections, remain another major hurdle, as noted by Signature Global, which is exploring technology to mitigate workforce gaps. While rising costs threaten commercial viability, experts like Parvinder Singh of Trident Realty believe this phase could push organised players to adopt more resilient, technology-driven strategies. CREDAI has approached the Union Housing Ministry seeking RERA timeline relief to safeguard developers and homebuyers.