News: Credai, Naredco Warn of Costlier Inputs If Gulf War Drags-23-03-2026
Developers’ bodies Credai and Naredco have cautioned that a prolonged US-Iran war could raise construction costs, as higher fuel and freight charges make materials such as steel and tiles more expensive. That could delay projects and push up home prices. The two associations, which together represent around 20,000 developers, also fear delays from likely material shortages.
Parveen Jain, president, NAREDCO, said the tension in the Gulf is beginning to show in the sector through shortages and price increases. Steel, PVC products, wires, pipes and even glass are in short supply, he said, and ceramic manufacturing has been hit by fuel-related problems. A longer conflict could raise costs further and affect timelines.
Shekhar Patel, national president of Credai, said the sector remains largely stable and construction activity has seen no significant impact because most key raw materials are made domestically. He said only temporary supply chain disruptions are visible. Clusters such as the marble and tile hub in Morbi, Gujarat, face short-term difficulties from fuel supply constraints and logistics pressures, which he called transitional. If the situation lasts a month or longer, he said, it may begin to reflect in input costs and gradually in pricing.
An earlier Anarock analysis said the Strait of Hormuz blockade since early March had raised material costs and the risk of delayed or stalled projects, with developers likely to raise luxury housing rates by over 5%.
