India's Real Estate Sector Impacted by West Asia Conflict
The ongoing geopolitical tensions in West Asia, particularly the Iran-Israel conflict, have started to affect India's real estate sector.
Supply Chain Disruptions and Rising Input Costs
Developers are reporting delays in project completion due to supply chain disruptions and rising input costs.
Shortage of Tiles & Sanitaryware: A Critical Concern
- Industry stakeholders have warned about the shortage of key finishing materials such as tiles and sanitaryware.
- The shortage is driven by gas supply constraints, which have impacted the production of energy-intensive materials.
According to CREDAI-MCHI Chief Operating Officer Keval Valambhia, the war has led to significant supply-side challenges.
“Distributors have increased prices due to limited availability, but the situation remains manageable currently,” Valambhia said.
Marble & Tile Industry Hit Hard
- The marble and tile industry has been hit particularly hard, with nearly 80% of factories shut down.
- Major firms are now insisting on full advance payments and have stopped accepting new orders without prior confirmation.
Deep Vadodaria, CEO of Nila Spaces, explained that the conflict affects projects at multiple levels.
"Beyond finishing materials like façade glass, core inputs like steel and cement are witnessing price pressure due to rising crude oil prices," Vadodaria said.
This has been described as an indirect “wartax” on the sector, where developers deal with both cost escalations and procurement uncertainty.
Availability of Sanitaryware Hampered
- Anand Gupta, a member of the Builders Association of India, said the availability of sanitaryware is hampered by chemical supply issues.
Gupta's warning underscores the severity of the situation, as the conflict continues to impact India's real estate sector.
“If the conflict continues, project possession timelines could extend by two to three months,” Valambhia warned.