Govt advisory for relief to builders: How a war in West Asia is pushing construction costs higher across India

The Union housing ministry issued an advisory on July 31 asking state real estate regulatory authorities to grant builders a four-month extension for project completion.

The war in West Asia, which began on February 28, has led to higher costs for oil, shipping containers, and the dollar, impacting construction costs in India.

Credai's Andhra Pradesh unit reported cement prices rising from ₹240 to ₹300 per bag and steel from ₹50,000 to ₹70,000 per tonne since the war began.

Credai-Ahmedabad told Gujarat's regulator that some materials like cement, steel, tiles, and paints were 30% to 60% costlier.

Naredco estimated in April that developers reported input and labour cost increases of 5% to 12%.