Indian real estate hit hard by US-Iran war as possession of 5 lakh homes gets stuck due to..; most impacted city is…

India’s real estate sector is grappling with delays in delivering nearly 5.4 lakh residential units, primarily due to disruptions caused by the US-Iran conflict. The Anarock report highlights that projects launched between 2021 and 2023 are at risk, with rising input costs and supply chain bottlenecks in the Strait of Hormuz exacerbating the issue. The Mumbai Metropolitan Region (MMR) and Pune are the most affected, accounting for 57% of scheduled housing completions this year. Over 2.07 lakh homes in MMR and 1 lakh units in Pune are set for delivery, but prolonged disruptions could push back possession timelines for thousands of buyers. South India is also vulnerable, with Bengaluru, Hyderabad, and Chennai facing delays for 69,000, 63,700, and 35,600 homes respectively. Industry experts cite inflation in construction materials and transportation costs as key challenges slowing project execution. Analysts draw parallels to the COVID-19 pandemic, when only 2.14 lakh of the planned 4.66 lakh homes were delivered in 2020. While the current situation is less severe, rising fuel and logistics costs remain a concern. However, strong housing demand and improved developer financial health offer some resilience against global uncertainty. The report emphasizes that large-scale housing delivery targets remain susceptible to external shocks, with geopolitical tensions adding pressure to an already strained supply chain. Developers and buyers alike are closely monitoring the situation as delays could impact market confidence and project timelines.