Middle East tensions push up costs, dampen sentiment in India’s housing market
Tensions in the Middle East are affecting India's housing market, causing construction costs to rise and homebuyers to become cautious. Developers warn of possible price hikes if global uncertainty persists.
India's housing market is feeling the impact of rising tensions in the Middle East, with construction costs increasing due to higher freight and steel costs. Developers, such as Mumbai-based Srishti Group, have seen a 10% rise in construction costs across their projects. Home sales in India's top seven cities fell by 7% in the first quarter of 2026 due to uncertainty. Potential buyers from the Middle East are pausing purchases, contributing to the slowdown. If the conflict persists, analysts warn it could delay construction timelines and slow new project launches. Developers may have to increase home prices if cost pressures continue.
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