Winning Bizness Desk

Mumbai. The ongoing war between Russia and Ukraine has started showing its adverse impact on several sectors in India, and then how can the Indian real estate industry be unaffected. This crisis is affecting the Indian market in several strange ways. It is being touted that due to the ongoing conflict between Russia and Ukraine, cement prices in India may rise and if this happens, then the prices of houses here will also increase in the coming months. Several quarters are also fearing that even if this doesn't affect the real estate sector considerably, even then builders will have a point to hike prices to squeeze more money from buyers pockets.

What CREDAI says

A pan India level organization of companies working in the realty sector CREDAI has estimated that ongoing war would result in cement price hike, that will force builders to recover it from buyers. CREDAI President Harshvardhan Patodia says that the price of crude has increased due to the geopolitical crisis. Globally, the stock market has fallen badly. Its impact will be visible in other sectors as well.

Cement manufacturers may be affected

Patodia says that India's cement manufacturers will be further affected due to this crisis. These were already under pressure from rising raw material and energy costs. Now the Ukraine crisis can bring some different types of problems. The cost of metals used in the house may also increase. Experts in this sector say that due to the Ukraine crisis, the prices of metals used in building construction may also increase. At present Russia is the leading producer of aluminum in the world. Due to this stress, its production will be affected there that will ultimately hike the prices of this metal.

The price is set to increase

CREDAI did a survey on house prices in January last. According to this report, 21 per cent of the developers had said that the prices of houses would increase by 30 per cent this year. Around 60 per cent developers had expected property prices to rise by 20 per cent this year. Around 35 per cent of the developers had projected a growth of 10-20 per cent. At the same time, 25 percent believed that the increase in house prices could be up to 10 percent. The survey was conducted from 30 December 2021 to 11 January 2022. In this, talks were held with 1,322 developers of the country. These developers are operating in Delhi, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region and Pune.