By- Umesh Gowda H.A, Chairman and Founder, Sanjeevini Group
The ongoing West Asia conflict is beginning to reflect on India’s real estate sector through rising input costs. the need of the hour is to proactively seize opportunities for cost optimisation without having to increase price for end-users. The industry has navigated similar cycles in the past, and we remain focused on efficient planning and cost optimisation. While near-term challenges persist, underlying housing demand in India continues to remain resilient.
By- Ankur Jalan, CEO, Golden Growth Fund (GGF), a Category II real estate focused Alternative Investment Fund (AIF) designed for South Delhi
Construction cost pressures are becoming more pronounced, with material prices showing mixed trends and labour costs rising sharply following the implementation of new labour codes. The ongoing war in West Asia, resulting in increased time for material delivery and Rupee depreciation, are also contributing to increased cost. In premium markets like South Delhi, developers may need to recalibrate pricing strategies while maintaining quality and timelines. Despite these challenges, demand for high-end housing remains resilient, and we expect the market to absorb incremental cost increases over the medium term.
By- Lalit Parihar, MD, Aaiji Group, Dholera-based real estate company
The impact of rising construction and labour costs, further aggravated by the ongoing crisis, will require smart project execution capabilities without ensuring any rise in price of homes in order to keep buyers’ interest intact. Ahmedabad is one of the most affordable housing markets and the city has seen 8-10% increase over the two-year period. That said, Ahmedabad’s real estate market continues to benefit from strong end-user demand, infrastructure growth and industrial expansion. Developers are focusing on cost optimisation and efficient project execution to ensure that affordability is maintained while delivering quality developments.
