Mumbai, June 26 -- The Confederation of Real Estate Developers' Associations of India (CREDAI) Ahmedabad has warned that property prices in Ahmedabad are set to rise after the West Asia conflict disrupted supply chains and tightened labour availability. The association said rising construction input costs have increased project expenditure and placed substantial pressure on developers. It added that sourcing key materials on time has become more difficult, slowing work on multiple sites.
The warning followed a special meeting attended by more than 400 developers to assess the impact of rising input costs and ongoing supply chain challenges linked to the conflict. CREDAI Ahmedabad said shortages and logistical disruption have driven price increases for essential construction materials and have reduced employment opportunities for migrant labourers. The association noted that many workers have not returned to urban centres after recent elections, worsening the labour shortfall.
CREDAI Ahmedabad emphasised that delays in material availability and labour constraints are extending project schedules and complicating timely delivery obligations under the Real Estate (Regulation and Development) Act. The association said it had advised members to defer immediate price revisions until the end of June to shield homebuyers from a sudden burden. It reported that public notices urging prospective buyers to complete purchases before the end of June received a positive market response.
The body appealed to government authorities and the RERA regulator for relief measures, including extensions to project completion timelines under the provisions of the Act, to mitigate the impact on developers. It said developers have absorbed cost increases for as long as practicable, but can no longer sustain sharply higher inputs. CREDAI Ahmedabad recommended that each developer consider a staged price increase of five to 10 per cent according to project stage.
The association indicated that any necessary price adjustments would be phased to minimise financial effect on homebuyers while preserving project viability. It called for a responsible approach to revisions and for regulatory support to address the supply chain and labour challenges confronting the local real estate sector.
Published by HT Digital Content Services with permission from Construction World.