New Delhi, March 21 -- Escalating Middle East tensions have begun to spill over into India's real estate sector, as disruptions in the Strait of Hormuz choke a key global trade route, pushing up material costs, and threatening project timelines, particularly in the luxury housing segment, according to a report by Anarock Group.

An effective closure of the critical waterway has forced shipping vessels carrying construction materials to reroute via Cape of Good Hope, a rocky headland on the Atlantic coast of South Africa's Cape Peninsula.

This diversion has pushed up freight costs by Rs.1.5-3.5 lakh per container, while extending transit times by 10-20 days, increasing the risk of project delays, and in some cases, stalled developments, t...