Construction to turn pricier as West Asia crisis hits home

Chennai: Your dream home is set to get costlier, and handing over might be delayed. The tremors from the ongoing West Asia conflict are now being felt in Tamil Nadu's construction sector. The industry is witnessing early signs of rising input costs, supply constraints, and delayed material deliveries across project sites.According to sources from the construction industry, houses could become 6% to 8% costlier. For example, a 1 crore house will cost 6 lakh to 8 lakh more. Cement prices are expected to increase by 50–100 per bag from April 2026, while steel prices remain volatile. Presently, many builders are absorbing the escalation in costs, but warn that sustained disruptions could eventually impact pricing and delivery schedules for homebuyers. Industry body CREDAI is planning to approach TN real estate regulatory authority regarding the project handover delay."The ongoing conflict is beginning to reflect in construction input costs, particularly for crude-linked materials such as pipes, plastics, insulation, and paints. While there is no significant impact on construction activity at present, supply constraints are emerging in certain segments, along with delays in material deliveries. If the situation continues, these shortages could lead to a steady increase in material prices and overall project costs," says A Mohamed Ali, president, CREDAI Chennai.The disruption in gas supply, which has forced production shutdowns in Morbi, Gujarat has triggered a shortage of tiles, sanitaryware, and finishing materials. "Companies are asking us to purchase whatever stock is left," said a developer.CREDAI Tamil Nadu has called for coordinated intervention to ease supply bottlenecks, monitor price volatility in key inputs such as cement and steel, and strengthen logistics through alternate sourcing channels."What we are witnessing today is not a local issue — it is a global ripple effect on our construction sites. When tiles stop coming in and material costs rise overnight, it directly impacts the speed at which we can build homes," said Habib W S, president, CREDAI Tamil Nadu.