Large construction site with ongoing work under an overcast sky
Construction costs have escalated by over 25 percent since the onset of global conflicts, significantly impacting developers who are grappling with material shortages and supply chain disruptions. The real estate industry’s apex body, CREDAI, has flagged these challenges, noting that rising material prices and limited availability are stretching project timelines.
The current economic climate, exacerbated by geopolitical tensions, has led to widespread issues in the supply chain, affecting the timely procurement of essential building materials. This, coupled with labor shortages, presents a dual challenge for the construction sector.
While the organized sector of the real estate industry is reportedly better equipped to absorb these pressures, developers are actively seeking relief from regulatory bodies, such as the Real Estate (Regulation and Development) Authority (RERA), for extensions on project completion timelines. Furthermore, there is a growing exploration of technology adoption as a means to mitigate the impact of labor shortages and improve overall construction efficiency.
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