Realtors' body CREDAI on Thursday said housing prices may increase in the coming months due to a likely rise in rates of raw materials like cement amid the conflict between Russia and Ukraine.
In a statement, CREDAI President Harshvardhan Patodia said: "Post the geo-political escalations, oil prices have surged, and stock markets have crashed globally."
Oil prices have continued to rise over the last couple of months owing to concerns over disruptions in the global supply chain amid the crisis, he added. "Additionally, it will further impact Indian cement makers as they were already reeling under the pressures of rising costs of raw material and energy," Patodia said.
Cement makers will need to pass on the burden as 60-65 percent of their business is either directly or indirectly linked to crude prices, the association said. "Eventually, the impact will trickle down into the real estate industry as well," he said.While the industry has been resilient, the CREDAI president said the rise in prices of construction raw materials by 20-30 percent has forced developers to marginally increase the prices of projects. "Industry forecasts indicate that prices will rise much more in the coming quarter and given the current crisis, the surge may grow manifold," Patodia said.