US-Iran Conflict Puts 5.4 Lakh Indian Home Possessions at Risk in Real Estate Sector
The ongoing US-Iran conflict has sent shockwaves across the global economy, and India is no exception. The country’s supply chains have been significantly impacted by disruptions and blockades in the Strait of Hormuz. Now, in the latest development, India’s real estate sector has also come under pressure. Rising fuel costs, supply chain bottlenecks, and volatility in commodity markets could delay the delivery of nearly 5.4 lakh residential units across India. A recent report by real estate consultancy firm Anarock warns that projects launched between 2021 and 2023 could face significant setbacks if geopolitical uncertainty persists.
According to Anarock, a record number of residential projects are currently in the final stages of construction across Delhi-NCR, MMR, Pune, Bengaluru, Hyderabad, Chennai, and Kolkata. However, rising input costs and supply-chain disruptions linked to the West Asia conflict are threatening construction schedules. As a result, possession timelines for thousands of homebuyers could be delayed.
The Mumbai Metropolitan Region (MMR) and Pune are expected to be the most affected markets, accounting for nearly 57% of all housing completions scheduled this year. Around 2.07 lakh homes are slated for delivery in MMR, while Pune is expected to see the completion of over 1 lakh units. Any prolonged disruption in construction activity or supply chains could significantly affect these markets and delay possession for a large number of buyers.
The impact is not limited to western India. More than 1.68 lakh homes across major South Indian markets are also vulnerable to delays. Bengaluru alone is expected to deliver around 69,000 homes this year, followed by Hyderabad with 63,700 units and Chennai with 35,600 units. Industry experts warn that inflation in construction material and transportation costs could slow project execution across these key markets.
Real estate analysts note that large-scale housing delivery targets are highly susceptible to external shocks. During the pandemic-hit year of 2020, only 2.14 lakh of the planned 4.66 lakh homes were delivered across the top seven cities due to lockdowns, labour shortages, and supply chain disruptions. While the current situation is not as severe as the COVID-19 crisis, rising fuel, logistics, and material costs remain a concern. Nevertheless, strong housing demand and the improved financial health of developers compared with previous downturns offer some optimism that the sector can better withstand the ongoing global uncertainty.
