Rising geopolitical tensions in West Asia are beginning to impact India’s real estate sector, with increasing construction expenses, higher labour costs and supply-chain disruptions adding pressure on developers, according to Vikas Oberoi.
Speaking during Oberoi Realty’s Q4 FY26 earnings call, Oberoi said the company is already witnessing an increase in the prices of key construction materials and energy inputs. “These are stressing us out, but it is a problem for the entire industry,” Oberoi said while referring to the ongoing conflict in West Asia and its ripple effect on global supply chains.
Responding to queries on the impact of the geopolitical situation on customer sentiment, construction activity and raw material availability, Oberoi said, “Yes, costs are going up. And luckily, we literally, we really make sure we have a lot of contingency built in when we do our budgeting. But yes, costs have gone up. Energy cost has gone up, aluminium has gone up, glass has gone up, labour’s become expensive.”
He further added, “So, all these are, and then again, I mean, availability of materials become a bit of a challenge. So, these are stressing us out. But like I said, it’s a problem for the entire industry and we all are grappling with it. But yes, now it’s like slowly starting to hurt you in a way.”
According to Oberoi, the company currently estimates construction costs could rise by nearly 2–3 per cent. However, he maintained that the impact is still within the contingency buffers already factored into ongoing projects. “But like I said, it’s within the contingencies built. So really, it won’t affect the bottom line right now,” he said.
The company has already started recalibrating project budgets to account for future cost escalations. “We actually made sure that we now know for a fact that there will be a cost increase and we are factoring that within the projects that we are doing,” Oberoi noted.
Despite cost pressures, Oberoi Realty continues to expand aggressively. The developer announced nearly four million sq ft of new development potential across the Mumbai Metropolitan Region and confirmed multiple launches in FY27, including projects in Carter Road, Malabar Hill, Thane and Gurugram.
Source: Hindustan Times
