Property prices set to rise in Ahmedabad due to West Asia conflict: CREDAI

3 min readAhmedabadJun 16, 2026 10:36 AM IST

As per the release, the increase in property prices would be implemented gradually to minimise the financial impact on homebuyers. (Source: Express Archives/ Representational)

In direct impact of the conflict in West Asia on the real estate sector of Ahmedabad, the prices of property in the city are set to rise due to sharp increase in construction costs arising from disruptions in global supply chains and labour shortages.

An announcement in this regard was made by the Confederation of Real Estate Developers’ Associations of India (CREDAI) – Ahmedabad, on Monday, following a special meeting attended by more than 400 developers to assess the impact of rising input costs and ongoing supply chain challenges ‘linked to the conflict in the Middle East.’

Quoting Rajesh Vaswani, Chairman CREDAI Ahmedabad, an official release stated, “The geopolitical situation had severely affected the availability of key construction materials, leading to significant cost increases across the sector.”

He added, “The conflict in the Middle East has disrupted supply chains for essential construction materials, resulting in unprecedented price increases and putting substantial pressure on the real estate industry. Rising input costs have significantly increased project expenditure and created serious challenges for developers.”

He further added, “Apart from the above-mentioned increase, construction activities have slowed down due to the non-availability of sufficient raw materials on time. As a result, employment opportunities for labourers have declined significantly. Additionally, despite the completion of elections in other states, many migrated workers have not returned from their native places, leading to a severe shortage of labour. Delays in the availability of raw materials and labour constraints are extending project schedules, making timely delivery increasingly difficult for developers.”

Vaswani also pointed out that developers are required under the Real Estate (Regulation and Development) Act (RERA) to deliver projects within stipulated timelines, with penalties applicable for delays.

The release also quoted President of CREDAI Ahmedabad Aalap Patel as saying that the association had sought to shield homebuyers from the immediate impact of rising costs by deferring any price revisions until the end of June.

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“CREDAI Ahmedabad had issued public notices in leading newspapers on May 15 advising prospective buyers to complete their residential or commercial property purchases before the end of June. The initiative received a positive response from homebuyers and investors,” he said, while noting that the sustained increase in construction costs had left developers with limited options,” Patel said.

As per the release, the increase in property prices would be implemented gradually to minimise the financial impact on homebuyers.

Patel said, “Our objective is to ensure that citizens are not subjected to a sudden and excessive financial burden. We have therefore advised members to adopt a phased and responsible approach to any necessary price revisions.”

“Ahmedabad developers have absorbed substantial cost increases for as long as possible. However, continuing to bear the burden of sharply higher input costs is no longer financially sustainable,” he added.

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With that, as per the release, the association has called for appropriate relief measures for the sector and has submitted representations to both the Government and the RERA Authority seeking extensions to project completion timelines under the provisions of RERA Act.

It added that CREDAI Ahmedabad has requested each developer to increase the price by 5 to 10 percent according to the current stage of their project.