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A conflict thousands of miles away is about to show up on Ahmedabad's property bills. Developers in the city have decided to raise prices, blaming a sharp rise in construction costs tied to the ongoing war in West Asia. The lift in Ahmedabad property prices will hit both residential and commercial buyers, though the industry says it will be gradual rather than sudden.
400 developers, one decision
The call did not come from a single builder. It was announced by CREDAI Ahmedabad, the local arm of the Confederation of Real Estate Developers' Associations of India, on Monday, after a special meeting attended by more than 400 developers.
The agenda was the squeeze itself. The meeting was called to assess how rising input costs and supply chain disruptions are hitting the sector. According to an official release, climbing raw material costs and a shortage of labour have created significant challenges for developers right across the city.
Why Ahmedabad property prices are climbing
The trigger is global, even if the bill is local. CREDAI Ahmedabad Chairman Rajesh Vaswani said the conflict in the Middle East has disrupted supply chains for essential construction materials, driving up prices and piling pressure on the industry. "The geopolitical situation has severely affected the availability of key construction materials," he said, with rising input costs pushing project expenditure higher.
That is the heart of the problem. When the materials that go into a building cost more and arrive less reliably, the cost of construction climbs, and developers say those increases are now too large to absorb quietly. Margins can only stretch so far before the price has to move.
It is not just materials
Vaswani was clear that the strain runs deeper than prices. Construction activity has slowed because raw materials are not arriving on time, and a labour shortage is making it worse. He noted that many migrant workers have not returned to their sites despite elections wrapping up in other states, thinning the workforce further.
That has a knock-on effect on timelines. Delays in materials and labour are stretching project schedules, which is a real problem given that developers are legally bound to finish on time under the Real Estate (Regulation and Development) Act. Missing those deadlines can invite penalties, so the pressure is financial on two fronts at once.
A phased rise, and a call for relief
The association is trying to soften the blow. Any price increase will be rolled out gradually to ease the burden on buyers, with President Aalap Patel saying the aim is to avoid hitting citizens with a sudden, excessive cost and to keep revisions phased and responsible.
CREDAI Ahmedabad is also looking for help. It has asked the government and the RERA Authority for relief, including extensions to project completion timelines. The association has advised members to raise property prices by 5 to 10 per cent depending on how far along a project is, according to a report by The Indian Express. For Ahmedabad's buyers, the takeaway is simple: homes are about to get dearer, just not all at once.
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