Ahmedabad’s real estate sector is witnessing growing pressure from rising construction input costs, prompting developers to consider a possible increase in prices for under-construction residential properties.
According to a report published by ETRealty, developers in Ahmedabad are scheduled to meet on June 15 under the Confederation of Real Estate Developers’ Associations of India (CREDAI Ahmedabad) to decide whether property prices should be revised upward. The discussion comes amid significant escalation in material costs, driven largely by supply chain disruptions linked to geopolitical tensions in West Asia.
Industry stakeholders indicate that while ready-to-move-in and completed projects are expected to remain unaffected, under-construction developments—particularly those launched in the last six months—may see price increases in the range of 5% to 7%. Developers argue that the current cost environment has significantly altered project viability, especially for early-stage projects where pricing was fixed before the recent surge in input costs.
The meeting is also expected to address broader concerns related to construction delays and regulatory timelines. CREDAI Ahmedabad has reportedly requested a six-month extension from GujRERA, citing continued pressure from rising raw material prices and intermittent shortages of key construction inputs.
Developers have highlighted that essential materials such as cement, steel, tiles, aluminium, PVC pipes, paints, ready-mix concrete, cement blocks, and waterproofing products have seen sharp price increases. According to industry estimates cited in the report, some materials have become 30% to 60% more expensive since the onset of the conflict-driven supply disruptions. At the same time, inconsistent availability of materials is adding further strain to project execution timelines.
CREDAI Ahmedabad chairman Rajesh Vaswani noted that the upcoming meeting aims to build consensus among approximately 300 developers in the city. He emphasized that the impact of cost escalation varies across projects depending on their stage of construction. While completed projects are insulated from current volatility, ongoing developments face direct financial pressure due to revised procurement costs.
A senior developer also pointed out that internal discussions are already underway within the industry. The consensus emerging is that price revisions, if implemented, will be selective and limited to projects that are still under construction, while completed housing stock will remain unchanged to maintain market stability and buyer confidence.
In addition to pricing concerns, developers are also likely to push for regulatory flexibility to manage project timelines more effectively under current market conditions. The overall sentiment suggests that the industry is attempting to balance cost pressures with market competitiveness, ensuring that demand is not adversely impacted while maintaining project feasibility.
The outcome of the June 15 meeting is expected to be significant for Ahmedabad’s housing market, as it could set a precedent for how developers across Gujarat respond to sustained inflation in construction inputs amid global supply uncertainties.
