The Russia-Ukraine conflict has the potential of impacting the construction industry in two ways
• Unusual escalation due to supply-demand disruption and squeezed margins due to the increase in input costs.
• Trade and banking sanctions can cull India’s export-import activity in the affected regions until other options are found.
As raw material prices skyrocket, the project owners face significant challenges. Last year, the market had just recovered with sales / lease increasing across sectors. With the upper limit fixed the increase of costs of project delivery negating profit levels. Hence, the developers are expected to increase their sale prices in the coming quarters to offset some of the impact and looking for ways to optimize costs wherever possible.
Read here on how the future uncertainties will influence the Indian construction market with the Government already setting regulators to tackle the ongoing unusual inflation and its ripple effects.