Hyderabad: The prices of flats in Hyderabad may increase as the global shipping crisis begins to impact the real estate market.
The disruption caused by the Strait of Hormuz blockade has raised the cost of construction materials and delayed their supply.
Rerouting of ships
According to a report by real estate consulting firm Anarock, due to the rerouting of ships, delivery of key construction materials is now taking 10 to 20 days longer than usual.
At the same time, shipping costs have increased by around Rs 1.5 lakh to Rs 3.5 lakh per container. These rising expenses are directly affecting the real estate market and may lead to higher prices for flats in Hyderabad.
Steel, which is a major material used in construction, has seen a price increase of around 20 percent and is now costing about Rs 72,000 per tonne. This rise is adding nearly Rs 50 per square foot to the cost of building high-rise projects.
Since many new flats in Hyderabad are part of high-rise developments, the increase is likely to impact overall project costs.
Other materials are also becoming more expensive. Marine fuel prices have reached around Rs 1 lakh per tonne, while additional charges such as war risk and insurance are further increasing costs. Aluminium prices have also gone up to around Rs 3.5 lakh per tonne, adding more pressure on the real estate sector.
Fuel costs are also rising due to global conditions, which increase the cost of operating construction equipment. In addition, labour costs have increased in recent years, making construction more expensive. All these factors are contributing to higher costs in the real estate sector and may lead to a rise in prices of flats in Hyderabad.
Experts say that even if the global situation improves, it may take one to three months for supply chains to return to normal. Delays at ports and higher shipping charges are expected to continue in the short term, which will keep affecting the real estate sector.
Affordable flats buyers to feel pressure in Hyderabad real estate market
Luxury housing projects are likely to be affected more as they depend on imported materials. However, buyers in this segment may be able to manage price increases.
On the other hand, buyers looking for affordable flats in Hyderabad may feel more pressure due to rising costs and home loan interest rates.
Travel issues may also impact NRI buyers, who contribute a significant share to premium real estate sales. Difficulty in visiting India could slow down property deals in the high-end segment.
Overall, the current global situation is creating challenges for the real estate sector.
In Hyderabad, developers may have to increase the prices of flats due to higher material costs and delays, making it important for buyers to stay updated on market trends.
