Bhubaneswar: The ongoing conflict in West Asia in a ripple effect may impact Odisha’s real estate sector, with developers warning of a likely rise in construction costs that could eventually push up apartment prices. “The Odisha market is particularly sensitive. Most homebuyers here belong to the middle class and are extremely price-conscious. Even small fluctuations influence purchase decisions. The ongoing conflict will affect both the developers as well as the buyers,” Umesh Pattnaik, general secretary of the Odisha Developers’ Federation (ODF), said on Sunday.Some developers’ associations have said that the escalating crude oil prices, triggered by geopolitical tensions, will impact the cost of transporting construction materials, while a prolonged disruption in supply could raise overall construction costs by 5% to 15% in the coming months.“Due to the West Asia conflict, oil prices are expected to increase, directly affecting logistics costs of construction materials. As a result, the overall cost of construction may rise. If the situation continues, real estate prices are bound to go up in the long run,” Pattnaik added.He further said that the Odisha market is particularly sensitive. “Most homebuyers here belong to the middle class and are extremely price-conscious. Even small fluctuations influence purchase decisions. The ongoing conflict will affect both the developers as well as the buyers,” Pattnaik added.Rohit Agarwal, a Bhubaneswar-based developer, said the cost of steel, cement haulage and tiles have already become unpredictable. “The issue is not just higher prices, but uncertainty. Contractors are hesitant to commit to fixed rates when fuel prices keep fluctuating,” he said.While the immediate impact on project execution remains limited, developers fear that prolonged volatility in fuel prices could slow down construction schedules. Higher transportation costs, coupled with potential shortages of imported or energy-intensive materials, may also affect project completion timelines if the conflict in West Asia continues.However, national developers’ bodies have sought to allay concerns, pointing out that the Indian real estate sector remains largely insulated due to domestic sourcing of key raw materials. “The Indian real estate sector is largely stable, with no major disruption in construction activity so far,” Shekhar Patel, the president of CREDAI, said.He added that at present, they are only seeing temporary supply-chain disruptions caused by global energy volatility. “Certain clusters like the Morbi marble and tiles hub in Gujarat are facing short-term challenges due to fuel supply constraints and rising logistics costs, but these are transitional,” he said.For homebuyers, the uncertainty has triggered hesitation. Anita Behera, a salaried professional planning to buy a flat in the city, said she is adopting a wait-and-watch approach. “Prices were already stretched. If costs rise further, it may go beyond our budget. We are unsure whether to invest now or wait,” she said.
