Real Estate Price May Rise In India Due To Russia – Ukraine War

Ukraine Russia War impact real estate - majheghar

According to the current reports, real estate prices may arise in India due to Russia – the Ukraine warRussia – Ukraine war impact on real estate and social economy is unaffordable. The reason behind it is that price may increase for cement and other construction materials. It is an excellent illustration of how geopolitical conflicts in other countries impact the real estate market and mortgage rates.

Nowadays, top real estate builders in India are also worried about it. The war happened between Russia and Ukraine, but we can see the harmful impact on India. The current conflict between Russia and Ukraine will cause price increases in a variety of goods, including oil, cement, LPG, Diesel, and wheat, among others.

What sectors were affected by this war?

  • The primary cause of this effect is the looming threat of conflict between major powers.
  • It will eventually affect the real estate market because markets worldwide are feeling the effects of uncertainty.
  • Interest rates were rising before word of the crisis reached the rest of the globe. Still, with Russia’s attack on Ukraine, interest rates on mortgages plummeted for a brief period throughout the world.
  • The Ukraine-Russia conflict is likely to culminate in a slew of economic penalties, which may wreak havoc on global commodities and energy markets.

What does CREDAI have to say about it?

According to CREDAI (Confederation of Real Estate Developers Associations of India), the real estate industry’s governing body, house costs may rise in the coming months due to a possible increase in raw material prices, such as cement, as a result of the conflict between Russia and Ukraine.

Harshvardhan Patodia, the President of CREDAI, stated that the present global turmoil has led to an increase in crude oil prices. The stock market has plummeted worldwide, having a noticeable influence on several other industries.

  • Cement manufacturers expected to increase: 

According to the CREDAI, it may harm India’s cement manufacturers more due to war situations. They were already under stress owing to rising energy and raw material costs, and the current crisis will exacerbate their problems by altering the distribution and manufacturing costs of Petrol and Diesel.

According to CREDAI, cement makers would eventually shift the burden of increased manufacturing costs to developers because around 60-65 percent of their commerce is linked to petroleum prices, either indirectly or directly.

The increase in the price of building materials by 20% to 30% had already led builders to raise the pricing of home projects marginally. However, industry projections imply that rates will rise significantly in the next quarter, given the current situation.

  • Metal prices are expected to rise: 

According to numerous analysts, the present Russia-Ukraine issue will influence the cost of metals used in property building. Metal prices may experience a significant increase, as Russia is now one of the world’s largest aluminum manufacturers.

Aluminum is also widely employed in the modern building sector, as it produces a solid and durable alloy when combined with other metals. However, the aluminum output may be harmed due to the current crisis, or in the event of economic or political sanctions from the West, a visible increase in the metal’s price will ensue.

Palladium is another commodity that might experience a price increase, as Russia is the world’s largest exporter of the metal. Metal is mainly employed in electronic gadgets such as cell phones.


To summarise, the conflict between Russia and Ukraine is expected to impact real estate property in India significantly. The developer’s costs will rise by about 20-25 percent due to increases in raw material prices, transportation costs, and oil prices. The rise in the input price will significantly influence the property’s final price.

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