Kolkata's real estate market is confronting fresh time and cost escalations as the conflict in West Asia disrupts supplies of construction materials, delays project execution, and pushes up apartment prices. A letter from CREDAI West Bengal to chief secretary Manoj Kumar Agarwal, seeking an extension of project timelines due to material shortages, has highlighted the twin risks for homebuyers: delayed possession and higher prices.
Impact of War on Construction Materials
Developers indicated that the war in the Gulf has triggered shortages of cement, steel, aluminium, copper, polymers, and other energy-intensive construction materials. Production in key manufacturing clusters has either stopped or is running at limited capacity, while rising fuel, logistics, and raw material costs are inflating project budgets and slowing schedules. This pressure comes at a time when nearly 100 major and 300 mid- and low-size private housing projects are under construction in Kolkata.
Cost Escalation Details
The cost pressure has been sharp since December 2025. Prices of reinforced concrete have risen by 20%, cement by 8%, sand by 17%, stone chips by 8%, vitrified tiles by 13%, wooden door frames by 37%, wooden door shutters by 15%, aluminium formwork by 51%, and copper RMT by 74%. Sushil Mohta, president of CREDAI West Bengal, said, "The steep hike in essential fuels has also affected site-level fabrication, cutting, welding operations and is pushing migrant workers out of major urban centres, affecting both labour cost and availability."
Realty consultant Samantak Das added, "Crude oil prices feed directly into the cost of cement, steel, aluminium, PVC pipes, adhesives, and logistics—virtually every input that goes into building a complex."
Price Rise and Relief Measures
Developers estimate the cumulative impact could push Kolkata property prices up by around 10%, with some pockets seeing increases of 10-12%. Citing the Union finance ministry's office memorandum dated April 29, 2026, which stated that "the prevailing West Asia situation should be treated as a ‘war' triggering force majeure" and contractual obligations on or after February 28, 2026, may be extended by two to four months without additional cost or penalty, CREDAI West Bengal has urged the state to extend similar relief to the real estate sector. The developers' body has asked the state to advise WBRERA to grant a blanket extension of three to six months.
Premium housing may remain relatively resilient, but the mid-segment market is expected to feel the strain more sharply. Homebuyers are advised to stay informed about project timelines and potential cost overruns as the situation evolves.
