As Middle East conflict continues to impact global energy markets and supply chains, India's real estate developers struggle to deliver projects on schedule, reflecting one of the hardest challenge in years. While demand remains resilient, and project financing has been better than in previous cycles, continued disruptions to global trade routes, commodity markets, and supply chains has raised risks over the delivery of 5.40 lakh homes in 2026, according to a report by Anarock.
A prolonged geopolitical conflict will impact these projects due to higher energy prices, increased logistics costs, and inflation in key construction materials such as steel, aluminium, copper, electrical equipment, and building systems, it added.
“Historically, ambitious housing supply pipelines have often been vulnerable to external shocks like these,” said Prashant Thakur, Executive Director and Head of Research & Advisory at Anarock Group.
Check City-Wise Breakdown
The current delivery issue has been primarily observed in cities such as Mumbai, Pune and Bengaluru, where around 70% of homes are due for completion, facing biggest execution challenges. In Mumbai Metropolitan Region, 2,07,300 units are scheduled for delivery over the year, while Pune expects 1,00,300 units to be delivered in 2026. This has been followed by South, Bengaluru (69,000 units), Hyderabad (63,700 units) and Chennai (35,600 units) collectively accounting for 1,68,300 units lined up for delivery this year.
ALSO READ: Mumbai Real Estate Market Sees Record-Breaking May; Registrations Surge To 14-Year High
“Cities with the largest completion pipelines, specifically MMR, Pune and Bengaluru are particularly sensitive to sustained input costs inflation, as developers must maintain delivery schedules and simultaneously manage margin pressures,” said Thakur.
Notably, the Middle East conflict driven supply issues has been the worst crisis since the Covid-19 pandemic. In 2020, around 2.14 lakh homes were delivered against a scheduled pipeline of 4.66 lakh units, reflecting disruptions during the pandemic year.
Highlighting delivery issues during pandemic, Thakur said, “ during the pandemic year of 2020, ANAROCK Research shows that approx. 4.66 lakh homes were scheduled for completion across the top 7 cities. However, only about 2.14 lakh units, or 46% of the planned pipeline, were ultimately delivered as construction came to a halt due to lockdowns, labour migration, and supply-chain disruptions."
This gap in the scheduled and actual project completions highlight that even projects in advanced stages of construction can face delays due to large-scale disruptions. However, the current situation is fundamentally different from the pandemic, as construction activity continues uninterrupted and labour availability remains stable.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
