Cost of construction materials has shot up in Tamil Nadu because of the West Asia war.
| Photo Credit: Siva Saravanan S.
With the West Asia war continuing for more than two months now, Tamil Nadu is seeing the property sector taking a hit as completion of projects are getting delayed and costs are spiralling.Achal Sridharan, founder and Managing Director of CovaiCare, said prices of building materials are up 25% to 40%.According to Gugan Ilango, president elect of Confederation of Real Estate Developers Associations of India, Tamil Nadu, 80% of production of tiles at Morbi, Gujarat, has come to a standstill, hitting availability of tiles. “We are managing with what we have. More than the prices, availability of tiles is a major issue,” he said.This is felt across outlets selling tiles in the State. The price of tiles that was ₹65 a piece is today ₹79 and stocks are not readily available, said a tile shop owner in Tiruppur.“Delivery of properties is getting delayed because of the non-availability of tiles,” Mr. Ilango added.The prices of all PVC products has increased 20% to 25%. While the price of fuel has increased 10%, the downstream industries are jacking up the prices abnormally. “It is the property developers who are taking the hit. We cannot hike the price for deliveries we have committed. We are escalating the costs for new projects. But, we cannot pass on the entire increase in prices to consumers,” he said.K. Prasad, head of the Coimbatore centre of the Builders Association of India, said that on an average the total construction cost has increased at least 5% in the last two months. Prices of plumbing items, steel, and cement have all increased in the last one month. Any material that is a byproduct or based on petroleum has seen a steep increase in prices, he added.The demand for properties in Tamil Nadu is looking up, especially from consumers who are currently in the West Asian countries. But, prices and delivery issues are major challenges for the developers. The Tamil Nadu Real Estate Regulatory Authority should give property promoters six to eight months extension to complete projects, Mr. Ilango added. Published - May 26, 2026 07:49 pm IST
