Impact of Rising Cement Prices on India’s Real Estate Market

Rising Cement Prices, Real Estate Market, India
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The Indian real estate sector is bracing itself for a significant challenge as cement prices surge across the country. Reports indicate that prices are set to increase by varying amounts in different regions, posing a threat to ongoing and future construction projects. This article explores the implications of rising cement prices on the real estate market in India, particularly focusing on the concerns raised by industry experts.

Impact on Developers and Consumers:

The anticipated hike in cement prices is expected to directly impact the cost structure for developers. With construction costs on the rise, developers are likely to face pressure, leading to potential cost overruns and delays in projects. This, in turn, could affect the pricing landscape for consumers, making housing projects less affordable and challenging the government’s ‘Housing for All’ initiative.

Industry Expert Insights:

G Hari Babu, National President of NAREDCO, highlights the concerns within the real estate sector, emphasizing the challenges posed by the surge in cement prices. Similarly, Anantharam Varayur, Co-founder of Manasum Senior Living, expresses worries about passing on additional expenses to residents and the need to find solutions to mitigate the impact.

Regional Dynamics:

The Mumbai Metropolitan Region (MMR) is identified as a critical area, with Kamal Shah, Partner at Palladian’s, noting the potential repercussions of the cement price hike. Despite robust sales growth, developers in MMR might face margin pressures and could be compelled to adjust project pricing upwards, impacting buyer affordability and market sentiment.

Market Resilience and Future Outlook:

The rise in cement prices could test the resilience of the real estate market, affecting both developers’ cost structures and consumers’ purchasing power. This situation underscores the need for innovative solutions to address the challenges posed by escalating construction expenses.


As cement prices continue to rise, the Indian real estate market faces a period of uncertainty and challenges. Developers and industry stakeholders must navigate these turbulent waters by exploring cost-effective strategies and maintaining market resilience to ensure sustainable growth in the long term.

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