Real estate sector under strain as material shortage, labour crunch hit projects | Ahmedabad News


Real estate sector under strain as material shortage, labour crunch hit projects

Ahmedabad: The real estate sector in the city is grappling with mounting challenges as shortages of key construction materials, rising input costs and labour scarcity disrupt project timelines and planning, developers said following a meeting on Friday.Builders convened under the Confederation of Real Estate Developers’ Associations of India (CREDAI), Ahmedabad, to assess the worsening situation and its impact on both ongoing and upcoming projects. Participants flagged acute shortages of essential inputs such as aluminium pipes, CPVC products, ceramics and electrical fittings, which they said have significantly hampered construction activity.Developers noted that the situation has been compounded by suppliers’ reluctance to commit to fixed prices, creating uncertainty in cost estimation. This has made it increasingly difficult for builders to plan budgets, float tenders and adhere to delivery schedules.The sector is also facing a shortage of labour, further slowing the pace of construction. Industry players said the dual challenge of supply disruptions and workforce constraints is putting pressure on project timelines as well as profit margins.A leading developer said, “The sector is facing three major challenges at present — shortage of critical raw materials, non-availability of firm prices from suppliers and labour scarcity. On top of this, the war-related uncertainty has weakened market sentiment and affected sales.”Sources indicated that developers are now considering collective efforts to address the crisis, including exploring alternative suppliers for both materials and labour through the association. Industry members believe such coordinated measures could help ease disruptions and bring some stability to construction activity in the coming months.



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