CREDAI calls for government action amid rising construction costs

The construction sector in Andhra Pradesh has suffered a devastating blow due to the ongoing international conflict involving the United States, Israel, and Iran, express the members of the Confederation of Real Estate Developers’ Associations of India-A.P. (CREDAI).

Dasari Rambabu, General Secretary, CREDAI A.P., said that the war has come at a time when the real estate business in the State had just begun picking up pace after experiencing a lull during the previous government.

“Now, with many local tile and sanitary business units in Gujarat shutting down due to the war-induced crisis, we are forced to depend on branded businesses for the supply of raw materials. Since these cost more, this has resulted in price hike, which in turn has affected the buyer,” Mr. Rambabu told The Hindu.

Earlier, in a press release issued on Saturday (April 4, 2026), CREDAI members said that rising crude oil prices in the international market have led to a massive spike in transportation costs, making the delivery of cement, sand, and bricks significantly more expensive. The war has also disturbed imports of raw materials essential for manufacturing steel and aluminum. This has also led to a shortage of glass, PVC pipes, and electrical wiring.

Mr. Rambabu said prices of all raw materials have risen by 15% to 25%. “The price of cement per bag, which was earlier ₹240, has increased to ₹300, while the price of steel, which stood at ₹56,000 per tonne before the war, has now risen to ₹70,000 per tonne,” the statement said.

The construction industry provides a livelihood for approximately 250 allied sectors. If this sector collapses, millions of workers will lose their employment, the CREDAI general secretary said.

They urged the government to regulate material prices and introduce tax rebates or a reduction in registration charges to provide breathing room for the construction sector.

The government should also maintain strict surveillance to ensure companies do not create artificial shortages under the pretext of price hikes, the CREDAI members said.

At present, construction activities have only slowed down in the State. The impact, while negligible in Visakhapatnam, is felt more in Amaravati, Mr. Rambabu said, adding that it will take five months for the sector to recover from the crisis.