3 min readMumbaiMar 19, 2026 10:25 PM ISTKey construction inputs have seen sharp price increases. (File photo)Real estate prices in the Mumbai Metropolitan Region MMR are set to rise as a surge in construction material and logistics costs triggered by disruptions in the Strait of Hormuz pushes up project expenses, according to a report by Anarock Group, a real estate services and consulting firm.The report estimates that the ongoing conflict has already added roughly Rs 50 per sq ft to the cost of high rise construction, with developers likely to eventually pass on the burden to homebuyers, particularly in the affordable and mid-income segments.Key construction inputs have seen sharp price increases. Steel prices have risen by around 20 per cent, from Rs 62 to Rs 72 per kg, while hot rolled coil is currently at Rs 51 to Rs 56 per kg and may increase further if disruptions persist.Aluminium, used in building facades and infrastructure such as metro stations, has climbed to Rs 3.5 lakh per tonne amid production cuts in Gulf countries. Bitumen, essential for road projects, is now priced at Rs 48 to Rs 51 per kg.The spike in costs is being driven largely by logistics disruptions. With the Strait of Hormuz effectively blocked, shipments are being rerouted via the Cape of Good Hope, adding 6,000 to 10,000 nautical miles and delaying deliveries by 10 to 20 days. This has increased freight costs by Rs 1.5 to Rs 3.5 lakh per container, further compounded by higher marine fuel prices around Rs 1 lakh per tonne along with war surcharges and insurance premiums.Keval Valambhia, chief operating officer of CREDAI-MCHI, a developers’ industry body, said, “We are seeing early signs of 5–8 per cent cost pressures, especially in energy-intensive materials and logistics. Segments like tiles and ceramics are already witnessing supply-side stress due to LPG constraints, which could have a cascading effect on finishing timelines.”While developers and contractors are currently absorbing the additional costs, a prolonged conflict could lead to price hikes and project delays. “Even if the Gulf war ends tomorrow, a full reset will take one to three months… much of the damage to 2026 is, so to say, cast in steel and concrete,” the report noted.“As of now, contractors are managing the shortages and cost hikes. But we may face a problem down the road,” said an official from the Maharashtra State Road Development Corp (MSRDC), which is currently executing the Missing Link project on the Mumbai-Pune Expressway and the Versova-Bandra Sea Link. “Story continues below this adAn official from the MMRDA indicated that project cost may fluctuate in accordance with the variation clause in the contracts based on indices of by the central government.But delays and project halts may be on the horizon. “At this stage, developers are largely absorbing these shocks, but a prolonged disruption could translate into delayed execution cycles and selective price recalibrations,” said Valambhia.Sabah Virani is a journalist with The Indian Express’ Mumbai bureau, covering infrastructure, housing and urban issues. In the realms of technical fields, she brings out human stories and the pace of change ongoing in the city. Expertise Specialised Role: Tracking infrastructure in Mumbai and the wider Mumbai Metropolitan Region (MMR), Sabah’s reporting tracks progress on various projects. From bridges to metros, she mixes technical details with resourceful information. Core coverage areas: Sabah keeps a close eye on the activities of the Mumbai Metropolitan Region Development Authority (MMRDA) and its projects across the MMR, including the metros, road projects, bridges, the bullet train, pod taxi, its role as a planning authority, and more. She also watches for developments from the Maharashtra State Road Development Corporation (MSRDC), City and Industrial Development Corporation of Maharashtra (CIDCO) and the GoM’s Urban Development department. Housing: Sabah also tracks developments in housing, particularly the workings of the Slum Rehabilitation Authority (SRA). She also keeps a keen watch on the big redevelopment projects ongoing in Mumbai, including the Dharavi Redevelopment Project, Motilal Nagar, Kamathipura, BDD Chawl redevelopment, among others. Occasionally, she reports on the environment, biodiversity, waste, arts and culture. Experience: Prior to working for the Indian Express, Sabah covered the municipality, civic issues and miscellaneous for Hindustan Times. Before that, she covered all things Mumbai for the online publication Citizen Matters. She has also worked as an editorial assistant at FiftyTwo.in. ... Read MoreStay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:Mumbaireal estate