Real estate consultants expect improved execution and reduction in construction costs in the second half of CY 2026 following a peace understanding between Iran and the US.

The conflict between the two countries had pushed up the prices of aluminium, steel and other commodities. While there are green shoots like easing of freight rates, cost pressure will ease gradually.

“Any meaningful relief on construction inputs - steel, PVC pipes, cables and petro-chemical linked materials - will take 4-8 weeks to percolate through supply chains. Developers should not expect an overnight reset. The benefits will be incremental, but the direction of travel will be positive for project execution timelines in H2 2026,” said Anuj Puri, chairman of Anarock Group.

Around 5.4 lakh homes are due for delivery this year and 70 per cent of those are in Mumbai, Pune and Bengaluru. Continuation of conflict would have tested delivery timelines for builders with disrupted supply chains and increased costs. “The US-Iran peace MoU and the subsequent reopening of the Strait of Hormuz are a major geopolitical pivot for India’s real estate industry,” Puri said.

“Reduced geopolitical uncertainty can support global trade flows, ease supply chain disruptions, and moderate logistics costs. For India, greater stability in West Asia can strengthen business confidence, improve the investment climate, and reinforce the country’s appeal as a preferred destination for capital, manufacturing, and real estate investment,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

Published on June 22, 2026