CREDAI Brings NATCON Home

The Confederation of Real Estate Developers’ Associations of India (CREDAI) has moved its annual NATCON 2026 convention from Amsterdam to India. This decision aligns with Prime Minister Narendra Modi's recent call for reduced non-essential foreign travel and increased focus on domestic economic support. The association stated the move supports government goals to conserve foreign exchange and reduce fuel use during periods of global tension.

Global Tensions and Rising Costs Prompt Shift

The relocation addresses growing global uncertainties, particularly rising tensions in West Asia. These tensions impact India's economy, mainly through higher crude oil prices. Increased oil costs drive up transportation and logistics expenses, making raw materials and machinery more costly. This has pushed up prices for key materials like steel and cement. Experts estimate construction costs could rise 5-12% if conflicts continue. Domestically, the Indian real estate sector also faces higher prices for cement, steel, and other materials, alongside labor shortages. These dual pressures affect developer profits and project feasibility.

Shifting from International Norms

NATCON has historically taken place internationally, with past host cities including Singapore, Dubai, and Abu Dhabi. This year's shift marks a notable change, reflecting CREDAI's aim to align with national priorities and government directives. Prime Minister Modi's May 10th appeal specifically urged careful use of fuel, delayed gold purchases, and avoiding foreign travel to bolster the economy.

Cost Pressures and Project Risks

Despite strong domestic demand and urbanization driving the Indian real estate market, rising construction costs pose a significant risk. Continued geopolitical instability could lead to sustained inflation, squeezing developer profits and potentially increasing property prices. This would particularly affect affordable housing. Supply chain issues and material shortages also threaten project completion timelines and investor confidence. India's reliance on imported oil makes its construction sector vulnerable to global price shocks.

Positive Long-Term Outlook

Looking ahead, the long-term outlook for India's real estate sector remains positive, supported by strong domestic demand, ongoing urbanization, and government initiatives. While developers anticipate steady demand growth and price increases in 2026, they remain focused on managing rising input costs. The sector's ability to navigate these challenges will be key to its contribution to India's economic growth.