Oil Shock To Real Estate: Will US-Iran Tensions Push Property Prices Up In India?

Niranjan Hiranandani, Founder and Managing Director of Hiranandani Group, stated that the escalating tensions between the US and Iran will "100% it will increase the prices" of raw materials and property. He explained that while initial cost increases might be absorbed if the conflict is short-lived, a prolonged war would lead to significant inflation. Mr Hiranandani noted that rising energy costs and a falling dollar would make petroleum imports more expensive, impacting various products. He predicted that if the war continues, property prices could see a rise of "10 to 12% at least" within the next three to five months. However, he expressed hope for a diplomatic solution, noting that the conflict affects energy sources for major economies like India, China, and Japan. He emphasized that the global impact on the Middle East energy supply makes a long-term war unlikely compared to other recent conflicts like those in Ukraine or Gaza, as the entire East and Middle East are affected by these escalations.

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