India's housing boom cushions tiles industry against West Asia supply disruptions
New Delhi, July 26
Strong housing demand and a robust construction pipeline are expected to keep India's tiles and marble industry on a growth path despite higher freight costs and supply-chain disruptions caused by geopolitical tensions in West Asia, according to industry stakeholders.
The optimism comes as India's residential real estate market continues to witness healthy momentum.
The positive demand outlook comes even as the ongoing conflict in West Asia and disruptions in the Red Sea shipping corridor have increased freight rates, extended transit times and raised marine insurance costs.
Ceramic manufacturers, particularly those in Gujarat's Morbi cluster, have also been impacted by higher fuel costs and disruptions in the supply of imported propane and LPG used in production.
Despite these challenges, industry players believe India's expanding domestic manufacturing base and resilient real estate sector will help absorb the impact of global supply disruptions.
According to the latest CREDAI-Liases Foras report, the country's primary housing market recorded transactions worth over Rs 8.46 lakh crore in 2025, up 16 per cent year-on-year. Homes priced above Rs 1 crore accounted for nearly 78 per cent of the total sales value, reflecting strong demand in the premium housing segment.
"India's construction sector continues to demonstrate remarkable resilience despite global uncertainties. While geopolitical developments have created temporary challenges in logistics, fuel availability and supply chains, the long-term outlook for the tiles and marble industry remains encouraging. Continued growth in housing, commercial real estate and infrastructure development is driving demand for high-quality, durable and sustainable surface materials," said Aparna Reddy, Executive Director, Aparna Enterprises Ltd.
She added that India's strong domestic manufacturing ecosystem and increasing focus on innovation would help the industry navigate short-term disruptions while supporting long-term growth.
The demand is also being supported by changing homebuyer preferences, with consumers increasingly seeking better-quality interiors, premium finishes and durable construction materials. Alongside residential demand, the expansion of commercial real estate, hospitality projects and infrastructure development is expected to further support consumption of building materials.
Sidharth Jain, President, NAREDCO NextGen NCR and Director, Tulip Infratech, said geopolitical developments have increased logistics costs in the short term, but India's real estate market continues to be supported by strong domestic fundamentals.
"Housing demand, commercial expansion and infrastructure investments remain robust. Developers are increasingly focusing on quality construction and durable materials that enhance long-term value. We remain optimistic that the tiles and marble industry will continue to benefit from India's urbanisation and construction-led growth story," he said.
So while the geopolitical uncertainties may continue to create short-term cost pressures, India's strong housing pipeline, urbanisation and infrastructure spending are likely to keep demand for tiles, marble and allied building materials on a long-term growth trajectory.
— ANI
Reader Comments
As someone planning to buy a home in NCR, this gives me confidence. But I'm concerned about the rising costs due to supply disruptions—will these be passed on to us? 🤔
Gujarat's Morbi cluster is the backbone of India's tile industry. The government should ensure fuel subsidies and better logistics support for these MSMEs to keep the growth story alive. 🇮🇳
The shift towards premium finishes is real. Even in smaller towns, people are opting for better-quality tiles and marble for their homes. This sector has huge potential if costs are controlled. ✨
Good to see Indian manufacturing stepping up! But high fuel costs and propane supply issues need urgent attention. Why is industry body like NAREDCO not pushing for policy intervention? 🤷♂️
Housing boom is a great sign for our economy. But the article talks about premium housing driving demand—what about affordable housing? That segment needs more support too. 🏡
Interesting perspective! India's domestic manufacturing and urbanisation are indeed strong buffers.
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