A Strait of Hormuz blockade raised Mumbai luxury home costs by up to 39% over four years due to higher shipping, material, and labor expenses.

A blockade near the Strait of Hormuz has disrupted shipping, increasing construction costs for luxury homes in Mumbai by up to 39% over four years. Steel prices rose 20% to ₹72,000 per tonne, adding ₹50 per sq ft to building costs, while shipping delays of 10–20 days and higher fuel and insurance fees raised container costs by ₹1.5–3.5 lakh. Materials like aluminum, bitumen, and imported marble have also become significantly more expensive, with some finishes costing up to ₹6,000 per sq ft installed. Labour costs rose 25–40% due to shortages. Though Mumbai’s ultra-luxury market remains active, with 88% of India’s ₹40 crore+ sales occurring there, NRI buyers—accounting for 15–30% of luxury sales—may be affected by travel disruptions. Developers are likely raising prices by over 5%, and cost pressures could persist even after shipping normalizes.