April 2026 – Are home prices going down?
No one can predict the future.
However, there is one key factor pointing in the opposite direction: construction costs, mainly due to rising raw material prices.
What happens when material prices go up?
When the cost of materials increases, the cost of building homes naturally rises as well.
Have we seen this in practice?
Yes. After Covid, disruptions in supply chains caused material shortages and significantly increased construction costs worldwide.
So, do more expensive materials mean more expensive new builds?
Exactly. When raw material costs rise, prices of newly built properties also increase.
What about properties that are already built?
When prices of new builds rise, older properties usually increase too, since they act as substitutes in the market.
Why is this important again now?
Tensions around the Strait of Hormuz are creating concerns about energy costs, transportation, and supply chains.
What does this mean for the real estate market?
There are already signs that the war in Iran and the crisis around the Strait of Hormuz have started to push construction material costs higher.
The key takeaway?
The real estate market is not driven only by demand.
Very often, major changes start from construction costs. This means that if the Iran conflict continues for the next 2-3 months then we will see increase in property prices.
What do you think?
Is now a good time to buy property, or is it better to wait in case prices fall? Send me an email or text me on whatsapp, am curious to know your point of view.
Konstantinos Andreou
Founder
Licensed Real Estate Agent
Property Valuer
MSc in Real Estate
