Housing ministry issues advisory to State RERAs to give project extension due to West Asia crisis

Ministry of Housing and Urban Affairs (MoHUA) has advised State Real Estate Regulatory Authorities (RERAs) to grant a four-month extension to developers in view of the impact of the ongoing situation in West Asia, which has disrupted global supply chains, led to shortages of construction materials and affected the timely execution of real estate projects.

Developers across the country have been demanding for upto 12-month extension as construction has taken a hit due to ongoing geopolitical crisis.

"The ongoing geopolitical situation in West Asia has significantly impacted the availability and cost of construction materials, resulting in unavoidable delays in project execution. The Ministry's recognition of these extraordinary circumstances under the Force Majeure provisions of RERA is a balanced and much-needed step for the real estate sector,” said Parveen Jain, President, NAREDCO.


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The National Real Estate Development Council (NAREDCO) said that extension of registration of real estate projects has been provided under the Force Majeure provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA).

The extension has been proposed for the completion timelines of registered real estate projects whose completion date, revised completion date or extended completion date falls on or after 28 February 2026.

“While the sector faced significant challenges in construction material supply chains and labour availability due to the war disruptions, the recommended extension will help developers in aligning project completion timelines with the current market scenario while relieving them from the unnecessary burden on individual projects. Meanwhile, the recommendation for State RERAs to issue a common order is a positive decision as it will ensure uniform implementation and reduce procedural delays,” said Shekhar Patel, President- CREDAI.

The advisory also recommends that State RERAs may issue a common order to avoid separate applications from individual projects.

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Credai Hyderabad said that the move is a significant acknowledgement by the Central Government that the disruption faced by the real estate sector is real, documented, and deserving of regulatory relief.

“However, we must state that a four-month extension, while a step in the right direction, falls significantly short of what the ground situation demands. Construction material costs — steel, aluminium, tiles, marble, glass, and electrical inputs — remain 18 to 35 percent above pre-crisis levels with no immediate signs of normalisation,” said B Jagannath Rao, President-Elect, CREDAI Hyderabad.

CREDAI Hyderabad had represented to the government seeking an extension of 12 months, that was derived from documented delays across material procurement, site execution, financial rearrangement, and residual conflict uncertainty. We stand by that assessment.



“Labour availability continues to be severely constrained, with migrant workforce returning to home states and skilled trade contractors operating at reduced capacity. Supply chains for Gulf-origin materials remain disrupted, with procurement lead times stretched by three to five months over normal cycles. In this context, four months does not even cover the procurement backlog, let alone the construction time lost,” Rao said.

Credai Hyderabad will be engaging with TGRERA and relevant department to seek a Telangana-specific extension order that reflects the actual scale of disruption faced by developers in the Greater Hyderabad Metropolitan Region.

“We request all State Real Estate Regulatory Authorities (RERAs) to implement the Ministry's advisory in letter and spirit. Timely extension of project registration and completion timelines will provide much-needed relief to developers facing circumstances beyond their control due to the ongoing war-related disruptions. At the same time, it will protect the interests of homebuyers by enabling projects to be completed in an orderly manner, avoiding unnecessary litigation and ensuring greater certainty for all stakeholders,” Jain said.

A uniform implementation of the Ministry's recommendations across all States will help maintain project momentum, reduce avoidable regulatory hurdles and support the timely delivery of ongoing developments.

The Ministry has received various representations from stakeholders of the real estate sector regarding the impact of the prevailing situation in West Asia which has adversely affected global supply chains, resulting in shortage of the construction materials, thereby impacting the timely construction of the real estate projects.

Under Section 7(3) of RERA, the Real Estate Regulatory Authority may, instead of revoking the registration, permit it to remain in force subject to such terms and conditions as it considers appropriate in the interest of the allottees.