CREDAI Seeks 3 To 6 Months RERA Extension Amid Construction and Supply Chain Challenges

The Confederation of Real Estate Developers’ Association of India (CREDAI) has urged the Ministry of Housing and Urban Affairs (MoHUA) to appeal to the Real Estate Regulatory Authorities of each state to grant a three- to six-month extension for project completion timelines. The request comes at a time when developers across several regions continue to face execution-related upheavals. This includes supply chain disruptions, rising construction costs, and delays in approvals.

This proposed extension is expected to help developers maintain their end of compliance under the Real Estate (Regulation and Development) Act. This appeal comes at a time when the country is facing the side effects of the West Asia conflict. CREDAI’s appeal reduces pressure on the ongoing residential and commercial projects. This would also bring temporary relief, which would ensure a smoother project delivery and prevent unnecessary triggers linked to delayed completion.

The developers' body has highlighted that the real estate sector has been witnessing a strong demand over the past year, especially in the key markets of NCR, Mumbai Metropolitan Region, Pune and Bengaluru. However, despite the global tensions, developers have maintained a healthy launch and sales activity, while also adhering to timelines. This discipline is to be noted as the market has reacted globally due to the fluctuating material prices, labour shortages, and slow movement in the logistics and procurement system.

However, the letter also notes that the sector continues to face significant disruptions in construction material supply chains and labour availability due to circumstances beyond its control. The ongoing volatility in energy supplies has impacted production across key manufacturing clusters. This is most visible in the Morbi ceramic hub in Gujarat, which accounts for a substantial share of India’s tile production, and experienced temporary disruptions. This was due to the fuel shortages across India.

Industry stakeholders have noted through several reports that the infrastructure-led growth across states has accelerated, and even new projects have been launched. CREDAI’s appeal extends the project timelines that would support the developers in terms of finances and reputation, as well as protect the homebuyers' interests by making sure the projects are completed in a structured manner and that the developer doesn’t compromise on materials to meet the deadlines.

This balanced regulatory approach is important for sustaining growth in the Indian housing market, as the residential market is witnessing a rise in investments.