Summary of this article
MahaRERA grants four-month project extension.
Supply disruptions affected construction timelines.
Eligible developers receive relief from delays.
The Confederation of Real Estate Developers’ Association of India (CREDAI) had urged the Ministry of Housing and Urban Affairs (MoHUA) to appeal to the Real Estate Regulatory Authorities (RERA) of each state to grant a three- to six-month extension for project completion timelines. The request came 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 proposal 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, hoping to bring temporary relief, which would ensure smoother project delivery and prevent unnecessary triggers linked to delayed completion.
What's The Update?
The Ministry upon receiving the request had forwarded it over to the state RERAs, who would have the authority to make the call for the duration of the extension, as well as which developers and projects would be eligible for this. The Maharashtra Real Estate Regulatory Authority (MahaRERA) has adopted the appeal and provided a blanket four-month extension for registered housing projects across the state. This would provide much-needed relief to the eligible developers for the projects without providing extra compensation to the buyers for the delay.
According to MahaRERA, the conflict has created challenges for the construction sector by disrupting supply chains and affecting the availability of key materials. These disruptions have the potential to slow construction activity and consequently delay project completion timelines.
The developers' body had highlighted that the real estate sector has been witnessing 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 fluctuating material prices, labour shortages, and slow movement in the logistics and procurement system.
However, the appeal from CREDAI also noted 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.
This balanced regulatory approach is important for sustaining growth in the Indian housing market, as the residential market is witnessing a rise in investments.
