The real estate developers' body Credai Ahmedabad has formally requested the Gujarat Real Estate Regulatory Authority (GujRERA) to grant a six-month extension for ongoing housing projects under the force majeure provision of the RERA Act. The association cited rising construction costs, supply disruptions, and labour shortages as key reasons for the delay.
Impact of West Asia Conflict on Construction
In a representation submitted to the regulator, Credai Ahmedabad highlighted that the ongoing conflict in West Asia has severely affected the availability of crude-linked construction materials. This disruption has hindered project execution and placed significant pressure on financial planning across the sector. The association noted that developers are struggling to complete ongoing projects on time, with new launches and construction activities also facing potential delays.
Sharp Increase in Material Costs
According to the body, prices of key construction inputs such as cement, steel, tiles, aluminium, PVC pipes, paints, ready-mix concrete, cement blocks, and waterproofing materials have risen sharply since the conflict began. Suppliers have reportedly increased prices by 30% to 60%, while availability remains uncertain. This spike in input costs has raised overall project expenses by 10% to 20%, upsetting budgets and cash-flow estimates prepared at the time of project registration.
Call for Relief Under Section 6 of RERA
The association argued that the prevailing conditions are beyond the control of developers and qualify for relief under Section 6 of the Real Estate (Regulation and Development) Act, which allows extension of project timelines in force majeure situations. Ankur Desai, secretary of Credai Ahmedabad, stated, "Developers are facing an extraordinary situation where both availability and affordability of essential construction materials have been hit at the same time."
Labour Shortages and Summer Challenges
The body also highlighted worsening labour shortages, noting that construction work has become harder to sustain during the summer season due to a reduced workforce and irregular supply of materials. Drawing a comparison with the Covid-19 period, Credai Ahmedabad requested GujRERA to grant a blanket six-month extension to project completion deadlines. This would ensure developers are not penalised for delays caused by external factors.
Request for Market Intervention
Desai added that the association has also sought intervention from the regulator to improve the supply of raw materials and curb what it described as artificial price escalation in the market. The developers hope that these measures will provide much-needed relief and enable the timely completion of housing projects.
