Realty industry hails govt advisory to extend project completion timeline by 4 months in view of West Asia conflict

Realtor bodies CREDAI and Naredco have hailed the government's advisory to state real estate regulators to extend project completion timelines by four months, saying this will help developers in dealing with the shortage of construction raw materials.

They urged the state real estate regulatory authorities to extend the timelines at the earliest, as this would give huge relief to the industry.

The Union Housing and Urban Affairs Ministry on Friday issued an advisory asking all state Real Estate Regulatory Authorities (RERAs) to grant a four-month extension in the registration and completion timelines of eligible real estate projects affected by disruptions arising from the ongoing conflict in West Asia.

The ministry, in an advisory issued to all regulatory authorities, said the prevailing situation in West Asia has adversely affected global supply chains, resulting in a shortage of construction materials, thereby impacting the timely construction of the real estate projects.

On the development, Shekhar Patel, President- CREDAI, said, "The Ministry's advisory recommending a four-month extension for eligible registered real estate projects is a positive step taken in line with the sector's ask." He welcomed the Ministry's timely step towards providing regulatory clarity and the continued support to the sector.

"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," Patel said.

The ministry had received several representations from stakeholders in the real estate sector seeking relief in view of the disruptions affecting timely completion of projects.

Pradeep Aggarwal, Founder and Chairman of Signature Global, said the recent global supply chain disruptions stemming from the West Asia situation have posed unprecedented, unforeseen challenges for the entire real estate sector, severely impacting the availability of critical construction materials.

"By invoking the Force Majeure clause and granting a four-month extension, the Government has demonstrated remarkable foresight and a deep understanding of on-ground realities," he added.

Aggarwal said the industry will get time to navigate these shortages without compromising on quality.

Parveen Jain, President of Naredco, said, "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." Jain urged all state RERAs to implement the ministry's advisory in letter and spirit.

He said the 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.

In view of the Force Majeure conditions arising from the conflict, the ministry has advised regulatory authorities to issue suitable orders extending the registration and corresponding completion timelines of registered real estate projects by four months.

The relief would apply to projects whose original, revised or already extended completion date falls on or after February 28, 2026.

Published on August 1, 2026