In light of the ongoing geopolitical tensions, the Confederation of Real Estate Developers' Associations of India (CREDAI) has formally requested the Ministry of Housing and Urban Affairs (MoHUA) to direct the Real Estate Regulatory Authority (RERA) to grant a three to six-month extension for project completion deadlines. In a letter dated April 30, 2026, CREDAI outlined how disruptions in raw material supplies and labor shortages, exacerbated by the US-Iran conflict, are significantly impacting construction timelines across the country. The organization emphasized that these challenges are largely beyond the control of developers and require urgent government intervention to ensure project viability.
The letter highlighted that the ongoing conflict in West Asia has led to severe disruptions in the supply chains for construction materials, as well as a scarcity of labor. For example, the Morbi ceramic hub in Gujarat, which is pivotal for India's tile production, has experienced interruptions due to fuel shortages. While production has begun to recover, the lingering effects include increased input and logistics costs, which have subsequently raised tile prices. CREDAI's communication indicates that the broader ecosystem for building materials—encompassing cement, steel, aluminum, and polymers—continues to grapple with challenges stemming from energy-related uncertainties and supply chain disruptions.
Moreover, the letter pointed out the significant labor shortages triggered by the reverse migration of workers from urban centers due to fuel shortages, further compounding the difficulties faced by developers. These issues have collectively placed considerable pressure on project execution, leading to delays and adversely affecting delivery timelines across various regions. CREDAI has urged the Ministry to recognize the situation as a force majeure event, thereby justifying the request for an extension on project completion timelines and facilitating necessary policy support.
Boman Irani, the chairman of CREDAI National and CMD of Rustomjee Developers, confirmed the association's efforts to seek relief measures from the government. He stated that the body has reached out to authorities, emphasizing the need for an extension in project timelines due to the extraordinary circumstances. The request for an extension reflects a broader concern within the real estate sector about maintaining stability and mitigating the adverse impacts of ongoing geopolitical issues. As the situation continues to evolve, the real estate industry remains vigilant, hoping for a timely response from the government to safeguard its interests and ensure project completion amidst these challenging conditions.