Extension of 3-6 months to real estate projects urged by CREDAI to MoHUA in wake of US-Iran war

By Bricksnwall | 2026-05-14

CREDAI has advised the Centre to treat the current scenario as a force majeure for the real estate sector in the wake of the US-Iran war effect.

The Confederation of Real Estate Developers' Associations of India (CREDAI), the real estate developers' body has written to the Ministry of Housing and Urban Affairs to ask the Ministry to tell the state RERA authorities to give a blanket 3 to 6 months extension for project completion timelines and consider the ongoing US-Iran war as a force majeure for the real estate sector.

The situation has created raw material supply delays and labour shortages, which are delaying project execution across the country, the developers body stated.

In a letter to the Secretary of the Ministry of Housing and Urban Affairs dated April 30, 2026, Credai said the ongoing situation in West Asia has affected the supply chains of building material and availability of workers adversely harming the real estate projects across India.

The building material supply chains and availability of labour continue to be subject to major interruptions beyond of the sector’s control. The continuous fluctuations in energy sources have affected output in major manufacturing clusters. Significantly, the Morbi ceramic hub in Gujarat, which makes a major contribution to India’s tile production, has been hit by temporary difficulties due to fuel shortages stemming from the continuing West Asia conflict. Production has picked up gradually but the effect is still reverberating in the form of higher input and logistic expenses, resulting in higher prices of tiles,” Credai said in its letter.

In the light of the above, “we humbly request the Ministry to consider: Recognising the present situation as a force majeure case for the real estate sector; “Advising and guiding RERA Authorities across States to grant a blanket extension of 3 to 6 months for project completion timelines; Providing necessary policy support to mitigate adverse impact on project execution and sectoral stability,” it said.

Broader construction materials ecosystem comprising cement, steel, aluminium and polymers continues to be constrained by disrupted supply chains and energy-related uncertainty, Credai said.

Shortages of key fuels such as LPG have led to reverse movement of labour from metropolitan hubs, worsening workforce shortages at project sites. These combined issues, mainly on account of supply chain disruptions and staff availability, are putting significant pressure on project execution leading in delays and significantly impacting delivery timelines across the country," Credai in the letter.

Credai seeks 3-6 months blanket extension in project completion dates for RERA certified projects

Credai in its letter had asked the Centre to consider the ongoing crisis as a force majeure event for the real estate sector in this regard. The body also urged the RERA authorities in states to offer a blanket extension of three to six months for project completion deadlines as well as the appropriate policy support to alleviate the negative impact on project execution and the general stability of the sector.

Boman Irani, Credai National chairman and CMD of Rustomjee Developers, revealed the builders’ group has written to the government demanding relief measures.

“Credai has approached the authorities seeking extension of timelines and has asked them to consider the current situation as force majeure. “We are also writing or have written to RERA authorities for extensions in project completion timelines,” Irani said.

“We’re one of the developers that are utilizing precast construction technology at the company level. With a dearth of skilled workers, there is a rising emphasis on mechanisation and components factory-built for assembly on site. “We have tied up with RPD of Singapore for this and are moving towards it step by step,” Irani added.

Source: Hindustan Times