AHMEDABAD: The real estate developers’ association, Credai Ahmedabad, has requested the Gujarat Real Estate Regulatory Authority (GujRERA) for a six-month extension on ongoing housing projects under the force majeure provision of the RERA Act. The appeal comes in light of increased construction costs, supply chain disruptions, and labor shortages.
In its communication to the regulator, the association highlighted that the ongoing conflict in West Asia has severely impacted the availability of crude-related construction materials, which is hindering project execution and straining financial planning in the sector.
Developers are struggling to meet completion deadlines for current projects, with new launches and construction activities also expected to experience delays.
According to the association, the costs of essential construction inputs—including cement, steel, tiles, aluminum, PVC pipes, paints, ready-mix concrete, cement blocks, and waterproofing materials—have surged significantly since the onset of the conflict. They report that suppliers have raised prices by 30% to 60%, causing uncertain availability.
This rise in input costs has inflated overall project expenses by 10% to 20%, disrupting budgets and cash-flow estimates made during project registration.
Credai Ahmedabad argues that these challenging conditions are beyond developers’ control and warrant relief under Section 6 of the Real Estate (Regulation and Development) Act, which provides for timeline extensions in force majeure circumstances.
“Developers are confronting an extraordinary situation with simultaneous impacts on both the availability and affordability of crucial construction materials,” stated Ankur Desai, secretary of Credai Ahmedabad.
The association also pointed out the worsening labor shortages, noting that maintaining construction work during the summer has become increasingly difficult due to a reduced workforce and inconsistent material supply.
Drawing parallels with the COVID-19 period, Credai Ahmedabad has asked GujRERA to grant a blanket six-month extension on project completion deadlines, ensuring developers are not penalized for delays caused by external circumstances.
Desai further indicated that the association is seeking the regulator’s intervention to enhance the supply of raw materials and address what they describe as artificial price inflation in the market.
