India's real estate industry has approached the Ministry of Housing and Urban Affairs (MoHUA), seeking relief measures amid disruptions caused by the ongoing conflict in West Asia, according to CREDAI.
Developers and industry associations have urged the government to consider granting force majeure status for ongoing real estate projects, citing mounting pressure from supply chain disruptions, rising input costs and labour shortages that are impacting project execution timelines across the country.
As part of the demand, developers have sought a blanket extension of three to six months from Real Estate Regulatory Authority (RERA) bodies for ongoing residential and commercial projects.
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Industry stakeholders said the ongoing geopolitical tensions and energy-related disruptions have significantly affected availability and pricing of key construction materials including cement, steel, aluminium and polymers. Rising logistics costs and uncertainty in fuel and energy supplies are further adding to pressure on project execution.
A temporary disruption in operations at Gujarat's Morbi ceramic manufacturing hub has also pushed tile prices higher, creating additional stress for developers already dealing with elevated construction costs.
“The sector is witnessing a combination of supply chain disruptions and cost inflation which is affecting delivery schedules across multiple projects,” an industry executive said.
Developers noted that the sharp rise in raw material costs over recent weeks has impacted procurement planning and construction budgets. Cement and steel prices remain volatile, while logistics and transportation costs have increased due to fuel-related uncertainties linked to the West Asia conflict.
Industry bodies have warned that unless supportive measures are introduced, delays in project completion could intensify across several regions.
Apart from input cost pressures, labour availability has emerged as another major concern for the sector. Developers said shortages of workers are impacting construction activity in multiple cities and industrial clusters.
According to industry sources, LPG shortages in certain regions have triggered reverse migration of workers from urban centres, leading to manpower constraints at project sites. Labour movement linked to ongoing regional and election-related disruptions has further worsened worker availability.
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“Execution timelines are being impacted because labour availability has reduced at a time when projects are already dealing with raw material pressures,” a developer source said.
The real estate sector has therefore requested the Centre to intervene and support the industry during the current period of uncertainty. Developers are seeking policy-level support to reduce operational disruptions and avoid penal action for delays arising from circumstances beyond their control.
Industry bodies have argued that granting force majeure recognition and temporary RERA extensions would help developers manage project execution more effectively without escalating financial stress.
The sector also fears that prolonged disruption could affect housing deliveries, increase project costs and potentially impact homebuyers if construction schedules continue to get delayed.
The latest appeal comes at a time when India's real estate sector has been witnessing steady demand recovery across residential and commercial segments. Developers say maintaining construction momentum is critical to sustaining growth, employment generation and housing supply.
Industry executives remain hopeful that the disruptions will gradually ease over the next few months, but they maintain that temporary regulatory and policy support will be necessary to cushion the impact of the ongoing geopolitical and supply chain challenges on the sector.
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