Ahmedabad: Real estate developers’ body Credai Ahmedabad has urged the Gujarat Real Estate Regulatory Authority (GujRERA) to grant a six-month extension for ongoing housing projects under the force majeure provision of the RERA Act, citing rising construction costs, supply disruptions and labour shortages.In a representation to the regulator, the association said the ongoing conflict in West Asia has affected the availability of crude-linked construction materials, disrupting project execution and putting pressure on financial planning across the sector.Credai Ahmedabad said developers are facing difficulties in completing ongoing projects on time, while new launches and construction activities were also likely to be delayed.According to the body, prices of key construction inputs such as cement, steel, tiles, aluminium, PVC pipes, paints, ready-mix concrete, cement blocks and waterproofing materials have risen sharply since the conflict began. Suppliers, it claimed, have increased prices by 30% to 60%, while availability has remained uncertain.The association said the spike in input costs has raised overall project expenses by 10% to 20%, upsetting budgets and cash-flow estimates prepared at the time of project registration.It argued that the prevailing conditions were beyond the control of developers and qualify for relief under Section 6 of the Real Estate (Regulation and Development) Act, which allows extension of project timelines in force majeure situations.“Developers are facing an extraordinary situation where both availability and affordability of essential construction materials have been hit at the same time,” said Ankur Desai, secretary of Credai Ahmedabad.The body also highlighted worsening labour shortages, saying construction work has become harder to sustain during the summer season due to a reduced workforce and irregular supply of materials.Drawing a comparison with the Covid-19 period, Credai Ahmedabad requested GujRERA to grant a blanket six-month extension to project completion deadlines so that developers are not penalised for delays caused by external factors.Desai said the association has also sought intervention from the regulator to improve supply of raw materials and curb what it described as artificial price escalation in the market.
