The Haryana Real Estate Regulatory Authority (Rera) has granted a four-month extension to the completion timelines for real estate projects registered with the authority, citing issues faced by developers due to the West Asia conflict.
The decision is in line with the Ministry of Housing and Urban Affairs’ (MoHUA’s) advisory to state Reras, which classified the West Asia conflict as a war for the purpose of invoking force majeure clauses.
Haryana’s decision follows Maharashtra Rera, which had announced a similar four-month extension for realty projects.
According to market watchers, developers have been accounting for a four- to six-month delay in project completion timelines, depending on the stage of construction and the availability of key materials and equipment.
Pradeep Aggarwal, founder and chairman of Gurugram-based Signature Global, said that the geopolitical situation in West Asia has severely disrupted global supply chains, leading to acute shortages of vital construction materials.
Realtors added that there has been a 15-30 per cent rise in construction costs since the start of the conflict in February this year, with labour costs seeing a 15-20 per cent increase.
The cost of constructing buildings has also gone up due to increases in the prices of raw materials such as steel, cement, aluminium and fuel, as well as imported materials.
“While the real estate sector has demonstrated resilience and developers have continued execution through better planning, procurement and supply-chain management, prolonged global disruptions can create challenges beyond the industry’s control,” said Ashok Singh Jaunapuria, managing director and chief executive officer (CEO) of Gurugram-based SS Group.
Welcoming the Haryana Rera extension, Neeraj K Mishra, executive director at Ganga Realty, said that the order would provide developers with operational flexibility, enabling them to maintain construction quality, ensure regulatory compliance and continue project execution without undue pressure.
At the same time, transparency with homebuyers remains critical. Legal experts told Business Standard that the extension of timelines may help protect homebuyers from possible insolvency risks, as stalled projects will now have an extended completion timeline.
While the decision is intended to provide additional time for project completion, people in the know added that it should not be construed as permitting developers to increase prices for units already sold under registered agreements.
“Unless the agreement specifically provides for a permissible price adjustment or the increase is due to statutory levies, developers cannot pass on higher construction costs to existing purchasers,” said Vaibhav Suri, partner at law firm Cyril Amarchand Mangaldas.
Meanwhile, developers added that they remain confident that the step to extend timelines will provide financial relief to the sector, enabling them to safeguard project delivery and protect homebuyers’ interests.
“By recognising this as a force majeure event, the authority has shown a deep understanding of the unprecedented challenges currently burdening the real estate sector,” Mishra said.
