The central government has advised state real estate regulatory authorities (RERAs) to extend the registration and completion timelines of real estate projects by four months on account of delays caused by the West Asia war. According to reports from ETV Bharat, the advisory by the Union Ministry of Housing and Urban Affairs (MoHUA), dated July 31, 2026, applies to registered real estate projects whose completion date, revised completion date or extended completion date falls on or after February 28, 2026. As per Business Standard, the advisory is different from a directive, meaning project developers under RERA will have to adhere to directions issued by respective authorities. Legal experts note that for homebuyers, the main impact is that developers will not be treated as 'in default' for this four-month period if the extension is granted, reducing the window during which buyers can claim delay compensation for the extended period.
The ministry cited force majeure conditions arising from the West Asia war and advised state regulators to extend registration and completion timelines for eligible projects. As reported by ETV Bharat, the advisory invokes the force majeure provisions under the Real Estate (Regulation and Development) Act, 2016 (RERA), acknowledging that the conflict has severely disrupted global supply chains and caused construction material shortages, leading to project execution delays nationwide. According to Business Standard, developers have been factoring in a four-to-six-month delay in project completion timelines, depending on the stage of construction and availability of key materials and equipment. Realtors reported a 15 to 30 per cent rise in construction costs since the start of the conflict in February this year, with labour costs increasing by 15 to 20 per cent. "The cost of constructing buildings has gone up owing to increases in the prices of raw materials such as steel, cement, aluminium, fuel, imported materials, and even logistics charges," said Ashish Bhutani, CEO of Noida-based Bhutani Infra.
The ministry's advisory has been welcomed by both developers' bodies, with CREDAI and NAREDCO expressing strong support for the regulatory relief. Shekhar G Patel, President at CREDAI National, stated that the ministry's advisory recommending a four-month extension for eligible registered real estate projects is a positive step taken in line with the sector's request. Legal experts emphasize that existing homebuyers continue to be protected by the terms of their agreements and safeguards under RERA. "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. Parveen Jain, NAREDCO President, described the advisory as a timely and pragmatic step that acknowledges the impact of geopolitical tensions on construction activity.
Under Section 6 of RERA, project registration timelines may be extended in case of force majeure events, including extraordinary situations such as war or similar disruptions beyond the control of developers. The advisory also referred to Section 7(3) of RERA, under which a real estate regulatory authority may permit a project registration to remain in force, instead of revoking it, subject to terms and conditions considered appropriate in the interest of allottees. As per ETV Bharat, the Ministry has advised all RERAs to issue suitable orders extending the registration and corresponding completion timelines of registered real estate projects whose original, revised or previously extended completion dates fall on or after February 28, 2026. The extension may be granted for a period of four months. The regulatory decision provides much-needed relief to the sector by enabling developers to better manage these unprecedented challenges while safeguarding project delivery, as stated by Dinesh Gupta, President of CREDAI Western UP. Ashok Singh Jaunapuria, MD and CEO of SS Group, noted that developers are now prioritising minimising disruptions, maintaining construction momentum and delivering projects on time while upholding customer trust.
