Gujarat Developers Seek RERA Deadline Relief Amid Rising Construction Costs

Real estate developers in Gujarat have requested the Gujarat Real Estate Regulatory Authority (GujRERA) to extend deadlines for ongoing housing projects, citing rising construction costs and supply-related disruptions that are affecting project execution.

The appeal has been made by CREDAI Ahmedabad, which informed the regulator that developers are facing sustained cost pressures across multiple construction inputs. Prices of materials such as cement, steel, aluminium, tiles, PVC pipes, paints, ready-mix concrete, and waterproofing products have increased significantly over recent months, making it difficult to maintain original project budgets and timelines.

Developers indicated that input costs have risen in the range of 30% to 60%, while overall project costs have gone up by around 10% to 20%. These increases have impacted projects that were planned and registered earlier under different cost assumptions, leaving limited scope to absorb the additional financial burden without affecting delivery schedules.

The industry body also pointed out that supply chain disruptions continue to remain a concern. It explained that global developments, particularly the ongoing tensions in West Asia, have affected the availability and pricing of crude-linked materials and logistics, leading to uncertainty in procurement cycles. In addition, a seasonal dip in labour availability has further slowed construction activity at project sites.

CREDAI Ahmedabad has urged GujRERA to allow a six-month extension for project completion under the force majeure clause of the Real Estate (Regulation and Development) Act. The association conveyed that the current situation is beyond the control of developers and is comparable to earlier disruptions during the pandemic, when similar relief measures were granted across states.

Developers have also flagged that without such support, ongoing projects may face delays in meeting committed timelines, which could affect both developers and homebuyers. The situation may also lead to a cautious approach toward new project launches, as builders reassess cost structures and execution risks before committing to fresh developments.

This request comes at a time when the Gujarat real estate market is showing signs of moderation in new project registrations, with developers focusing more on completing existing projects amid rising input costs. At the same time, the regulator has been maintaining strict oversight on project timelines and compliance, including taking action against developers for violations related to financial discipline and delays.