RERA extension: A relief for builders, a costly wait for homebuyers
The Union Ministry of Housing and Urban Affairs has advised state Real Estate Regulatory Authorities (RERAs) to allow a four-month extension for housing projects registered on or before February 28, 2026. The advisory, issued amid the ongoing conflict in West Asia, cites material shortages and supply chain disruptions as reasons for the relaxation.
The Real Estate (Regulation and Development) Act, 2016, generally requires developers to adhere to promised timelines. The extension is intended to shield builders from penalties when delays are caused by factors beyond their control. Developers have largely welcomed the move, arguing it will help them complete projects without legal pressure.
Homebuyers, however, are worried. Possession delays can stretch their finances, especially those paying both rent and home loan EMIs. Many had made lifestyle and career plans around the expected handover of their homes.
Snehith Reddy Meda, partner at E-infra, which is developing Moonglade Apartments in the Kokapet-Narsingi-Manchirevula belt and Skyven Apartments in Narsingi, said the extension reflects the current market stress. “The market is already facing challenges with both sales and delivery execution, and now, with this four-month extension, it seems there will be more challenges to come,” he said, pointing to a 7% year-on-year decline in housing sales in the top seven cities in Q1 and a further 6% drop in Q2. Over 5.4 lakh homes are slated for delivery this year, he added.
Sanjay Chugh, city head and director at ANAROCK Property Consultants, Chennai, said buyers in projects genuinely hit by supply-chain issues may have to wait longer. “There could be some impact on possession timelines in projects genuinely affected by supply-chain disruptions, and consequently, some buyers may have to manage EMIs and rentals for a slightly longer period,” he said.
The delay has already begun to hurt some buyers. Deepak Subramani, an employee of HCL Technologies in Malaysia, bought a flat at NCC Urban Signature Towers in Shollinganallur, Chennai. He said he had to extend his rented accommodation by over three months, and “it cost me additional rent and bank loan EMIs.” He now expects developers to share revised timelines and provide regular updates.
In emerging real estate markets, buyers are particularly sensitive to delays. Hardik Shah, director of Shyam Group-Dholera SIR, noted that buyers look beyond brochures. “In a nascent market, buyers aren’t only buying a unit, they’re basically buying a timeline and a kind of promise. Before they commit, they’ll look at how far the development has moved, whether the physical backbone such as roads, power, and water are actually in place or, at least, on schedule. They will also check how disciplined the developer has been in meeting prior milestones, not just in theory but in the real flow of things,” he said.
An ANAROCK report warns that a prolonged West Asia conflict could test housing delivery timelines across India in 2026. Mumbai, Pune, and Bengaluru together account for around 70% of the homes expected to be completed in 2026, and may face the biggest execution challenges. The National Capital Region (NCR) has about 39,000 units scheduled for completion this year.
Historical data shows how external shocks affect delivery. In 2020, when the pandemic disrupted the economy, only 2.14 lakh of the planned 4.66 lakh homes in the top seven cities were delivered — just 46% — due to lockdowns, labour migration, and supply chain bottlenecks.
The four-month extension gives developers some breathing room, but it effectively shifts the uncertainty onto homebuyers. While the government’s advisory aims to prevent legal hardship for builders, buyers are left to manage the financial and emotional cost of waiting. The full impact will depend on how quickly global supply chains stabilise and whether developers use the additional time genuinely to complete projects.
