West Asia war hits Noida, Gurgaon real estate: Costs rise, projects delayed

The Ministry said it received various representations from stakeholders complaining that the current situation had ‘adversely’ impacted supply chains, resulting in a shortage of construction material, and, consequently, delays in completing real estate projects.

The concerns

Amit Aggarwal, director of Karyan Group, has three ongoing projects — two commercial and one residential — in Noida’s Wave City and along NH-24 in Ghaziabad.

He said the projects were affected soon after they began in December last year.

“Since the start, we take timelines with a cushioned period. But this situation is rare. We have completion deadlines for 2028 and 2030, but if the projects are being delayed due to raw materials from the start, it creates problems,” he said.

The impact was first felt in June, he said, when the time taken to procure raw materials, which was initially around 15 days, stretched to more than two months.

“Every high-rise project uses an aluminium shuttering technique, making the metal the most crucial component. For this, we heavily depend on vendors from India who source it from outside,” said Aggarwal.

Apart from delays in procurement, Agrawal added that the cost has increased by 40%. “Prices shot up exponentially, due to which the project cost also escalated. Now we are forced to do budgeting again so that the cost remains low without compromising the quality as well,” he said.

For Nimbus Group CEO Sahil Agarwal, which has commercial and residential projects in Noida and Greater Noida, the past few months have not brought a complete halt to construction but have changed how projects are managed.

“Today, even after placing orders well in advance, there is uncertainty around when certain critical components will actually reach the site. As a developer, that changes the entire rhythm of project execution,” he said.

The biggest challenge, Sahil said, has been with specialised equipment and imported components such as elevators, HVAC (Heating, Ventilation, and Air Conditioning) systems, electrical equipment and premium finishing materials.

“A delay in one of these can affect multiple downstream activities, even if the overall construction is progressing well,” he said.

“We’ve also had to contend with higher logistics costs and longer shipping routes, which inevitably put pressure on project budgets.”

Sahil added that though builders are now looking at domestic alternatives, certain products continue to depend on global supply chains.

“Regulatory flexibility in such situations is important because it enables developers to stay focused on delivering projects responsibly rather than making short-term decisions simply to meet deadlines,” he added.

Extension offers relief to builders

For another real estate developer, Rishabh Periwal, Senior Vice-President of Pioneer Urban Land and Infrastructure Ltd, the four-month extension helps to ward away the immediate threat of unfair penalties and litigations for delays which, he said, are completely outside a builder’s control.

Periwal said this not only gives respite to builders, but for homebuyers as well.

“The regulatory framework is a double-edged sword that prioritises long-term project viability over short term possession dates. While a four-month delay creates immediate inconvenience by forcing buyers to manage extended rent or delays in move-ins, it shields them from far worse alternatives of abandoned projects, compromised project quality, and developer insolvency,” he explained.

The firm has projects across Gurgaon.

Dinesh Gupta, President of the Confederation of Real Estate Developers’ Associations of India (CREDAI), Western UP, welcomed the advisory, stating that this extension will help ease financial stress, maintain construction momentum and ultimately protect the interests of both developers and homebuyers.