AREIDA Flags Soaring Costs, Policy Lapses as Guwahati Real Estate Faces Delays and Urban Planning Strain

Staff Reporter

GUWAHATI: The ongoing unrest in West Asia has far-reaching ramifications for the real estate sector, which is receiving a double blow – cost overruns and delays in project completion.

Assam Real Estate and Infrastructure Developers’ Association (AREIDA) president PK Sarma expressed deep concern over the ongoing conflict in West Asia, stating that the war has severely impacted the construction sector due to sharp increases in material and logistic costs. “The construction cost has risen by nearly 25 per cent, leading to a serious cost escalation and project delay across the industry,” he said.

Sarma said that the prices of all construction materials have increased, which affects the total cost, and buyers will have to bear the consequences. He said that with the hike in prices of construction materials, the builders have slowed down their projects.

Sarma said that the AREIDA would soon make a formal appeal to the Real Estate Regulatory Authority (RERA) that such extraordinary geopolitical developments be considered under ‘force majeure’ provisions in cases involving unavoidable project delays.

On scientific planning for Guwahati, Sarma said, “The population boom is leading to increased pressure on the limited urban land resources. The state government’s projected population indicates that the population of the Guwahati metropolitan area alone will be 40 lakh during the upcoming master plan period. AREIDA emphasised the necessity of strict scientific urban planning and effective implementation mechanisms to manage such growth.

In this context, AREIDA expressed concern that important policy frameworks such as the Land Pooling Regulations, 2015, and the Assam State Township Policy, 2023, continue to remain largely unimplemented, and they need immediate activation. The development authorities across the state should focus on this aspect rather than building permission as per constitutional mandate.

Sarma said, “Real estate promoters are frequently blamed for deficiencies in civic amenities and public infrastructure, while private developers are actively contributing to the creation of housing, commercial complexes, hotels, hospitals, etc. Their responsibilities remain confined to facilities within their project premises. In the larger interest of the public and in the interest of scientific urban development, all ambiguities and discretionary provisions within the regulatory framework must be eliminated through a transparent and technology-driven system.”

On urban flooding and waterlogging, the AREIDA observed that the solution does not lie in ad hoc measures but in implementing the extensive scientific studies already conducted by Tahal Group (Israel) in 2008 and Royal Haskoning DHV (the Netherlands) in 2024 and Assam State Disaster Management Authority (ASDMA).

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