Real Estate Boom Faces Manpower Crunch as Workers Opt for Other Sectors
The real estate market is facing a severe manpower crunch as workers prefer better-paying jobs in sectors like quick commerce and logistics, amidst a sharp turnaround in the industry since the pandemic.
Real EstateManpower CrunchConstruction IndustryQuick CommerceLogisticsReal Estate NewsSep 12, 2024
This year onwards, we are coming up with an incentive programme in which the worker or a team will get compensated if they complete their task before time and stay back at the project sites during festive season, said Megha Goel, chief human resources officer of Godrej Properties Ltd. The industry is facing a manpower crunch for construction workers, architects, and sales executives who can work on affordable to luxury projects.
Manoj Gaur, chairman of Credai (Confederation of Real Estate Developers’ Associations of India) estimated that there is at least a 25% shortage of manpower in the sector at this time. Companies are offering incentives for additional shifts, target-based incentives, and contractors are paid more if they manage to finish work in fewer days, Gaur said.
Hiranandani Group's managing director Niranjan Hiranandani said there is a shortage of at least 1,000 workers in his projects, including carpenters, bar benders, and plumbers. Fifteen years ago, if I needed 100 skilled workers, I got 500, and now if I need 100, there are barely 20 skilled who meet the criteria, he said.
Weather and safety concerns, poor living conditions, and better compensation from sectors like quick commerce and logistics are deterrents to join the realty sector. The major chunk of workforce in the blue-collared profiles come from Odisha, West Bengal, Chhattisgarh, Bihar, and Rajasthan. They get paid ₹13,000-18,000 a month, but would prefer a quick commerce, delivery, logistics job over construction work, said Aditya Narayan Mishra, CEO of CIEL HR Services, a recruitment firm.
The real estate market has seen a sharp turnaround since the pandemic on the back of rising sales and property prices, lower unsold stock, aggressive land-buying, and project launches. The boom is not limited to metro cities but has galloped into tier-II and tier-III towns as well.
Meanwhile, recruiters who work with the real estate and construction firms as vendors are hosting job fairs in villages to get the workforce. We look for diploma holders, graduates from industrial training institutes (ITIs), and search through job sites that have a larger reach for white-collared jobs in the sector, said Mishra of CIEL HR Services.
Frequently Asked Questions
What is the current state of the real estate market in India?
The real estate market has seen a sharp turnaround since the pandemic, with rising sales and property prices, lower unsold stock, and aggressive land-buying and project launches.
What is the main reason for the manpower crunch in the real estate and construction industries?
Workers are preferring better-paying jobs in sectors like quick commerce and logistics, amidst poor living conditions and safety concerns in the realty sector.
Which states are the major contributors to the blue-collared workforce in the real estate sector?
Odisha, West Bengal, Chhattisgarh, Bihar, and Rajasthan are the major contributors to the blue-collared workforce in the real estate sector.
What are the incentives being offered by companies to retain blue-collared workers?
Companies are offering incentives for additional shifts, target-based incentives, and contractors are paid more if they manage to finish work in fewer days.
How are recruiters addressing the manpower crunch in the real estate and construction industries?
Recruiters are hosting job fairs in villages to get the workforce, and looking for diploma holders, graduates from industrial training institutes (ITIs), and searching through job sites that have a larger reach for white-collared jobs in the sector.
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