Is the real estate industry in India really booming? If reports suggesting large scale recruitment being planned by property bigwigs this year to be believed, the industry, not affected by the current economic scenario at the global and local levels, is on a recruitment spree to take on board hundreds of technical and marketing professionals, anticipating a possible rebound.
After the tumultuous 2011 marked by series of interest rate revisions by Reserve Bank of India, builders are pinning their hopes on RBI softening interest rates, which will prompt home buyers to return to the market. The real estate industry is also expecting regulatory issues, which are holding up growth in key markets like Mumbai and New Delhi, will be resolved soon, according to a ET report .
As unsold residential space mounting pressure on the builders, prompting to adopt new marketing technique to empty their inventories. Nearly 985 million sq ft of residential space is due for delivery between 2011 and 2013 in existing projects, says real estate data and analytics provider, PropEquity.
"To execute the amount of space they have sold, developers will have to double their bandwidth," says Samir Jasuja, chief executive officer at PropEquity. In comparison, only about 522 million sq ft was delivered in 2008-10. In Mumbai, the financial capital of India, very few new project approvals have come through in 2011 and the new government is working on the new development guidelines for the city. In Delhi’s National Capital Region (NCR), land acquisition problems in Greater Noida have hampered construction of about 100,000 apartments.
Last year, the Allahabad High Court had asked the Greater Noida Authority to return acquired land to the farmers, but late during the year, it finally decided on higher compensation for farmers to settle the issue. After the clarity on Development Control Rules, the number of project launches in Mumbai could move up significantly resulting in greater project-related hiring.
Construction work in Greater Noida too is expected to resume when the NCR planning board gives its approval. Nearly 930,000 residential units are to be delivered across the country between 2011 and 2013, says PropEquity. And developers need a large number of people - working in construction and marketing - if it plans to achieve this target. "Once construction work resumes, we should be hiring another 35% additional staff to meet our requirements and deliver the apartments in the next two-three years," says Shiv Priya, from Amrapali Developers.
According to the Confederation of Real Estate Developer's Association of India CREDAI) estimates, developers across the country will do an additional hiring of at least 15% in 2012. Unitech, which had faced double whammy last year due to 2G spectrum scam and real estate debacle, has plans for recruitments to sell their already launched projects across the country.
The group has plans to increase employee strength by 15-20% in FY 2012-13. "In the first quarter, the growth will be 5% and 10-15% in the remaining three quarters. We plan to recruit people for design and architecture, sales, construction, CRM and property-management," says Ajay Chandra, managing director of Unitech.
"New recruitment is estimated to increase by 20% led by civil engineers, project managers, and most importantly, by sales and marketing teams," says Paras Gundecha, president of the Maharashtra Chamber of Housing Industry. Real estate companies across the country are increasing their hiring budgets. Bangalore-based Sobha Developers, for instance, has increased its budget by 15% and plans to double its employee strength.
"We have launched big projects, and need to ensure that they get completed on time. We expect the real estate market to further pick up with interest rates and inflation likely to come down," says JC Sharma, managing director of Sobha Developers. Another Bangalore-based developer Prestige Group will add 25% more in 2012-13 to its current staff strength of 400. "We will hire to support our construction and deliver on time," says Milan Khurana, chief human resource officer at Prestige Group. "Most of the fresh recruitment will be linked to approvals and launch of new projects," says Jagan Mohan, vice president, human resources, at Brigade Group.
According to staffing firm TeamLease, most of the hiring is happening at the entry level, especially by larger players who have a considerable number of projects under construction. "There is huge requirement at the entry level but companies are not investing too much on hiring managerial and senior level staff," says Rituparna Chakraborty, senior vice president, TeamLease Services.
Will these recruitments by construction firms help them post profit this fiscal? Only time will tell.
After the tumultuous 2011 marked by series of interest rate revisions by Reserve Bank of India, builders are pinning their hopes on RBI softening interest rates, which will prompt home buyers to return to the market. The real estate industry is also expecting regulatory issues, which are holding up growth in key markets like Mumbai and New Delhi, will be resolved soon, according to a ET report .
As unsold residential space mounting pressure on the builders, prompting to adopt new marketing technique to empty their inventories. Nearly 985 million sq ft of residential space is due for delivery between 2011 and 2013 in existing projects, says real estate data and analytics provider, PropEquity.
"To execute the amount of space they have sold, developers will have to double their bandwidth," says Samir Jasuja, chief executive officer at PropEquity. In comparison, only about 522 million sq ft was delivered in 2008-10. In Mumbai, the financial capital of India, very few new project approvals have come through in 2011 and the new government is working on the new development guidelines for the city. In Delhi’s National Capital Region (NCR), land acquisition problems in Greater Noida have hampered construction of about 100,000 apartments.
Last year, the Allahabad High Court had asked the Greater Noida Authority to return acquired land to the farmers, but late during the year, it finally decided on higher compensation for farmers to settle the issue. After the clarity on Development Control Rules, the number of project launches in Mumbai could move up significantly resulting in greater project-related hiring.
Construction work in Greater Noida too is expected to resume when the NCR planning board gives its approval. Nearly 930,000 residential units are to be delivered across the country between 2011 and 2013, says PropEquity. And developers need a large number of people - working in construction and marketing - if it plans to achieve this target. "Once construction work resumes, we should be hiring another 35% additional staff to meet our requirements and deliver the apartments in the next two-three years," says Shiv Priya, from Amrapali Developers.
According to the Confederation of Real Estate Developer's Association of India CREDAI) estimates, developers across the country will do an additional hiring of at least 15% in 2012. Unitech, which had faced double whammy last year due to 2G spectrum scam and real estate debacle, has plans for recruitments to sell their already launched projects across the country.
The group has plans to increase employee strength by 15-20% in FY 2012-13. "In the first quarter, the growth will be 5% and 10-15% in the remaining three quarters. We plan to recruit people for design and architecture, sales, construction, CRM and property-management," says Ajay Chandra, managing director of Unitech.
"New recruitment is estimated to increase by 20% led by civil engineers, project managers, and most importantly, by sales and marketing teams," says Paras Gundecha, president of the Maharashtra Chamber of Housing Industry. Real estate companies across the country are increasing their hiring budgets. Bangalore-based Sobha Developers, for instance, has increased its budget by 15% and plans to double its employee strength.
"We have launched big projects, and need to ensure that they get completed on time. We expect the real estate market to further pick up with interest rates and inflation likely to come down," says JC Sharma, managing director of Sobha Developers. Another Bangalore-based developer Prestige Group will add 25% more in 2012-13 to its current staff strength of 400. "We will hire to support our construction and deliver on time," says Milan Khurana, chief human resource officer at Prestige Group. "Most of the fresh recruitment will be linked to approvals and launch of new projects," says Jagan Mohan, vice president, human resources, at Brigade Group.
According to staffing firm TeamLease, most of the hiring is happening at the entry level, especially by larger players who have a considerable number of projects under construction. "There is huge requirement at the entry level but companies are not investing too much on hiring managerial and senior level staff," says Rituparna Chakraborty, senior vice president, TeamLease Services.
Will these recruitments by construction firms help them post profit this fiscal? Only time will tell.
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