Interview: Job opportunities in Indian real estate and construction sectors

The real estate and construction sector in India plays a significant role in terms of employment offered

Yasmin Taj, Ascent (TOI)

Posted On Thursday, January 21, 2010 at 01:20:59 PM

 

1) Please give us an overview of the real estate industry and how it is doing presently. 

The real estate and construction sector in India plays a significant role in terms of value contribution to the country’s economy and in terms of employment offered and this role is expected to grow even further. Growing at an approximate 35 per cent per annum, the Indian real estate and construction industry is expected to reach US$ 180 billion sector by 2020.

India is on the verge of witnessing a sustained investment in infrastructure build up with the Planning Commission having proposed an investment of around US$ 500 billion in the eleventh five-year-plan period (FY 2007- 2012), which is nearly 2.3 times more than the previous five-year-plan. The construction industry will thus witness a strong growth wave powered by large spends in housing, road, ports, water supply and airports development. Larger investments in infrastructure will result in an increased demand for construction and real estate professionals. The residential segment is projected to drive real estate demand in the country, accounting for nearly 63 per cent of the total space demand (amounting to 687 million square feet) during the period 2008-12.

With several growth drivers such as increased investment in infrastructure, demand for residential and commercial property, and favourable government initiatives, the ability of the real estate and construction sector to generate employment is huge, resulting in the increased demand for skilled and trained professionals.

3) Can you describe the current employment trends in the real estate industry? 

While accurate estimates for total employment in the real estate sector are not available, Construction Industry Development Council (CIDC) suggests that the construction industry engages approximately 33 million people, having grown from 14.6 million in 1995. However, only 20 per cent of this population is skilled as most professionals do not have any formal education in the field.

There is a huge shortage of trained and skilled resources across levels. As per CIDC figures, shortage of specialised workforce in the construction industry is approximately 33 per cent. Separate industry estimates indicate that shortage of senior level manpower is more acute at 60 per cent. Civil engineers and architects which form the backbone of the built environment are estimated to be in short supply by ~200 per cent and 50 per cent respectively.

In the recent past, shortage of skilled resources has been responsible for slowing down the construction activity by an average of six months to a year. As a result of this shortage, development firms have been compelled to import architects, designers and planners from countries such as Singapore, Thailand, Australia and New Zealand on handsome salaries thereby pushing up the project costs and impacting profitability.  

4) What kind of career opportunities are available in the real estate industry? 

While there are numerous avenues available within the entire gamut of land, real estate, construction and associated environment fields, the awareness levels of the kind of opportunities available are much lower in India, as compared to the developed economies.

Across the property lifecycle there are several choices available to pursue a career in real estate. The property lifecycle initiates with land surveying, where professionals can have a wide array of experience in geomatics, environment, rural land surveying. There are town and country planning institutes that help bring in trained town planners. At the moment there are about 7,000 vacancies in Government departments in town planning which reflects the immense potential. The built environment engages architects and designers, structural engineers, civil engineers, construction project and quality control managers, building and quantity surveyors.  

5) What are some of the challenges HR professionals face in the real estate industry? 

The most prevalent challenge human resource professionals continue to face in realty firms is the lack of quality talent which stems from the absence of specialised real estate education, bringing in fresh skilled manpower. Compared to the demand of personnel that the sector requires, existing educational institutions and professional bodies have not been able to scale up the delivery of qualified professionals.  

6) Do you think there is adequate education for a career in the real estate sector in India? 

Despite the enormous size and the potential of the real estate and construction sector in India, apart from civil engineering, town planning and architecture, the current education set-up in India does not adequately provide for specific curriculum requirements and specialised courses for the construction and real estate sector. Barring a few institutions, which cater to a very small percentage of the people employed in the sector, no professional training and certifications are available for the professionals in this sector. As a result, most people currently employed in the sector learn fundamentals of the business on the job and hence, the quality of professionals employed and the quality of work delivered, leaves a lot to be desired. This is not an ideal scenario for an industry looking to expand rapidly in the coming years. 

7) What are some of the traits and qualifications employers in the real estate sector look for in the people they hire? 

The basic qualifications that realty firms seek in their candidates include degrees/diplomas in civil engineering, architecture and design, construction management and finance. In relation to the non technical skills that realty firms look at in prospective employees, these are no different than in other service industries. Typically, people with a combination of strong deal-making and interpersonal skills with the ability of analysing, negotiating, researching and planning ahead are sought. Source Times Ascent