Delhi-Mumbai industrial corridor will help create five new cities: Knight Frank

Pune: The first phase of the Delhi-Mumbai Industrial Corridor (DMIC) will lead to the creation of five new cities along its various nodes and the urban centres that will benefit through the first phase are Noida, Greater Noida, Gurgaon, Manesar, Jaipur, Ahmedabad, Indore and Aurangabad.

These are amongst the key findings of a comprehensive study on the DMIC released by Knight Frank India.

The report, which is the first in a series of studies undertaken by the company, will serve as a ready reckoner for all stakeholders and as well as those who wish to get an idea of the possible impact of the DMIC on the districts of Ahmedabad, Vadodara and Surat.

Amongst the takeaways of the report is that close to two crore jobs (direct and indirect) will be created by the seven nodes in the first phase. Assuming there are four members per household, the new cities in the first phase will house a population of nearly four crore.

Built-up demand

Providing a snapshot on the impact on real estate by the first phase of the DMIC (figures estimated till 2040) the report says that the total residential built-up demand will be 800 crore sq ft, while the total built-up commercial demand will be 251,622,000 sq ft. The total number of hotel rooms will be 18,233.

In a statement, Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “A total of 24 nodes have been planned along the entire stretch of the DMIC. Once all the phases of the project are completed, job creation along the DMIC will be unprecedented. The resultant effects of this astronomical job creation will lead to immense real estate development across verticals in and around the project areas. As these new urban agglomerations take shape, they will also attract interest from other sectors of the economy. Increased job opportunities, coupled with a superior quality of life offered by these new cities, would provide boost to the migration of businesses and people to these cities.”

Restricted focus

Samantak Das, National Director & Chief Economist, Knight Frank India, added, “There is no denying the fact that the DMIC and other corridors will have a major impact on real estate. However, for the purpose of this study, we have restricted the focus to the impact of the DMIC along its influence area in its first phase. According to our study, there will be a rub-off effect of the implementation of DMIC initiatives on the smaller urban centres in proximity of the respective nodes and going forward, these are expected to grow at a faster rate than the present-day major urban centres.” Source: Business Line

Vigorous Hiring Activity Anticipated in Real Estate, Finance & Insurance: Manpower Employment Outlook

Manpower Group conducted the Manpower Employment Outlook Survey for the first quarter 2015 by interviewing a representative sample of 5,108 employers in India.

Participants were asked how they anticipate total employment outlook at their location to change in the three-month that ends in March, 2015 as compared to the current quarter.

These employers are highly optimistic and report dynamic hiring prospects during the period January-March. Out of all the employers interviewed, 44% of the employers foresee an increase in hiring levels whereas only 3% forecast a decrease and 34% predict no change; the figures result in Net Employment Outlook of +41%.

As per the report, ‘Once the data is adjusted to allow for seasonal variation, the Outlook stands at +45% for the second consecutive quarter. Year-over-year, hiring prospects improve by 12 percentage points.”

The striking Feature of the report is that job seekers can expect the strongest hiring pace in finance, insurance and real estate since 3Q 2012 in the period January-March, 2015, as per the employers who report a Net Employment Outlook at +48%. Compared to the previous quarter, hiring intentions improve by 3 percentage points; the same is 12 percentage points stronger year-over-year.

The survey covers seven sectors. The overall key features of the report are:

Organisation-Size Comparisons: Employers in both Large and Medium organizations-size categories forecast payroll gains during the period. With an outlook of +45%, large employers indicate bullish hiring intentions whereas with +37% Outlook medium employers predict robust gains.

Regional Comparisons: Hiring levels is expected to grow in all four regions of East, West, North and South. However South and West regions report the strongest hiring intentions where Net Employment Outlooks stand at +46% and +45%, respectively. North based employers are also bullish on hiring intentions with an Outlook of 42%, which is 31% for employers in the East.

Sector Comparisons: Workforce gain is expected by employers in all seven industry sectors during the period Jan-March. However the most strong gain is expected in the Wholesale & Retail Trade sector where employers report a Net Employment Outlook of +54%. Vigorous hiring activity is expected in the Finance, Insurance & Real Estate sector and the Services sector with an outlook of +48% and +47%, respectively. At third place is Transportation & Utilities sector with an Outlook of +45%.

Get the complete report at manpowergroup.com/press/meos_landing.cfm.

Real Estate Jobs for 3rd and 4th Sem and Fresh MBAs

If you are a 3^rd   or 4^th Sem MBA student or have already completed your MBA but are yet to get any confirmed job offer from recruiters then this news if for you.

Today most of the MBAs do not get suitable employment offer on campus. The other problem is that once they are out of the campus, they lose their demanding position to seek suitable jobs, whatever they have.

This problem occurs because it is an established fact that most of the graduates of MBA institutes today do not possess any employable skills. They need to be trained in different areas even though they have studied the same programs for two years.

Despite this huge availability of MBAs, real estate companies have been facing huge shortage of professionals at entry level. It is not that these companies do not get applications in response to their job recruitment advertisements. The problem lies in the scarcity of quality applicants. The applicants who respond to the job advertisements do not possess the skill sets required by real estate companies for different types of real estate jobs.

NIREM being an educational institute and closely associated with HR Managers in real estate sector understands this contradictory situation pretty well. There are several real estate developers, consultants and other recruiters who regularly recruit NIREM students.

Therefore considering the huge requirement of quality but fresh professionals, NIREM has started a customized program of one week duration on ‘Real Estate Marketing’ in association with these recruiters. On completion of the course, students will be placed in real estate organizations provided they meet the various requirements of recruiters and the institute.

During one week of class room training, candidates will be exposed to various subjects of real estate including legal aspects, sales & broking, market analysis, sales & negotiation skills etc. On completion of the program, HR managers will conduct interviews of the successful candidates and will recruit as per their requirement. Suitable and industry standard compensation will be offered.

Next batch will start in mid-January, 2014 and offers for real estate jobs will be given to successful candidates once the program completes. To know more, please call at 7827.88.4220, mail to info@nirem.org or visit www.nirem.org

India’s Organised Sector Expected to generate over 3 Lakh New Jobs

India’s organised sector is expected to generate over 3 lakh new jobs across sectors in the September quarter, a survey said on Wednesday. The country’s organised sector is set to create about 3,20,400 jobs between July and September 2010, according to the findings study on the employment trend by staffing services firm Ma Foi Randstad. “There is optimism in the economic scenario across all sectors and services sector has created most of the new jobs in the country,” it noted.

Around 650 companies across 13 industry segments were surveyed. According to the report, 4,18,564 new jobs were generated between January and June this year, with health care sector alone seeing over 121,000 jobs. Hospitality industry added 63,000 jobs during the same period. “The top five sectors leading the boom are health care, hospitality, real estate & construction, IT & ITeS and education, training & consulting,” it said.

When it comes to cities, Ma Foi noted that New Delhi, Mumbai and Chennai were the leading job generators. The three cities, together, saw the creation of 1,12,987 jobs for the period of January to September 2010. “Kolkata, Bangalore and Hyderabad follow closely creating 30,000 plus jobs during the same period,” the report added. Ma Foi Randstad’s Managing Director and CEO K Pandia Rajan said that there is increased optimism in hiring spread across all sectors.

“We see the service sectors like health care and hospitality spearheading the boom by adding significant number of jobs. “The buoyant economy has given a boost to real estate & construction sector, which has demonstrated the highest growth in employment figures,” he said. In the September quarter, real estate & construction segment is expected to see an average salary increase of four per cent. Pharmaceutical and health care industries are anticipated to witness an hike of 3.5 per cent and 3.4 per cent, respectively, during the same period. Among cities, Bangalore is projected to see an average salary jump of 4.9 per cent, followed by Delhi and Pune, with an increase of 3.5 per cent each.

Govt to Set up New norms for Realty Valuation

The urban development ministry, along with the Indian Bank Association (IBA), the National Housing Bank (NHB) and the corporate affairs ministry, has drafted a handbook on policy, standards and procedures for real estate valuation by banks and housing finance institutions. The exercise, the first ever, is to put some order in real estate valuation.

In parallel, the company affairs ministry has drafted a Valuation Professionals Bill. It seeks to create a Council of Valuation Professionals of India. It will have experts from professional institutions and regulate the business of valuation. The council will set standards for valuers, train them, set qualifying norms and monitor them.

The norms include educational qualifications, work experience, membership of professional bodies, registration with the government and references. An IBA official told Financial Chronicle that the draft bill was now in the consultation stage.

The Royal Institute of Chartered Surveyors (RICS) India managing director, Sachin Sandhir, who helped in drafting the bill, said, the valuation practice in this country was replete with instances of bad corporate governance, bad debts and fraud. “It is an accepted fact that property valuation methods in India are as varied as the property laws in different states. In the absence of any prescribed standards, guidelines or reporting formats, valuers could manipulate assumptions, calculations and approaches.

“In the past, the Securities & Exchange Board of India (Sebi) has said disclosures made by real estate developers prove there are no standards of valuation. In some cases, inflated valuations are based on assumptions about future property values. Internationally recognised and International Valuation Standards-compliant RICS standards could not have come at a better time,” he said. According to officials, the need for some regulation has arisen because of the fly-by-night operators in the real estate business who take customers as well as the tax authorities for a ride and whose valuation systems are, at best, opaque.

The new policy will also look at other features like term of the empanelment, compliance to standards and procedures, obligations and other aspects. Importantly, an annual performance review by senior officials of banks will be undertaken. According to the draft, if the performance of the valuer is unsatisfactory, he or she can be taken off the panel. Use of unfair practices, professional misconduct, violation of the code of ethics and professional practice, will also invite similar action.

A valuer will be expected to address all conflicts and help arrive at an amicable solution; supportive documents are to be provided before the valuation work begins. According to the draft, banks will raise objections, if any, within 15 days of the submission of rectification and resubmission. Two valuers will be appointed if the property value exceeds Rs 10 crore and the maximum acceptable difference between the two evaluations should not exceed 15 per cent.

RICS, headquartered in London, has also offered support to develop skills and capacity of valuers. Ashish Jindal, northern region director of Knight Frank, said property valuation in India was done by diverse groups of people with varying backgrounds and skills. “Property valuation is considered just a part of the disciplines of engineering and architecture, so a degree in these subjects is sufficient to become a property valuer. But valuation needs knowledge of other disciplines, such as law, economics, accountancy, town planning and environmental science. Moreover, a valuer must keep abreast of changing legislation, emerging economic trends and constantly shifting market forces. This breadth of knowledge and experience is extremely rare, given the lack of relevant educational courses available to meet these needs,’’ he said.

India Career Journal: Who’s Hiring?

JUNE 17, 2010, 1:29 PM IST

By Shefali Anand

Jobs are back, thanks to an uptick in the Indian economy over the last few months.

European Pressphoto Agency

After a tough 2008 and 2009, hotels, resorts and other tourism-related services are hiring again.

But who is hiring, and what are they looking for?

Here, we list five industries that are crying out for new employees. But be warned: hiring this time around is not like the boom times of 2006 and 2007. Back then, companies were hiring indiscriminately, taking on tons of fresh-out-of-school graduates and ready to invest time and money to train them. This time, companies increasingly want more experienced people, preferably ready to hit the ground running as soon as they start their jobs. Also, companies are spreading their recruitment throughout the year instead of concentrating the hiring process at the beginning of the financial year.

Nearly one million new jobs could be created in the organized sector this year, estimates human resource services firm Ma Foi Randstad. A lot of them will be in the following industries:

1. Healthcare

The expansion of hospitals, primary healthcare centers and diagnostic centers in India, has created a hunger for staff in these businesses.

According to Ma Foi Randstad Employment Trends Surve released on Thursday, the healthcare industry will create 160,000 jobs within the three months ended June.

Within this industry, among the most in-demand professionals are nurses, who are in short supply both in India as well as abroad. K. Pandia Rajan, chief executive of Ma Foi (India & Sri Lanka), says that some nurses who get hired outside India earn more than a software engineer from a second-tier engineering school in India.

There’s also a lot of demand for people in “allied health services” such as laboratory technicians, x-ray technicians and staff at physiotherapy units. Neighboring Southeast Asian countries and the Middle East are also seeking this talent as they build their medical tourism capabilities, says Kamal Karanth, managing director of Kelly Services India, a human resource services firm.

2. Banking and Financial Services

Banks and financial companies have always been major creators of jobs and the momentum has once again increased in recent months.

Both public sector and foreign banks are now expanding rapidly across India and are in need of more talent to sell their products and build their brands. They are primarily looking for relationship managers, and front-end managers, to build the services part of their businesses.

Similarly, insurance and money management companies are expanding rapidly, to tap India’s growing wealth. Top sales and marketing people at these companies find it easy to switch to other industries, and they have been, leaving many a job empty.

3. Information Technology and IT-Enabled Services

As the global economy came out of the worst of the recession, India’s information technology companies have seen an increase in demand for their products and services. As a direct result, in recent months they have stepped up their hiring.

At the same time, after the recent lull in the job market, there has been a lot of attrition in this industry lately, as people look for better-paying jobs in rival companies.

Kelly Services’ Mr. Karanth expects that Infosys, Wipro and their ilk could easily absorb 100,000 professionals before the end of this calendar year. He says the most demand is for entry-level programmers as well as for the next level of staff, such as team managers and so on.

The related IT-Enabled Services industry, which basically refers to outsourcing firms, is also hiring, typically freshers and mid-level managers.

4. Hospitality

This was one of the fastest-growing sectors before the recent economic downturn, but was hurt sharply in 2008 and 2009. Now, once again, there is growing momentum in the construction and operation of new hotels, resorts and other tourism-related services.

Market experts expect increased investment in this sector, which should, in turn, further result in new jobs.

While the industry is looking for a wide variety of talent – from chefs to service-keeping staff – the need of the hour is to hire people to run hotels or resorts successfully. In other words, they want people in services or operations management.

5. Real Estate and Construction

Over the last few months, there has been a sharp increase in the construction of homes and housing prices, and big real estate companies have listed major expansion plans.

While this intuitively would give rise to more jobs, human resource consultants are divided on how large this number could be. Also, a large number of people who work in this industry – particularly real estate brokers and salespeople – are not affiliated to companies, and are thus hard to account for.

There is demand for sales and marketing personnel for major real estate projects, but some niche related fields of work are also experiencing a boom. These include architects, designers and technical surveyors, says Mr. Rajan of Ma Foi.

Source: Wall Street Journal Blog