Skills shortage in Indian real estate
The deficiency of skilled personnel in India’s real estate sector is responsible for slowing down construction activity by an average of six months to a year, that’s why project cost increases. In India Development activity is at all time high and is only expected to increase further in future, According to the rate of urbanization and expansion of satellite cities, It is expected that over 600 million people will be buying home in Indian cities by 2030. Due to shifting of people in urban areas, quality of real estate and extensive supporting infrastructure services are improving in urban areas.
Despite this vast demand the real estate sector and it being the second largest employees in the country; the sector is still featured by lack of regulation and transparency and by significant fragmentation. Level for real estate practices is scarce, so approaches and processes are diverse. As result of this, the sector faces so many challenges like financial and liquidity constraints, loopholes in contract procurement and processing mechanisms, cost overruns, antiquated laws and policies, lack of enforcement and implementation of reforms.
Skills Deficit
These features have affected the potential of the sector to keep up with the improving quality and the difficulty of real estate and infrastructure, which progresses quickly. The starting of impression building is proportional to increased professionalism. There is urgent need to learn new methods for doing business. The sector in India lacks talent due to the absence of specialized education of real estate. In RICS research report real estate and construction Professionals in India by 2020 make a demand-supply gap of 44 million core professionals in the sector by 2020.
Out of approximately 50 million people employed in real estate, construction and infrastructure, only 2 million employees are professionally qualified, while others are unskilled employees.
The demand of educated professionals in real estate such as architects, engineers and planners greatly passes the supply. The progressive demand for such professionals was 4.38 million with a supply of only 569,000, indicating the shortage of 87% of professionals.
Till 2015, this demand-supply gap will reduce slightly to 85 percent, with the demand pegged at 4.73 million and the supply accounting for 725,000 professionals.
Need for Clarity
Due to the shortage of professional resources, construction activity is slowing down by an average of six months to a year and increasing project costs. The world wide investors are careful about their investments in Indian market. This is the reason why clarity is important in real estate sector. Transparency is an important feature for attracting out of India investors. The failure in bringing transparency is responsible for lack development in real estate sector.
It is largely accepted that awareness and introduction of worldwide recognized and domestically best practices are responsible for quality assurance and good reputation of sector.
Source: The MBA Universe
deficiency of skilled personnel, Indian market, Infrastructure, Investors, Professional resources, Realty News, RICS, satellite cities, unskilled employees, Urban city, worldwide investors
