Reasons & Potential Solutions To The Labour Crisis In Indian Real Estate

Labour Crisis In Indian Real Estate : What is the severity of the labour shortage in Indian real estate, and what are the underlying issues that must be addresse in order to fix the problem? We investigate

Agriculture remains his primary employment. He claims that he only works on building sites in Noida when there is no agricultural employment available at home.


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Then there’s Dwarkadheesh, another Orissa mason worker. Builders in Noida pay him Rs 300 every day, but he is require to send money home. He wants to work in Mumbai, where contractors will pay him Rs 550 per day. His conundrum is that he would wind up paying more money merely to reside in Mumbai.

These two cases highlight a unique issue confronting the real estate industry: a labour shortage, which Indian developers have done nothing to alleviate. All of the labour welfare and training programmes have been a waste of time. Even the CSR (corporate social responsibility) budget has been mostly devoted to attracting and maintaining workers.


Some of the main issues that Indian real estate must overcome in order to attract sufficient labour are as follows:

  • Is labour scarcity a consistent issue throughout marketplaces, or is there a city-wide lack of professionalism?
  • Why do particular markets/cities appear to be more prone to labour shortages and a lack of trained labour force?
  • What should industry as a whole do to avert a labour shortage?


Labour Crisis In Indian Real Estate: Covid-19 reverse migration exacerbates labour shortages

The reverse migration during the first wave of the Covid-19 outbreak, post-lockdown, was not address in a way that allow workers to return to work. Because project delays are increasingly unavoidable, the labour scarcity is causing a crisis of trust among house purchasers. While it may harm house purchasers’ feelings, it will also harm developers’ bottom lines and profit margins. Vaccination and labour welfare, which should have been an inherent component of CSR, have not progressed beyond initiatives to generate media attention on the side of developers.

While developers acknowledge that the industry is facing a labour crisis, they do not have a specific answer on the table.


“Larger cities like Delhi, Gurugram, Mumbai, and so on rely on migrant labour,”   Because there were little or no job possibilities, the majority of the migrant labour left following the second wave of Covid. While things are improving, it is still not running at full capacity. Laborers’ memories of the unexpected shutdown and mobility issues are still fresh. Furthermore, better chances and/or comparable salaries in their hometowns have contributed to their troubles.”


Labour Crisis In Indian Real Estate: Laborers are discourage by the salary structure.

Currently, labour is employe on a contractual basis through contractors and subcontractors. As a result, there is no permanent labour force. Quality and skill sets differ depending on the contractor. Migrant labour is subject to the whims and fancies of these contractors. This technique drastically reduces their compensation

Developers have been alleging labour constraints on construction sites and operating with less than half the workforce in many cases. Labor issues have plague cities like as Mumbai and Delhi-NCR, which are seen to be more costly to live in than Noida, which has a catchment region where labour may dwell. Laborers are more readily accessible in smaller cities than in metropolises.


Labour Crisis In Indian Real Estate: Skill growth continues to be incredibly sluggish.

There is a need to solve the labour shortage in India because 70% of Indian office workers are under increased work pressure. In India, there is a labour shortage in many industries, not just real estate. This is due to a variety of issues such as a shortage of housing, social security, and other necessities.

“A serious challenge for the Indian labour market is the growing number of unskilled labourers.” Without enough vocational institutes. The country’s labour force’s skill growth is exceedingly sluggish. Many persons with technical skills are unable to find work in the secondary sector, contributing to India’s massive problem of educated unemployment. Add to this the lingering effects of the epidemic, which left all industries with few or no job opportunities, and the sudden shutdown and mobility concerns remain a source of anxiety. While economic changes are being conducted, the country is gradually implementing critical labour reforms.”


What can be done about the real estate labour shortage?

The government has promised steps to aid migrant workers’ return, including as the mobility of ration cards under the One Nation One Ration Card (ONORC) scheme. Which pledges to ensure that they obtain PDS supplies in their metropolitan areas (ration cards are tied to designated fair price shops).              

To minimise labour shortages that cause housing projects to be delay, developers should consider giving upskilling opportunities. Another strategy to encourage migrant labour is to provide higher perks. Making sure they have a place to stay near the job site or taking care of their children’s educational requirements might go a long way toward building an emotional connection with the workers and keeping them from leaving.

Industry organisations may also look forward to forming a cooperation with the government to solve this issue. For its own advantage, the sector should consider upskilling the labour force and offering incentives such as attendance allowance. Employment insurance, health coverage, travel costs, higher minimum pay, and production incentives.

Some recent government measures, such as the four codes for labour regulations. Which include decreasing working hours and PF, as well as employees’ in-hand income, are likely to be enacted shortly. The government plans to condense 44 basic labour regulations into four major labour codes with the new law: the wage code; industrial relations; occupational safety, health, and working conditions (OSH); and social security.              






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Disclaimer: The views of this expressed above are for informational purposes only based on the industry reports & related news stories. does not guarantee the accuracy of this article, completeness, or reliability of the information & shall not be held responsible for any action taken based on the published information.
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