Ummid Assistant

IDB scholarship forms available at Bhopal's Companion School

IGNOU's preparatory course for students desiring higher education

Welcome Guest! You are here: Home » Views & Analysis

Now, workforce a major bottleneck for realty development

Sunday August 05, 2012 12:43:10 PM, Vinod Behl, IANS

The Indian realty and construction sectors, which together contribute 17.5 percent to the country's gross domestic product (GDP) and growing at an enviable 35 percent per annum, now face a serious threat due to severe shortage of workforce.

Increasing urbanisation is generating unprecedented demand for real estate. Industry data show India needs to potentially build an average of 8.7 billion sq. ft. of real estate space every year, or whopping 95 billion by 2010-20. The annual requirement that stood at 7.3 billion sq. ft. in 2010 is projected to touch 10.15 billion by 2020.

As much as 85 percent of potential space requirement is in the housing sector, which faces a shortfall of 26 million units. India will have a cumulative demand of 2.3 million units in next five years, against supply of 1 million units.

This massive requirement for realty space results in huge demand for professionals to build and deliver. But there's an immense shortage of workforce at all levels - specialised professionals, including valuers, quantity surveyors, facility managers, core professionals, including engineers, architects and planners, non-core professionals, including lawyers and financial analysts, and workers including skilled and semi-skilled.

Considering the continuous shortfall in supply, coupled with increasing annual demand, the real estate and construction sector will be having a cumulative demand of nearly 45 million core professionals over the current decade (2010-20) with a cumulative demand-supply gap of 44 million core professionals.

We will be needing nearly four million civil engineers, 65,000 architects and 18,000 planners. Besides, the sector require about 35 million skilled and unskilled labourers but their availability is pegged at 25 million.

This severe shortage of workforce especially labour shortage has put a serious challenge to the timely completion of real estate projects. Industry statistics show that about 480,000 units could face delays during 2011-13 in top cities of Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai and Kolkata. Today over five dozen large residential projects accounting for over 40,000 units are delayed by over four years in National Capital Region.

This has serious implications for the real estate consumers in terms of extra financial burden, The shortage of labour and substantial increase in their salaries has considerably pushed up the cost of housing for the home buyers.

One major hurdle in tackling this serious problem of workforce shortage is the sheer lack of training. According to All India Council for Technical Eduction (AICTE), out of total workforce of about 440 million, only about 12.5 percent has received some kind of formal/non-formal vocational or education training. And compared to 12 million people entering the workforce every year, there is a capacity to train only 3.1 million workers. This has a lot to do with shortage of specialised courses and curriculum, besides professional faculty.

However, it is a welcome development that education qualification framework will come into force from 2012-13 academic session in polytechnics, engineering colleges and other colleges under the University system. It's equally heartening that the government is mulling a credit guarantee fund to create 26 crore skilled manpower by 2018. This fund will be used for extending loans for vocational programmes at a subsidised interest rate.

National Skill Development Corporation has also been actively engaged in ramping up its efforts to train workforce in the construction industry. But then the government effort alone will not be adequate to tackle this serious problem. The real estate and construction industry will have to make a substantial contribution in this regard to ensure that its high growth is sustained over the coming years.



(Vinod Behl is editor of Realty Plus, a real estate monthly. He can be reached at vbehl2008@gmail.com)

 



 








 


 

Home | Top of the Page

Comments

Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Comments powered by DISQUS

i

i

 

More Headlines

150,000 people have iftar at UAE mosque

Electronic nose helps locate deadly tumour

Antarctica was once a tropical paradise

Caste council in Rajasthan orders family's boycott, police file case

Man arrested in Rajasthan for selling off wife

Jammu gets first traffic light

Clue to why women live longer discovered

Girl student strip searched in Bengal, two teachers held

Secret to a happy marriage: Get angry

Saina gets India's maiden badminton bronze at Olympics

Left meets PM, demands excess food be distributed

Keshubhai Patel quits BJP, may float new party

Can't deny education to students on bonafide mistakes: Court

 

Top Stories

Saina gets India's maiden badminton bronze at Olympics

Shuttler Saina Nehwal gave India its maiden Olympic medal in badminton after China's Xin Wang retired hurt from the bronze medal play-off despite winning the first game at  »

Saina loses to Wang Yihan in semis

Saina first Indian shuttler to reach Olympic badminton semis

 

  Most Read

'Hijab banned as security measures for APJ Abdul Kalaam'

Narrative of a girl student who was discarded from volunteering during Kalam's visit to Hyderabad on July 30, 2012: As the teachers discarded me and my friend from volunteering  »

Keshubhai Patel quits BJP, may float new party

Announcing his decision at a press conference in Gandhinagar, Patel said everyone is unhappy with the way the BJP was functioning in Gujarat. "People are unhappy with the government of Narendra Modi  »

 

  News Pick

In China, Uighur Muslims are discouraged from fasting

In what is seen by some as a risky campaign to secularize the Muslim minority, China is discouraging Muslims in the far western region of Xinjiang from fasting during Ramadan, though the government says the move »

10 missing girl students found pushed into flesh trade

Ten of the 24 girl students of a government residential school in Bihar, who went missing five years ago, were pushed into flesh trade, police said Saturday. Shivdeep W. Lande, the Araria district superintendent of   »

Outages, blasts, Assam... no end to government's woes

As if low growth, high inflation and a poor monsoon were not enough trouble for the Manmohan Singh government, it faced further problems with an outbreak of ethnic and communal violence in Assam, massive power cuts on two successive days and a series of bomb blasts in Pune  »

For Afghan girl, running in Olympics is like wining gold

Tahmina Kohistani, the only Afghan female athlete at the London Olympics, might have finished last in the 100 metres race but she said competing in front of 80,000 spectators made her feel like a champion. "I forgot  »

 

Picture of the Day

Five organizations viz. Bhopal Gas Peedit Mahila Stationery Karmachari Sangh, Bhopal Gas Peedit Mahila Purush Sangharsh Morcha, Bhopal Gas Peedit Nirashrit Pension Bhogi Sangharsh Morcha, Bhopal Group for Information & Action and Children Against Dow Carbide jointly organised the “Bhopal Special Olympics” on July 26, 2012, a day ahead of the opening of London Olympics 2012.

 

 
 
 
 
 
 
 
 

RSS  |  Contact us

 

| Quick links

News

 

Subscribe to

Ummid Assistant

 

National

Science & Technology

RSS

Scholarships

About us

International

Health

Twitter

Government Schemes

Feedback

Regional

History

Facebook

Education

Register

Politics

Opinion

Newsletter

Contact us

Business

Career

Education

     

 

 

Ummid.com: Disclaimer | Terms of Use | Advertise with us | Link Exchange

Ummid.com is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2012 Awaz Multimedia & Publications. All rights reserved.