India sees job-growth slowdown in the real estate sector: Report

While job searches for real estate profiles grew by eight per cent after the implementation of the RERA in May 2017, job postings in the sector declined by eight per cent during the same period, according to a report by Indeed

According to data from job site Indeed, the real estate sector in India has seen a drop in the number of job postings, by eight per cent from May 2017 to May 2018, in the wake of the implementation of the Real Estate (Regulation and Development) Act (RERA) 2016. The RERA rollout promised to make the real estate sector more regulated and transparent, thus, building confidence among job seekers to explore work opportunities in the field. However, while the number of job searches in the sector has increased by eight per cent in the last year, job postings have seen a dip of eight per cent. This slowdown in job creation, is indicative of the sector taking time to recover from the Act implemented by the government.

 

Time periodPercentage change in number of job searches (per million)Percentage change in number of job postings (per million)
May 2016 to May 201724%3%
May 2017 to May 20188%-8%
May 2016 to May 201834%-6%

 

See also: New housing launches increase by 50 per cent in Q2 2018

Post the implementation of the RERA, job seekers with experience in civil engineering, electrical engineering, marketing and sales, mechanical engineering, project management, architecture, management and administration, accounting, communications and legal profiles, have shown significant interest in working in the real estate sector. As the promulgation of the RERA has given developers and customers greater clarity as to their future prospects, it has also opened doors for job seekers, who are looking for successful long-term stints in the real estate sector.

 

Top cities for jobs in real estate in India

RankCity
1Noida
2Mumbai
3Bengaluru
4Pune
5Gurugram
6Kolkata
7New Delhi
8Chennai
9Hyderabad

 

The data further indicates that Noida is the leading city in India, for those seeking job opportunities in the real estate sector, followed by Mumbai and Bengaluru. The cities that make it to the list of top regions for jobs in the sector are, incidentally, cities that are also seeing burgeoning job growth in other sectors, such as technology and related fields of work. In fact, the influx of job seekers towards other sectors, has likely provided a positive impetus to the real estate development of these regions, thus, triggering consequent growth in the sector.

Commenting on the data, Sashi Kumar, managing director, Indeed India, said, “Implementing the RERA is one of the most important regulatory moves by the government of India, with regard to the real estate sector. Once thought to be largely unorganised, the real estate sector has now become more transparent, better organised and far more accountable, after the introduction of RERA. While the sector is still recovering from the aftermath of RERA, the Act’s stipulated compliances and regulations are expected to unlock potential job opportunities in various capacities. These measures have been taken by the government, to restore people’s confidence in the realty sector. The industry as a whole has also taken to these measures in a positive manner and is collectively working to reinvent the sector towards encouraging job creation, in order to contribute to the Indian growth story.”

Indeed’s data also highlights a high level of interest in jobs in the real estate sector among the 36-45-year-old age group of job seekers. While millennial job seekers show the least interest in the sector, real estate job opportunities are actively looked for, by job seekers in the senior age bracket, i.e., in the 51-65-year-old age group.

As per the Global Real Estate Transparency Index for 2018 by JLL, India has improved its ranking by one notch to the 35th position, driven by policy reforms and the liberalisation of FDI regulations. This ranking is further expected to improve by 2020, on the back of government-led policies and regulations such as the RERA, GST and Benami Transactions Act. These initiatives help in elevating the country, in terms of transparency scores across all cities and hold the potential to increase job creation in the sector.

 

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