The real estate sector in India is experiencing a period of rapid growth, driven by urbanization, economic development, and rising disposable incomes. This growth has led to a surge in demand for skilled professionals across various roles, from construction management and architecture to real estate brokerage and property development. However, the sector faces challenges in terms of talent availability, particularly in specialized areas and for manual labor. In addition to the challenges and opportunities men- tioned above, the real estate sector is also grappling with the impact of the COVID-19 pandemic. The pandemic has disrupted supply chains, affected consumer sentiment, and led to economic uncertainty.
To ensure a sustainable and prosperous future, the real estate sector must continue to adapt to changing market conditions and invest in innovation. By prioritizing upskilling, promoting diversity and inclusion, and fostering a positive work environment, the sector can attract and retain top talent, drive growth, and contribute to the overall development of the Indian economy.”
According to Nikita Garg, Partner, Hunt Partners, “The Real Estate Sector Skills Council (RESSC) has reported a 30% increase in enrolment in real estate-related courses at various educational institutions in 2024, indicating a growing interest among students in pursuing careers in this field. To make the real estate sector more attractive to top talent from IITs, IIMs, and B-schools, it is essential to focus on branding and reputation management. The sector needs to improve its image and highlight the exciting career opportunities it offers. Additionally, competitive compensation and benefits are crucial for attracting and retaining top talent. Finally, providing opportunities for mentorship and career development can help to create a supportive and nurturing environment for young professionals.
Furthermore, the real estate sector can benefit from increased diversity and inclusion. By creating a more welcoming and inclusive environment, the sector can attract and retain a wider range of talent, leading to better decision-making and innovation. There is a growing need for specialized educational institutes focused on the real estate sector. These institutes can offer tailored curricula to meet the specific needs of the industry, facilitate industry-academia collaborations, and promote research and innovation. By investing in education and training, the real estate sector can build a skilled workforce and ensure its long-term sustainability.”
KEY TRENDS SHAPING TALENT RECRUITMENT
Phalguni Rathod, Founder, See & Recruit, observes, “The first half of 2024-25 has seen a remarkable 50% growth in demand for talent from their clients. Key skills in high demand include CEOs, Construction Leadership, Project P&L Management, Sales & Marketing, and Business Development.”
Girisha Keswani, Senior Director – RE, added, “We are seeing a notable increase in demand for talent across alternative asset classes, including co-living, warehousing, and data centers. As these sectors expand rapidly, developers are keen to bring in specialized professionals to manage and scale these emerging business verticals.”
Girisha Keswani shares the following key trends identified by the firm that are shaping talent recruitment in the real estate sector:
Leadership Talent in Demand: Capital Markets Driving Recruitment - As developers prepare for IPOs, many are hiring professional CEOs for the first time, entrusting them with significant authority. These CEOs are now responsible for leading major strategic negotiations with lenders, landowners, and other high- stakes matters. Equally noteworthy is the increasing demand for CFOs with IPO and listing experience. There is also a rising trend of hiring professionals from fund management backgrounds, as developers look to create developer-led fund platforms—an initiative inspired by the success of existing models in the industry.
Technology Investments: The Rise of RE Tech - The real estate technology (RE Tech) sector is evolving at a rapid pace. AI, machine learning, and blockchain-powered SaaS solutions are being adopted to revolutionize everything from project management to marketing and CRM processes. This digital transformation has created a significant demand for professionals who can integrate these cutting-edge tools with legacy systems, while also developing long-term digital strategies for the organization. Companies are looking for talent capable of designing and implementing enterprise-wide digital solutions that will stand the test of time.
Talent Acquisition from IIMs and Consulting Firms
Developers are increasingly focusing on young, high-potential talent, particularly those from India’s top business schools and consulting firms. Many have established positions within the Founders' office, tasking these recruits with crucial projects like sales strategy, annual business planning, and operational efficiency. After spending 2-3 years working directly with the founders, these professionals often tran- sition into senior leadership roles, overseeing key departments.
The Labor Shortage: An Ongoing Concern- Despite the advancements in technology, labor shortages remain a critical issue in construction. Senior industry professionals report that labor availability is down by as much as 20%. This shortage is driven by several factors: (a) the rise of alternative job opportunities in the infrastructure sector, often closer to laborers' hometowns, (b) significant skill gaps, and (c) the outflow of talent to international markets.
Skilling: Bridging the Talent Gap - As India’s second-largest employer, the Real Estate and Construction sectors employ over 70 million people. Yet, the gap between supply and demand persists. While the government has placed a strong emphasis on skilling at the blue-collar level, many educational institutions, both global and Indian, are now offering specialized courses designed to develop white-collar and mid-management talent for the sector.
ADDRESSING SKILLED LABOR GAPS
A 2024 report by the National Skill Development Corporation (NSDC) highlights that India will require an additional 8 million skilled workers in the construction sector by 2024, emphasizing the pressing need for effective upskilling programs.
Talking about labor challenges in real estate Nikita Garg stated, “One of the most significant challenges facing the real estate sector is the shortage of skilled labor. While there is a growing demand for professionals with expertise in areas such as project management, urban planning, and sustainable development, the supply of talent remains inadequate. This is partly due to a lack of formal education and training programs in these fields. Additionally, the sector faces competition from other industries offering higher salaries and better working conditions.
The manual labor segment in real estate is particularly vulnerable to challenges. These include seasonal fluctuations in demand, lack of job security, and limited access to social security benefits. Many manual labors operate in the informal sector, making them more susceptible to exploitation and poor working conditions. Moreover, the sector relies heavily on migrant workers, which can pose challenges in terms of accommodation, language barriers, and cultural integration.
To address the shortage of skilled labor and improve the working conditions of manual laborers, the real estate sector must prioritize upskilling initiatives. This can be achieved through a combination of industry-academia partnerships, on-the-job training, and government support. By collaborating with educational institutions, the sector can develop relevant curricula and training programs to meet the specific needs of the industry. Additionally, providing opportunities for employees to learn new skills and advance their careers within the organization can help to retain talent and improve productivity.
Additionally, by reducing the burden of manual tasks, automation can improve work-life balance for women in the sector. A 2024 industry report from the World Economic Forum indicates that diversity initiatives have led to an increase in female representation in the construction industry, with women now accounting for approximately 20% of the workforce, a significant increase from previous years.”
INTEGRATING APPRENTICESHIPS IN REAL ESTATE
Despite employing around 71 million workers as of 2023, real estate industry faces a profound shortage of skilled labor, with a staggering 81 percent of its workforce ill-equipped to meet the sophisticated de- mands of luxury developments and drive productivity. Dhriti Prasanna Mahanta, Vice President, Team- Lease Degree Apprenticeship shared her views, “To meet the construction standards required for premium developments, real estate projects must ensure access to highly skilled labor proficient in advanced construction techniques, precision craftsmanship, and cutting-edge technologies like smart home integration. The skills in demand include modern architectural design, energy-efficient building solutions, and high- end interior finishes among others and to bridge this skills gap, work-integrated learning programs, which offer hands-on experience through apprenticeships and technical training, enabling the workforce to gain the specialized skills required to meet the evolving standards of luxury real estate.”
Sourcing Skilled Labor- As the real estate sector expands, its transformative potential is stifled by a workforce that lacks the essential skills to navigate its future. The industry's informal and disorganized structure, coupled with limited company investments in training, has led to a critical shortage of skilled labor. With a workforce of 71 million, only 4.4 million workers possess core skills, while 6.9 million have vocational training, leaving a substantial portion ill-equipped to meet the sophisticated demands of high-end real estate projects. This glaring skill gap underscores the need to upskill and reskill over half of the workforce, a challenge exacerbated by the industry's reliance on informal training methods and ad hoc employment practices.
Construction Apprenticeships - Construction apprenticeships emerge as a transformative solution to this challenge, offering a structured approach to skill development. These programs blend practical experience with formal education, systematically refining workers' competencies in areas such as precision craftsmanship, sustainable building practices, and advanced construction techniques. By adopting apprenticeship programs, real estate developers can address the immediate skill shortages, formalize their workforce, and enhance productivity, ensuring they are better prepared to meet the escalating demands of high-end developments.”
Integrating degree-embedded apprenticeships and work-integrated learning programs offers a powerful combination of formal education and hands-on training, making apprenticeships a linchpin in addressing the sector's labor challenges.
At present, more than 45,000 apprentices have been trained in the construction sector, gaining practical experience in trades like carpentry, plumbing, and electrical work while pursuing degrees in civil engineering or construction management. This dual approach equips workers with essential technical skills and recognized qualifications, significantly enhancing their employability and career prospects. To ensure the success and scalability of these initiatives, collaboration between government, industry, and academic institutions is essential. These partnerships will help create a structured framework for workforce development, meeting the sophisticated demands of luxury real estate while fostering innovation and excellence in high-end construction projects.
Creating Sustainable Talent Pipeline - Appren- ticeships can help build a skilled workforce specifically trained by ensuring that workers are thoroughly trained in both traditional craftsmanship and modern construction techniques, which are essential for luxury projects. These programs ensure that workers gain hands-on experience and technical proficiency, aligning their skills with industry requirements for precision craftsmanship, sustainable building practices, and innovative construction technologies.
THE WAY FORWARD
“Government initiatives can also play a crucial role in supporting upskilling efforts. This includes providing financial incentives for training programs, improving access to vocational education, and creating a conducive environment for skill development. Technological advancements in the real estate sector,
such as Building Information Modeling (BIM) and automation, have the potential to enhance women's participation. These technologies can create new job opportunities for women in areas that require technical skills and knowledge of digital tools,” expressed Nikita Garg.
“By creating a sustainable talent pipeline, apprenticeships reduce the dependency on unskilled or inadequately trained labor, which often leads to errors, rework, and delays. Apprenticeships also foster a culture of continuous learning and development, ensuring that workers are up to date with evolving construction methods and industry standards. This structured approach to workforce development helps to ensure that projects are completed on time and meet the high expectations of quality and excellence, which are essential for large-scale, high-end real estate developments. Additionally, apprenticeships help mitigate labor shortages, ensuring a steady supply of qualified workers throughout the project lifecycle,” said Dhriti Prasanna Mahanta.
Concluding on an optimistic note Phalguni Rathod shared, “The buoyant capital market has ignited an unprecedented demand for leadership talent in real estate. This uptick in demand for experienced executives, project managers, and specialized professionals in areas like sustainability, technology integration, and asset management is set to reshape the talent landscape in real estate.”
The informal talks with business leaders make it amply clear that human resource management is no longer a support function but a core process for the business leaders and fostering a culture of innovation is essential for real estate firms to remain competitive.
Apprenticeships are emerging as a pivotal solution for closing the skills gap in real estate, ensuring a sustainable pipeline of skilled workers trained in advanced construction techniques.
To address the shortage of skilled labor and improve the working conditions of manual laborers, the real estate sector must prioritize upskilling initiatives.
The most encouraging trend is the growing recognition of senior HR professionals. Empowered with mandates to focus on employee welfare, growth, and culture- building, they are being entrusted with shaping the human capital strategy in ways not seen before.
According to the NASSCOM report, the real estate sector is projected to create 1 crore jobs by 2030, especially in areas such as construction, project management, and real estate services.
