News & Views on Indian Real Estate

Tuesday, May 20, 2008

Coming of realty mutual funds aggravates talent shortage

The addition of new real estate investment products and property funds that developers are lining up are expected to exacerbate the talent crunch in real estate. Though regulatory clarifications are still awaited, fund houses are already on the hunt for key personnel, who have the caliber to look after investments in real estate. People who have worked with property consultants and investment banking firms are being mostly preferred over the other lot. With talent in short supply, speed is of essence. Poaching from competitors is rampant. At any given point in time, good people have 2 to 3 offers in hand. There is a premium on readymade talent. Not surprisingly, salaries are flying. On an average a professional gets 25-35% increment annually. Were they to change jobs, the increment rises to 40%-50%. For companies, the cost implications multiply if there is a delay in projects. That makes these companies more than willing to meet the rising expectations of candidates. Educational institutes have been quick on the uptake, launching specialized courses. According to a Ma Foi Employment Survey, real estate is likely to add about 47,000 professionals in the organized segment this year. How will the demand be catered to? Overseas talent is one answer. Salaries in India have become comparable to those in the US, and the subprime-triggered slump there is helping draw talent. Another approach could be hiring advisory services instead of hiring and developing in house talent. What’s your take on this???

Anonymous said...

I want to ask that Is the Realy mutual Fund's be good for the investment purpose or not ?

Anonymous said...

I really like your blog it’s excellent…

Plz share more about India real estate growth in this ression