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.
“The sector is currently hiring for front-office, back-office and operational roles. The levels are comparable to the first wave of aggressive hiring witnessed in the late nineties. We have seen over 1,500 cumulative openings being tendered in the first quarter of 2008,” said Monisha Advani, managing director, Randstad Holdings India (former Emmay HR), a hiring consultancy.
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.
Milind Barve, managing director of HDFC Mutual Fund, says his firm has already hired 5 to 6 people in the past 6 months for realty funds.
“Two of these would come from within the group i.e. Housing Development and Finance Corporation, while another one has a finance background,” Barve said.
A fourth has been inducted to look after the tax issues on the deal structuring side, while the fifth one will take care of legal issues linked to due diligence of a property before investing in it. Rival Birla Sun Life is on the lookout too.
“Not aggressively, but we are seeking people who have worked with property consultants and investment banking firms,” said an official who did not wish to be named.
With talent in short supply, speed is of essence.
Property consultant Knight Frank has seen two seniors ?- one from India and another from Australia ?- move to UK-based firm Rutley EuropeanProperty’s Indian asset management operations.
Manish Charatkar, head of human resources for western location at Jones Lang LaSalle Meghraj, says recruiting takes a long time, though people are found in the end.
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,” says a consultant.
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,” says E Balaji, chief executive officer of Ma Foi Management Consultants.
Educational institutes have been quick on the uptake, launching specialised courses.
Narsee Monjee, the Mumbai-based B-school, has a 2-year programme on real estate management, while Welingkar Institute offers a diploma in real estate.
“Property developer Akruti Nirman has its own college. Others have subjects in specific areas of real estate starting since second year of graduation if not a full-fledged curriculum,” Jones Lang LaSalle Charatkar said.
According to a Ma Foi Employment Survey, real estate is likely to add about 47,000 professionals in the organised segment this year.
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