Thu Sep 12 00:45:17 UTC 2024: ## Construction Boom Fuels Labor Shortage, Driving Incentives in Real Estate
**Mumbai:** The Indian real estate and construction sector is facing a severe manpower crunch, with a shortage of up to 25% reported by the Confederation of Real Estate Developers’ Associations of India (Credai). This comes amidst a boom in the industry, driven by rising sales and property prices across metro and tier-II cities.
To retain workers during the festive season, companies are offering incentives like bonuses for completing tasks ahead of schedule and staying on site, as well as additional shifts and target-based rewards.
The shortage affects all levels, from blue-collar workers to engineers and architects. Companies are struggling to find skilled workers like carpenters, bar benders, and plumbers, and are even resorting to hosting job fairs in villages to attract talent.
Several factors are contributing to this manpower crisis:
* **Better compensation:** Workers are finding more lucrative opportunities in sectors like quick commerce and logistics, offering higher salaries and potentially less demanding work.
* **Skill gaps:** The demand for specific skills, like working with aluminum and steel, is outpacing the supply, pushing workers to seek jobs in other countries like Israel and the Middle East.
* **Working conditions:** Concerns about weather and safety, coupled with poor living conditions at construction sites, also deter workers from joining the real estate sector.
Industry leaders like Godrej Properties, Hiranandani Group, and Larsen & Toubro (L&T) have acknowledged the shortage and are implementing various strategies to address it. However, the lack of skilled labor could hinder the continued growth of the real estate and construction industry if not addressed effectively.
First Piper 