Real estate: Hiring surges, salaries rise amid battle for talent

While the compensation market has experienced a drastic jump upward, companies are not shying away from paying if talent meets the requirements.

Companies large and small are on a hiring spree in the real estate sector, seeking talent for a diverse array of roles. However, this surge in recruitment efforts has not been without its challenges.

The industry is grappling with the daunting task of meeting escalating compensation demands, especially for candidates with specialised skills, who command premium packages. As competition for the top talent intensifies, real estate firms are under increasing pressure to offer competitive salaries and attractive benefits, reshaping the landscape of talent acquisition in the sector.

In the past six months, the real estate sector has seen a 16 percent surge in hiring, with April 2024 alone witnessing 9 percent growth over March 2024, and registering 11 percent growth on a year-on-year (YoY) basis, according to data shared by job site foundit with Moneycontrol.

This increase in demand spans both the Residential and Commercial segments, including investments in Global Capability Centres (GCCs).

Job site Indeed’s data revealed that Delhi, Bengaluru and Mumbai have seen the maximum hiring in the construction sector. This could be driven by a strong business environment, uptick in warehousing and industrial needs, commercial housing requirements as migration rises, opening of manufacturing facilities, and more, according to Indeed.

However, smaller cities such as Ernakulam, Kochi, Lucknow, and Kozhikode are among the top regions capturing job seeker interest.

Hiring spree

Real estate company Central Park intends to significantly expand its project team and support functions, including sales, marketing, and CRM. The company plans to hire over 200 professionals this year and is placing a strong emphasis on hiring hospitality professionals.

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Approximately 20 percent of these hires will be fresh graduates from various disciplines, including engineering, business management, and hotel management.

Noida-based Womeki Group is looking to hire 500-600 employees as it expands over the next year across multiple positions.

Gaurav K Singh, Founder and Chairman of Womeki Group, said that the hiring strategies of real estate companies in India have undergone notable shifts, primarily driven by the industry's growth and the evolving market landscape. “One of the key changes has been a heightened emphasis on digital skills,” he said.

Similarly, Century Real Estate aims to hire around 120 personnel this year. The company said it is on the path of exponential growth and that it has been doubling its topline every two years.

Further, The Guardians will also be hiring 200 personnel this year. “These additions will predominantly occupy roles in sales and marketing, crucial for supporting our strategic expansion at our firm,” the company said in an emailed response.

Shortage of mid-level talent

A paradox is emerging in the sector today: while junior roles are being filled with ease, real estate companies are grappling with an acute shortage of mid and senior-level talent. This talent gap threatens to disrupt growth and innovation in an industry already navigating economic fluctuations and evolving market demands.

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For instance, Anurag Joneja, CHRO of Central Park, observed that while there is an abundant supply of junior-level resources, there is a significant need to regularly upskill these young professionals to align them with industry standards.

“The real estate industry's rapid growth has led to increased talent movement, and we anticipate a shortage of mid-level resources in the next 8–12 months. To address this, our strategy of recruiting 20 percent fresh graduates will help us navigate these challenging times,” he told Moneycontrol.

Foundit observed that while there is a pressing demand for professionals with expertise, adaptability, and innovation, the market suffers a scarcity in talent of this calibre.

According to Sekhar Garisa, CEO of foundit, high turnover rates persist due to the dynamic nature of roles, as well as factors such as project-based work and counter-offers from competitors.

“Additionally, industry trends are evolving rapidly, requiring professionals who can embrace technological advancements, sustainability practices, and shifting customer preferences,” he added.

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Satguru Builders plans to hire between 3 to 5 individuals for senior roles, including a Head Architect and a Head of Construction.

Although the firm comes across enough senior talent actively seeking positions, they often demand higher compensation packages.

“Those senior folks are asking for big salary jumps—like 30 to 40 percent, which might not always be justified. Companies must approach talent acquisition with a balanced perspective, considering both the present needs and future potential of candidates,” said Sharan Babani, Director of design, development, sales and acquisitions at Satguru Builders.

Companies paying more if necessary 

The average compensation for general roles in the Real Estate sector, such as Real Estate Agent, Property Manager, Marketing and Sales Executive, typically ranges from Rs 3 lakh per annum (LPA) to Rs 14 LPA, depending on experience, location, and the specific position, foundit data showed.

The average compensation for niche or specialised roles such as Sustainable Development Consultant, Property Valuation Specialist, Real Estate Investment Analyst, Regulatory Compliance Officer and Urban Planner tends to be higher due to the specialised skills and expertise required. These roles command an average salary ranging from Rs 7 LPA to Rs 21 LPA, depending on factors such as demand, scarcity of skills, and industry trends.

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While the compensation market has experienced a drastic jump upward, companies are not shying away from paying more if the talent meets their requirements.

“ Compensation demands have certainly increased over the past year due to the high demand for talent. However, here, we focus on the fundamental qualities of the people we hire. If their talent aligns with our long-term vision, we compensate them accordingly,” said Pavan Kumar, founder and CEO of White Lotus Group.

Others are following a buy and build strategy. For instance, Mahesh Prabhu, CEO and Executive Director of Century Real Estate and Holdings, said the company’s talent team is investing in developing a robust network by participating in exclusive real estate clubs, events, and exhibitions. The company is investing in campus placements, having recruited 12 individuals last year from various campuses, including the Indian Institute of Management (IIM), tier 1, and tier 2 institutions.

Additionally, Prabhu said the firm is committed to investing in training and drawing from a comparable talent pool within the hospitality industry, particularly in sales.