labour shortage hits real estate India.

The severe labor shortage is alarming the real estate builders. Most of the housing projects are not yet completed due to labor shortage. Recently there has been a tremendous increase in labor shortage.

Proposed home buyers of Greater Noida, Noida and Yamuna Expressway are yet to receive their dream home. Many housing projects are yet to be completed even after the due delivery time. Real estate builders put the blame on labor shortage.

Developers’ effort to find the required manpower from the NCR regions proved vain. Most of the real estate builders are now trying to find laborers from the other states of India.

Noida Extension Developers are most affected by this labor shortage. Though they recently gained the approval to retain their constructions they are not able to do it due to acute labor shortage. For almost a whole year constructions at Noida Extension remained banned.

The residential projects are moving in a very slow pace. Laborers failing to turn up in the work site slow down the construction works.  Pressure is built up on the real estate developers by the Greater Noida Authority. The Greater Noida Authority demands the developers to deliver the projects to the buyers on time either by introducing more laborers or by increasing the working hours.

Speaking on the issue, Mr. Vijay Trivedi, vice chairman of NEFOMA, the Noida Extension flat owners’ body, commented that the date is already delayed. The news of more delay is really embarrassing and depressing. He cautioned of the alarming necessity of bringing in proper strategy and planning to overcome this situation.

Builders of Noida Extension agreed to the fact that they had to hold the construction in all possible ways. They have to find one way or another to tackle the situation caused by the labor shortage.  Amit Gupta, Managing Director of Orris Group disclosed that the group had already contacted contractors of other regions for getting more manpower. They are demanding exorbitant rates for sending their workers, Mr. Gupta blamed.

Orris Group has some projects in Gurgaon and along the Yamuna Expressway. The group is ready to offer higher compensation and accommodation to the workers. With this purpose the group has sent delegates to other states to find labors, Gupta added.

A recent report has pointed to price hike and other social schemes like JNNURM and NREGA responsible for the labor crisis. JNNURM and NREGA are said to be successful yet they are blamed of causing severe scarcity of labors.  Scarcity of laborers or labor shortage causes delay of infrastructure growth as well.

These governmental social schemes have generated local jobs. This limited migration of the laborers. A contractor, Mr. Amit Anand said this labor shortage is going to hamper Delhi- NCR’s development –pace. Real estate industry admits that labor shortage affects them severely but they are of the opinion that it will also affect the other fields of growth.