Realty firms on hiring spree again

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Mumbai: Improved market conditions and better end-buyer sentiments are finally ensuring a hiring spree for top builders across metros. Real estate players have started hiring across-the-board, from top-level executives, including, CEOs and COOs to middle-level executives in execution and sales departments.

However, pay packages have not reached the peak levels of 2008 yet. Industry experts say the blood bath that the real estate industry witnessed during the slowdown has made employers more cautious and salaries are likely to remain 30-35% lower than what those offered at the peak of growth last year. LS Vaidyanathan, executive director, Nitesh Estates, says, “Pay packages at present are about 85% of the 2008 peak level. It dropped by about 35% during Q3 and Q4 of FY 09 due to the slowdown.

However, compared to that period, salaries have increased. We are hiring people with a hike of 25%, against the third and fourth quarter in the last fiscal. We have recently hired Ashwini Kumar as COO at Nitesh Estates,” he adds.

The Lodha Group has hired 30 to 40 people every month for the past seven months in sales and marketing, the people coming from firms like IBM and McKinsey. “Since Lodha is a technologically advanced company, we believe in hiring people to handle challenges. As for pay packages, we are at par with the best in the industry and hike pay packages by almost 25% to 30% based on performances,” said Abhisheck Lodha, director, Lodha Group.

The real estate revival story in India is being driven by the residential segment, with real estate consultants saying the investors, not just developers, are driving the current demand. Real estate players have also started ramping up their projects and hence, are looking out for capable candidates to handle these operations. While Bangalore-based Nitesh Estates is planning to increase its work force from about 115 employees four months ago to 180 employees in the next two quarters, Ackruti City, which has witnessed an increase in the sale of affordable apartments, is contemplating plans to hire an additional 10% in the next two quarters across departments like engineering, sales and architecture.

According to Hemant Shah, chairman, Ackruti City, “The hiring will take place mainly from the real estate sector. We had seen 15% of our entire workforce leaving our organisation during Q3 and Q4 of the financial year 2008-09.”