Realty sector In India / 18-20% job losses in 12 months

The country’s real estate sector saw 18-20% job losses over the last one year because of weakening sales and tight liquidity, according to Lalit Kumar Jain, chairman of Confederation of Real Estate Developers’ Association of India (CREDAI).

“Slower pace of approvals has broken the cycle of sales and cash flow, ultimately resulting in job losses. Even the annual 10-12% new recruitment has not taken place this year, effectively pushing job losses to 18-20%,” Jain said, adding that this estimate was based on his discussions with developers over the past few months.

Jain said among the segments worst affected were sales, administration and management, which together witnessed 7-8% of job losses.

“Real estate sector provides direct employment to nearly 7 crore people and around 7-8% of these jobs are for office staff, while majority is for labour and construction workers,” Jain said.

The sector has been grappling with liquidity issues along with weak sales for nearly two years now. While unaffordable prices continue to keep prospective homebuyers away from the market, developers have been citing higher costs and compressing margins for no major correction.

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via Realty sector saw 18-20% job losses in 12 months: Lalit Kumar Jain, Chairman, CREDAI – The Economic Times.