Hyderabad: April 30, 2007
Indian realty sector to add 6000 architecture & engineering professionals by 2008: EMA Partners
Riding on the IT, ITES, Retail and financial services boom coupled with growing opportunities in infrastructure and hospitality sector, the Indian realty market is expected to witness a massive demand of architects and civil engineers. The fiscal 2007-2008 is expected to add over 1000 architects and 5000 civil engineers across major metros and mini metros according to a study by EMA Partners, a global executive search firm,
"Overall economic growth with surge in demand will witness at least 15-20% rise in the pay packages for architect, design and civil engineers in India. The recent trends have indicated that this demand for realty sector professionals will reach a new high in the years to come", said K. Sudarshan- Managing Partner, EMA Partners India.
"The market for architects & civil engineers is expected to grow by more than 30 percent by the end of 2007 as compared to an estimated 20 percent in 2006". added Sudarshan
According to EMA Partners, the growth triggers are
1. Economic policies have driven the planning of numerous SEZs and mixed-use developments over large tracts of land.
2. Planned makeover of New Delhi for common wealth games 2010
3. The infrastructure boom has brought about design opportunities in the form of new generation metro rail stations, privatization airports and public utilities.4. Booming IT and ITES sectors with companies with comparatively small presence in India like Boeing & EADS are setting up facilities and Accenture, Intel, Microsoft, Cisco and Wipro are among the companies expanding facilities.
5. Planned makeover of Mumbai as an International Financial center
6. Emerging boom in the hospitality sector with a slew of new properties across different segments from existing and new players like Hilton planned across metro and non metro locations
7. Emergence of organized retail sector with new investments planned by the RPG Group, Future Group and entry of new players like Aditya Birla Group, Reliance, Bharti - Walmart etc is seeing the construction of a large number of malls in all the metros and tier 2 cities.
8. Higher disposable incomes have resulted in a real estate boom in the residential sector, with large complexes of lifestyle homes being constructed, and more on the anvil.
Commenting on EMA Partner's study, Sanjay Srinivasan, Director- Edifice Architects, India's leading premier architecture and interior design firm said "Edifice plans to add 300 professionals to cope with the growing demand from our clients to create world-class premier commercial spaces. We have already seen global architecture firms now making way to India. In the next two years, we expect significant consolidation in the sector"
The Indian economy registered 8.4 percent growth in 2006 and is projected to improve to the 9-10 percentage range in 2007. In the year 2006, India was amongst four largest FDI recipients in south, east and southeast region. Realty FDI inflow saw a whooping 400% rise from US$ 135.35 million in Jan-Oct, 05 to US$ 703.3 million in Jan-Oct' 06. The major foreign investors for year 2006 were Dubai based Emaar Group, Morgan Stanley real estate, Alpha G Corp; US based Siachen Capital and UK's Liberty International.
Developers like Parsvanath, Sobha, Omaxe / DLF etc approaching the capital markets for funding their projects and Indian capital market developers eyeing Alternate Investment Market- a submarket of London Stock Exchange has propelled the entire sector.
More than 5.75 million sqft of total office space was added in last quarter of 2006 across Mumbai, Delhi, Chennai & Bangalore. The rising costs and local capacity constraints are driving companies to Tier 2 cities such as Chennai, Hyderabad and Pune and Tier 3 cities such as Jaipur, Chandigarh, Mysore and Ahmedabad. India's high growth rate has led to problems with inadequate public infrastructure, salary inflation and high attrition rates in major tier 1 cities. This increases the attractiveness of Tier 2 and Tie 3 cities where quality of life, lower wages and other costs are increasingly attractive.
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