Realty PLAYERS HIT AGAIN LANE RENTAL

Some of the country's largest real estate developers DLF, Unitech and HDIL has begun to hire again, as they look to launch new projects and to accelerate implementation of existing cash in a pickup in domestic demand, reports Sanjeev Choudhary from New Delhi. "We are launching new projects and plans to hire in large numbers," said a spokesman for DLF, India's largest real estate company fired more than 300 persons during the downturn. Unitech, which has 1,200 people on the rolls, has added 300 employees at various levels in the past few months. Its project sites where construction was halted due to lack of funds last year, is once again buzzing with activity, a company spokesman said.

Real Estate Cos Start Renting Mid Signs of Revival

Some of the country's largest real estate developers DLF, Unitech and HDIL has begun to hire again, as they look to launch new projects and to accelerate implementation of existing cash in a pickup in domestic demand.

"We are launching new projects and plans to hire in large numbers," said a spokesman for DLF, India's largest real estate company that fired more than 300 people during the downturn.

He said the company hired people with specific skills such as mall management even during the crisis. DLF Tuesday launched a project in Delhi and sold the entire stock of 1,250 apartments in two hours, he said.

The companies expect high demand in the coming fiscal quarters with the economy showing clear signs of a recovery in the financial year beginning April 2009. The year ending March 2009 recorded 6.7% growth after two bad quarters, dragged down the annual growth of 9% plus levels seen in the previous three years.

Unitech, India's second largest property company that struggled for months to avoid bankruptcy, is back in action with two rounds of share sale and initiate a new business model. The company, which has 1,200 people on the rolls, has added 300 employees at various levels in the past few months. Its project sites where construction was halted due to lack of funds last year, is once again buzzing with activity, a company spokesman said. 

Unitech had raised 900 million U.S. dollars through two rounds of game sales to qualified institutional buyers to reduce its debt level, which hovered around Rs 10,000 crore last year. The company has also changed its business model and launched back in the 'affordable' category and recruit more people to sell directly to customers.

An upturn in demand has led several companies such as Omaxe, Lodha, Ansal and Gera developers launching new projects, while others like Parsvnath Developers and Prestige group is still playing it safe.

Rohtas Goel, chairman of Delhi-based Omaxe, said he employed about 70 people, almost the same number it had fired last year.

"Much of the rental will be at the center and in sales and project management. It's the categories where maximum jobs were lost," says Vivek Gandhi, Senior Vice President of Delhi-based Ansal Properties and Infrastructure (API) which has plans to recruit at least 200 people in three months. He expects salaries to remain at a level slightly lower than the top of the boom in 2007.

The years between 2004 and 2007 was Indian property market is booming with hundreds of new projects being launched, and property prices go up several folds. Boom and the ensuing battle for talent as wages in the sector shot up.

But a property crisis, which started as a result of extremely high property prices and high interest rates early last year, deepened due to the impact of global recession. This so businesses shelving several projects resulting in mass job losses in several properties businesses.

"We offered an average 10% salary hike to our staff. The new people also joins us at a level equivalent to our old people," said Abhisheck Lodha, director of Lodha group, which has hired 80 people since August. The company, which has a 1300-strong workforce, has plans to add 350 more in a year.

Another leading Mumbai-based developer HDIL is also hiring. "We need additional manpower, we are speeding up the implementation of existing projects and plans to launch more," said Sarang Wadhawan, managing director of the company.

However, a few other players such as Delhi-based Parsvnath Developers and Bangalore-based Prestige Moving cautiously. "We do not fire people in the first place and therefore no immediate need to hire new people," said Prestige group director Uzma Irfan.