The High-Rise Dilemma: India's Real Estate Boom Faces a Critical Hurdle

As the demand for housing continues to surge, developers in India's real estate market find themselves in a challenging position. On one hand, the opportunities for growth are immense, with towering skyscrapers promising luxury and convenience across major cities. On the other, a shortage of skilled contractors has become a significant roadblock, posing risks even to the most meticulously planned projects.

Tejasvi Kapoor, Managing Director of Hunt Property Infratech Pvt Ltd, recognizes the magnitude of this issue. “The real estate sector is experiencing phenomenal growth, but the contractor shortage poses a challenge we must address urgently. It's a critical aspect of sustaining this boom,” Kapoor explains. His firm, known for its innovation and strong partnerships, is at the forefront of efforts to tackle this challenge.

Unprecedented Growth, Unseen Challenges

India’s urban landscape is expanding rapidly. According to Anarock Research, the number of housing units launched in the country’s top seven cities has surged from an average of 60,000 per quarter pre-pandemic to a staggering 1.25 lakh units in recent years. While this growth is promising, it has also intensified the need for skilled contractors capable of executing large-scale, high-quality projects.

Tejasvi Kapoor points out, “This scale of expansion is something India hasn’t seen before, and it requires a skilled workforce that can adapt to modern construction demands.” His experience in the real estate sector spans over 18 years, making him a key voice in addressing these challenges.

Navigating Through Challenges

The shortage of contractors has created significant difficulties for developers, particularly as construction technology evolves. Kapoor stresses that while new techniques and technology can accelerate project timelines, they also require a workforce skilled in these innovations. “Without qualified contractors, even the best technology can’t help us meet our goals,” he adds.

Pradeep Mishra, CMD of Oram Developments, echoes this sentiment, noting that the combination of limited skilled labor and the growth of government infrastructure projects is straining resources. Kapoor, however, remains optimistic. He believes that with the right strategies, developers can continue to meet market demands.

Innovative Solutions for a Growing Problem

To address the contractor shortage, developers are adopting a range of strategies. Tejasvi Kapoor highlights several innovative approaches being used across the industry:

1. In-House Construction Teams: Kapoor’s firm, Hunt Property Infratech Pvt Ltd, has bolstered its in-house construction team to maintain control over quality and project execution. “Investing in in-house capabilities has allowed us to ensure timely project delivery without over-reliance on external contractors,” Kapoor shares. This approach, though costly, helps maintain high standards.
2. International Partnerships: Tejasvi Kapoor sees great potential in international collaborations. For instance, TARC Ltd. has appointed the Arabian Construction Company for luxury projects in Delhi and Gurgaon. Kapoor notes, “These partnerships bring world-class expertise, but also raise costs. It’s a balance that developers must carefully navigate.”
3. Adopting Construction Technology: Kapoor is also a strong advocate for the use of cutting-edge construction technologies. “At Hunt Property Infratech, we’ve embraced tech solutions like project management platforms to optimize efficiency,” he says. Startups such as Mytek Innovations offer advanced tools that help bridge the gap between contractor availability and project demands.
4. Skill Development Initiatives: Kapoor understands that long-term success hinges on upskilling the workforce. “At Hunt Property, we’re investing in training programs to build a future-ready workforce,” he explains. The Confederation of Real Estate Developers Associations of India (CREDAI) has been pushing for similar industry-wide initiatives, which Kapoor fully supports.

Implications for the Real Estate Market

The shortage of skilled contractors is reshaping the dynamics of India’s real estate sector. Kapoor outlines some of the broader impacts:

• Project Delays and Cost Overruns: With fewer skilled contractors, delays and cost overruns have become more common, affecting the bottom line of developers and homebuyers alike. Kapoor emphasizes, “Timely completion is key to maintaining buyer trust.”
• Quality Concerns: Developers like Kapoor are doubling down on quality control measures to ensure projects meet the highest standards. “We cannot compromise on safety and durability, especially as we scale,” Kapoor states.
• Affordable Housing Impact: Tejasvi Kapoor also acknowledges that the affordable housing sector faces additional pressure. “As costs rise, developers may hesitate to invest in affordable housing projects. It’s a sector that needs immediate attention,” he warns.

Building a Stronger Future

For Tejasvi Kapoor, the solution to these challenges lies in collaboration between developers, contractors, and government agencies. “We need collective action to resolve the contractor shortage,” Kapoor insists. He advocates for large-scale skill development programs, regulatory reforms, and widespread adoption of advanced construction technologies.

His vision for Hunt Property Infratech Pvt Ltd includes embracing joint ventures and collaborative models to pool resources and expertise. “We’re already exploring partnerships that will help us navigate these challenging times,” Kapoor shares. By fostering collaboration and innovation, Kapoor believes the real estate industry can overcome its current hurdles.

Laying a Strong Foundation

Tejasvi Kapoor is confident that India’s real estate boom presents a huge opportunity, not just for developers but for the nation. “The skyscrapers rising across our cities symbolize India’s ambition. We need to ensure that this growth stands on a solid foundation,” he says.

Through a combination of skill development, technological innovation, and regulatory reform, Kapoor is optimistic that the contractor shortage can be overcome. “At Hunt Property, we’re committed to setting new benchmarks for quality and efficiency. The challenges we face today will shape the future of India’s real estate sector for generations,” Kapoor concludes.

Marketed by Hunt Property Infratech Pvt Ltd

Tejasvi Kapoor, the Managing Director of Hunt Property Infratech Pvt Ltd, is a driving force in the real estate industry, with over 18 years of experience and credentials from LSE, Dubai Real Estate Institute, and Google. His leadership continues to guide Hunt Property in delivering top-tier real estate services across India.