India's struggling real estate and infrastructure industries are hungry for fresh talent. And guess who is cashing in on this?
India's very own B-schools and, of course, the Confederation of Real Estate Developers' Associations of India (Credai), which represents private real estate developers in the country.
Not only are top business schools such as the IIMs and ISB offering specialised courses in real estate and infra management, but the institutes are also working on research papers that can actually help the bleeding realty and infra companies.
A report in the Economic Times today pointed out that in 2012, ISB along with MIT Sloan, started a research institute on real estate and infrastructure. The institute also runs a Real Estate Club formed along with infrastructure company SRE.
And there are several takers for such courses. For example, infra management was only introduced this year at IIM-Bangalore but it already has 75 students taking the class. Looking at the number of students opting for such courses even Credai has joined the bandwagon and plans to open institutes in Delhi, Hyderabad, Kolkata, Indore and Ahmedabad to offer post-graduate courses to real estate professionals.
In April this year, even the Royal Institution of Chartered Surveyors (RICS) announced a tie-up with Amity University to open a school for specialised degree courses in real estate, construction and infrastructure. The institute would start the first batch from July with 135 students. It will offer a range of academic degree programmes including BBA/MBA in Real Estate and Urban Infrastructure and MBA in construction project management. The fees for BBA is Rs 1.5 lakh per annum and Rs 2.5 lakh annually for MBA.
Real Estate, which is the most unorganised sector, has only 2 million professionally qualified personnel in India, even though the sector employs over 50 million people. A nationwide study by RICS indicates a likely demand supply gap of 44 million core professionals comprising of civil engineers, architects and planners by the year 2020. Naturally, the sector requires qualified experts at a time when it is suffering from mounting debt, labour and fund shortage and a global slowdown.
According to the ET report, IIM-B is currently working on a research paper to help Century Real Estate bring down its costs. In January, this Bangalore-based realtor failed to pay the interest rate on its bond issue placed with investors by Kotak Mahindra Prime, a non-banking finance company.
Such courses and engagement with realtors also act as an incentive for industry players to participate in summer internships and final placements at IIMs.
" Every year, Reliance Infra, Brigade Group, Supertech, Lodha Group and Puravankara Projects hire students across management institutes and salaries start from Rs 18 lakh on an average. Puravankara has three IIM-B graduates who are undergoing a year's training to take over as business heads in the company," the ET report said.