Unemployment in Jaipur’s real estate sector
In Rajasthan, the shock of demonetisation and GST, along with the lingering effects of the enactment of Real Estate Regulatory Authority (RERA) Act and the ban on illegal sand mining, have all contributed to a slowdown in the real estate sector, traditionally one of the bigger employment providers.
RERA is meant to regulate the real estate market and protect homeowners from dubious dealers. While the industry has welcomed regulation, teething troubles with RERA have exasperated the larger slowdown. Apart from the unorganised sector, which has taken a hit across the country, the working class associated with the sector is also bearing the brunt of these upheavals.
Investors have stopped putting money in real estate since 2017 as they do not see any returns. Banks have reduced funding for builders by over 50 percent due to unsold inventories and less cash flow. The recession in the real estate sector is causing acute rural distress because most of the labour was engaged in construction and are now out of work.
“There is a huge crisis in real estate in Rajasthan. The industry was mostly cash-based. Now with demonetisation and GST, builders cannot take cash from buyers, so less construction is happening. Nearly 80 percent of new civil engineers are looking for government jobs or have shifted to other fields in the last three years. Their salaries are also not as per expectations.” Said a city-based civil engineer.