IN: Increasing wealth feeding bubble?

yoganmahew · March 10, 2008, 9:21am

news.bbc.co.uk/1/hi/business/7282983.stm
India’s wages surge but risks multiply

A dearth of talent is one of the main reasons why salaries have gone through the roof in India.

And it is jobs in the real estate sector that are bringing home the biggest bucks, according to a recent survey on salaries in India by Hewitt.

It said that on average wages in India’s real estate sector have jumped some 25% - beating the average rise in salaries across the country and industries, which came in at 15%.

The main reason salaries in the real estate sector have taken off is because of the boom in India’s property market.

Property prices have soared in India - some 40% in the last year - as newly rich Indians look for a home for their families or some real estate to buy as an investment.

As a result, young professionals like Viral Desai have reaped the benefits of this boom.

The 28-year-old property consultant has seen his salary double - despite the fact that before this job he had never worked in real estate.

Previously he was a manager in a call centre - but was hired because of his enthusiasm for the property sector, and his attention to detail.

“Make hay while the sun shines I say! I’ve seen salaries jump more than 50% in the real estate sector,” Viral says.

“Now more people can buy houses thanks to these higher salaries, buy a car - all of this was not possible some time back - so as a result of everyone making more money, the standard of living has also increased.”