Nepal’s housing sector is facing shortage of workforce amid rising outflow of workers to overseas destinations and booming construction works in India -- a major source of workers to Nepal.

Housing and realty entrepreneurs said the shortage of manpower has hampered construction works — mainly big housing projects that require hundreds of workers.


“A significant number of workers have been retained by India itself to cater to the rising demands of manpower in booming construction and realty sectors there. And, increasing departures of Nepali youths to overseas job markets is also the major cause leading to declining supplies of housing workers,” said Ichchha Bahadur Wagle, vice president of Nepal Housing and Realty Development Association.

“Lack of sufficient workers has much delayed the construction of some of the housing projects in the capital,” Wagle added.

Kolkata and Orissa are the major source of workers for Nepal’s housing developers. Indians are taking up jobs of finishing works – plumbing, painting, parqueting, furnishing and decorations where as Nepalis are involved in initial construction works of the buildings. Around 20-30 percent of total workers required in housing sector are hired from India.

Housing entrepreneurs said the supply of manpower would have worsened had realty business not slowed down following the restriction by the Nepal Rastra Bank in lending in this sector.

“We would have also faced severe shortage of manpower in our projects had we not preplanned the required number of manpower," said another housing entrepreneur.

Min Man Shrestha, general secretary of the association, also said housing sector is passing though a shortage of skilled manpower.

“Unstable political situation in the country has encouraged the outflow of both skilled and unskilled manpower from the country in search of greener pasture, sparking the shortage of workforce in housing sector,” said Shrestha.

On an average, 1000 workers are required in a housing project. Entrepreneurs said they are experiencing shortage of workers by 20-30 percent of the requirement depending on the nature of work in the projects.

Despite global financial crisis that affected most of the countries all over the world, Nepal remained almost insulated and saw booming housing sector till a few months ago when NRB directed banks and financial institutions to limit their investment in this overheated sector fearing a credit crisis.

Keeping in view with the shortage of required manpower for this sector, the association is preparing to develop human resources on its own.

courtesy: myrepublica.com