Real estate developers across major cities are continuing to grapple with labour shortages, with a section of migrant workers from West Bengal yet to return to project sites even after the conclusion of State elections. Industry players say the shortage is beginning to weigh on construction timelines, execution costs and project planning, particularly in southern markets such as Bengaluru and Chennai that are heavily dependent on migrant labour from the eastern States.

Aditya Chellaram, Executive Director, Featherlite Developers, said the company has seen labour strength at one of its sites fall by nearly 30 per cent, with close to 100 workers leaving during the election period. “We are still short of around 75 people at one of our locations, and most of them were carpenters from West Bengal. It is a critical workforce segment for us,” he told businessline. While some workers are expected to return this week, Chellaram said the company is working towards finding alternative labour to compensate towards the shortage.

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He added that there is growing optimism among workers around employment opportunities closer to home, not just in West Bengal, but also in States such as Jharkhand, Chhattisgarh and Uttar Pradesh, where infrastructure and development activity is picking up. “Labour is increasingly evaluating whether they need to travel south for work if opportunities are emerging closer to their hometowns,” he said.

The issue appears to be extend beyond Bengaluru. Ranjeeth Rathod, Managing Director, DRA Homes, indicated that the industry is witnessing labour shortages across markets as migrant workers from Bengal have not fully returned after the elections.

In Chennai, developers say the labour issue is coinciding with supply-side disruptions. Mehul H Doshi, President, CREDAI Chennai, said the city’s real estate sector currently faces a dual challenge of labour shortage and supply disruptions in key construction materials such as tiles. According to him, the combined impact could delay project execution timelines by three to six months.

Developers are also preparing for a possible increase in labour costs. Ramji Subramaniam, Managing Director, Sowparnika Projects, said labour expenses are expected to rise as developers compete for a limited workforce pool.

Ajaz Ahmed, COO, Concorde, said the company witnessed a noticeable drop in labour availability across several projects during the run-up to the elections, with the peak shortfall touching nearly 30 per cent. “Projects are still operating below required labour strength and have not yet returned to optimal manpower levels. We expect workers to begin returning after May 15, though it usually takes at least a month for labour availability to normalise after such disruptions,” he said. Ahmed added that Concorde has even paid for flight tickets to bring workers back faster and retain its workforce.

The real estate industry has long depended on migrant labour from the eastern States, with West Bengal being one of the key contributors. However, developers say labour shortages have become more frequent in recent years, especially after festive seasons. Earlier, rising living costs and disruptions such as the LPG crisis had already delayed workers’ return to cities.

Speaking to businessline earlier, Santhosh Kumar, Vice Chairman, Anarock Group, said that before the pandemic, nearly 85–90% of workers returned to cities within a month after festivals. “That number has now fallen to around 60–70%, and the lag is much longer,” he said, adding that rising urban living costs and improving rural employment opportunities are gradually reshaping labour migration patterns.

Published on May 7, 2026