The government has introduced a new labour law, which is expected to have a significant impact on the real estate sector. The law, which comes into effect from June 1, 2026, will require all developers and channel partners to register their workers with the labour department.
According to a report by People Matters, the law will also require developers to provide minimum wages and benefits to their workers, which is expected to increase costs. The law is expected to impact the real estate sector, particularly the unorganized segment, which employs a large number of migrant workers.
Developers such as Oberoi Realty and Piramal Realty have welcomed the move, saying it will bring transparency and accountability to the sector. However, smaller developers and channel partners have expressed concerns, saying it will increase their costs and reduce their profit margins.
The average cost of hiring a worker in the real estate sector is around ₹3-4 lakh per annum, which is expected to rise to ₹5-6 lakh per annum after the implementation of the new law.
