Real estate offers a financially rewarding career

This article was written for EG’s Starting Out in Real Estate guide, click here to view the digital edition >> “A little more than they think I’m worth and a little less than I think I’m worth,” is how US playwright Betty Smith artfully described the “usual salary”. So what can you expect from the “usual salary” in the real estate sector? A quick glance at salary progression for professionals as they gain experience and responsibility in the sector is encouraging. Data from real estate recruitment specialist Macdonald & Company shows the median annual salary for a graduate or assistant-level employee in real estate is £30,000 plus a potential bonus of 21% of salary. This progresses steadily, reaching £61,600 plus a potential 35% bonus for an associate or manager; £100,000 plus 67% for a director; and £159,000 plus 103% for a managing director (see table below for detail). Looking at salaries across all stages of career progression right across the sector, the median currently sits at £59,926, up by 4% on last year, according to Macdonald’s figures. This was a more sustainable increase than the previous few years when real estate – like many professional industries – experienced hyper salary inflation. Macdonald recorded a median base increase of 25% across total salaries for the sector during 2020-2022. But despite a cooling in demand, competition for real estate professionals remains high – ensuring total compensation keeps climbing. Some 70% of the 7,572 UK respondents to Macdonald’s 2023 salary survey said they had seen a pay increase in the past 12 months, up by 26% on last year. Almost a quarter of those said this resulted from a counter-offer – an indication of how sought after those with key real estate skills are. “You can’t describe the market as anything other than competitive,” said Simon Crabb, UK managing director at Macdonald. How does it compare to other professional sectors? Tom McNally, managing director of Madison Lincoln, a real estate executive search firm, points out that real estate is more focused on bonus and incentive plans than, say, law and accountancy. However, if you are weighing up the relative attractions of these professions, it may be helpful to consider how closely salaries across them are aligned. According to job site Indeed, the average salary for an accountant, solicitor and surveyor in London is £44,760, £59,321 and £45,191 respectively. These figures offer a helpful snapshot but it is important to point out they inevitably mask a huge swathe of variation across job types and employers – as well as career stages. “Real estate has not done a good enough job over the years of demonstrating the variety of careers available,” said Macdonald director Nicholas Carman. “If asked about a career in real estate or property, many people would envisage a career in estate agency or as a surveyor because these are the professionals we most commonly meet. However, there is a whole universe of opportunities associated with the design, planning, development, leasing or sale of commercial premises – not to mention the world that treats our homes or offices as tradable assets.” McNally said there is also a common misconception that individuals need to move from advisory to client side to improve their financial package. “If an individual can grow a successful career in advisory, they can match or outperform financially some of their peers who are working client side,” he said. The variety of opportunities in the industry means the earning potential of these careers and the entry requirements are broad. “As you might expect, the highest earners are most commonly associated with investment banks and international investors in real estate, trading ownership in buildings like other investors do stocks and shares,” Carman said. Indeed, Macdonald’s data shows an enticing median salary of £109,143 plus bonus of £28,000 for real estate jobs in investment banking. This compares with £48,618 plus a £10,000 bonus for a job in a consultancy/advisory business (see table below). Early career salaries (meaning less than two years’ experience and covering graduate, assistant and apprentice jobs) also vary, of course. In facilities management, you could expect £30,000 at this stage with the potential to rise to £85,000 as a director, the Macdonald survey shows. A job working in the investment arm of an asset manager might offer an early career salary of £31,500 with the potential to reach £110,000 at the top. A job in corporate real estate might well be lower for those with less than two years’ experience, on an average of £23,000, but still offers the potential for a six-figure salary, with directors earning an average of just over £100,000. Leasing buildings has an average early career salary of £31,750, rising to £87,500 at director level. As you start your research into what a career in real estate might offer, these figures are only one part of a bigger picture that includes training, benefits and the opportunity to work alongside talented professionals. But they do offer an insight into how much employers in the industry believe you are worth. To send feedback, e-mail julia.cahill@eg.co.uk or tweet @EGJuliaC or @EGPropertyNews View the digital edition of Starting Out in Real Estate >> Photo © Maureen McLean/Shutterstock