European property professionals have been severely hit by the crisis but many of them are still confident in the market and anticipate an increase in economic activity in the next months, according to the RICS and Macdonald’s & Company European Remuneration Property Survey, launched at Mipim on Wednesday.
European property professionals have been severely hit by the crisis but many of them are still confident in the market and anticipate an increase in economic activity in the next months, according to the RICS and Macdonald’s & Company European Remuneration Property Survey, launched at Mipim on Wednesday.
In this year's survey, 11% of respondents interviewed lost their job in the last 12 months, over 14% experienced some form of salary reduction (up from 2% last year) and a large number expects reductions in 2010. Furthermore, employment benefits and annual bonuses have also been cut to save costs during the unprecedented real estate and economic downturn. Only 24% of real estate professionals reported a base salary increase, against 61% in 2008 and 2009.
The survey highlights that those professionals with a RICS qualification on average earned over 23% more than those without this professional status (with an average salary of EUR 80,000 against EUR 65,500). RICS members working in the Benelux region in particular were the best rewarded, followed by those working in France. Despite the difficult economic situation, market sentiment improved with regards to last year’s survey, especially in Scandinavia and the UK. Most respondents look at the future of the real estate market with clear optimism and are confident that Europe will be at the forefront of any sustained global recovery.
Rob Cottrell, Senior Associate - Europe Macdonald & Company Property Limited says: 'This last year has been a very challenging one for those in the property industry, and no particular discipline nor sector has been unaffected by the economic difficulties that we have seen in Continental Europe. This year’s statistics reflect the negative status of the real estate market due to some significantly pessimistic indicators. Despite the economic climate, however, it is clear that the job market has not come to a halt. There are signs of improvement in the European economy (45% of respondents expecting an increase in economic activity in the next 12 months), but confidence and availability of capital continue to severely affect the real estate market in all areas and sectors.'
