What’s the best way to get a pay rise in surveying?

That’s an increase of 4% compared to 2024, with two-thirds of respondents saying they have had a pay increase in the past year as a global skills shortage continues to create a competitive talent market.

The multifamily or build to rent sector is the highest paying sector by average base salary globally, and those employed by energy, utilities or power companies have the highest bonus entitlement as a percentage of salary, at 67%.

“This year's report highlights changing shifts in compensation and employee expectations,” says Peter Moore MRICS, CEO of Macdonald and Company. “We've seen a clear demonstration of employers responding to current economic realities; one in five professionals globally (20.5%) received a salary increase specifically as a cost of living or inflation adjustment, a rise from 16% last year.”

There’s good news for those thinking of gaining a professional qualification in the UK, where it leads to a bigger pay rise than getting promoted or even finding a new job.

However, skills shortages continue to prove troublesome for employers, with 73% stating that ‘attracting candidates that have the necessary skills’ is one of their primary recruiting challenges.

The median (the middle value in a range of numbers) salary around the world varies greatly, from $31,765 in South Africa to $196,050 in the Middle East. Germany, UK, Singapore and Hong Kong all sit in the middle with median salaries between $80,000 to $90,000.

In the UK, annual pay rises stood at 4.3%, just slightly above the global average of 4%, while in APAC the average pay rise was 8%.

Despite the more quantifiable nature of salary as a measuring tool, the report states: “Work-life balance continues to outrank salary level as the most important factor in a role. Three-quarters of employees in real estate are offered some level of flexibility in the location and/or hours they can work.”

The most common reason by far for a pay rise was, unsurprisingly, an annual salary review – this was the reason given by 52% of those whose pay increased. But, while it was the most common reason for a pay rise, it was far from being the most profitable.

“Real estate professionals, especially assistants and consultants, saw the highest pay increases after earning a professional qualification,” says the report. “Changing jobs offers a slightly higher pay rise than a promotion, with those accepting counteroffers after resigning earning on average £12,600 more than their original salary.”

Moore adds: “It’s not entirely surprising to see that achieving a professional qualification can lead to a greater salary increase for those up to consultant level. Qualifications represent a tangible investment in expertise and capability, which employers value highly.”

The best paying asset class in terms of base salary globally is ‘Residential: multifamily/build to rent (BTR)’. However, in the UK it is ‘data centres’, in the US it is ‘hospitality/leisure’ and in the Middle East it is the ‘mixed use’ asset class where employees earn more on average.

The report also found that data centres have the highest level of employee optimism compared to other asset classes, followed by other commercial real estate assets, including the life sciences, industrial and logistics sectors.

The data above shows that the type of real estate company offering the biggest bonus (as a percentage of salary) globally is ‘energy/utilities/power’, where some employees are receiving a bonus payment that is up to 67% of their base salary.

However, in the UK this has been the subject of critical media coverage, where underperforming water companies have paid out large bonuses over the past decade to senior executives. This has led to the UK government introducing a ban on “unfair bonuses” being awarded.

This may have contributed to what the Macdonald and Company report calls a ‘salary gap’ for UK employees who are entitled to bonuses. It says: “The data shows a 41% gap in bonus payout from 2024-2025 when calculating the average bonus received in the last 12 months and the maximum bonus entitlement.”

Critical thinking and problem solving are the most beneficial soft skills for employees to have, especially in the US where 76% of employers are prioritising it.

“The desire for critical thinking and problem-solving skills from hiring managers signals a need for adaptable, forward-thinking teams to shape the industry in the years ahead,” says Moore.

Skills of all kinds are in high demand, as proven by UK government’s plans for £600m of investment to train to 60,000 skilled construction workers. The creation of a new Construction Skills Mission Board will aim to “develop and deliver a construction skills action plan”, partly by funding new technical excellence colleges and helping existing colleges provide more construction courses.

The table above shows that the skills shortage is a problem facing the industry all over the world. Nearly three-quarters of respondents to the Macdonald and Company survey identified it as one of their top challenges when hiring. Despite these challenges, the report also found that 57% of leaders and hiring managers in real estate are likely to increase headcount this year, creating a competitive talent market.

Moore says one way to improve the pipeline of talent coming into the industry would be to address a lack of specialist skills. “On one hand, we’re seeing rising demand in alternative asset classes, in logistics and data centres for example, which requires increasingly specialised expertise,” he says. “On the other, fewer professionals are entering the industry with the intention of pursuing specialised qualifications, and many lack the technical skills employers need.

“This mismatch presents a growing concern for the future workforce. A collective, proactive effort is needed to inspire graduates to consider careers in the built environment as it continues to evolve.”