RICS: Optimism is returning to the market (EU)

Most European real estate professionals are confident in the future of the market and are seeing some improvement in the way they are rewarded at work, according to the latest RICS & MacDonald European Property Remuneration survey published yesterday (March 8, 2011).

According to the results of this year's survey, the percentage of professionals who lost their job in the past 12 months dropped from 13% to 9% and only 8% of respondents interviewed experienced some form of salary reduction (down from 14% last year).

Furthermore, employment benefits have increased significantly and the number of RICS members having received an annual bonus has gone up 6%, though it has to be mentioned that on average these bonuses were lower than in the previous year.

Although the average salary increase was no better than last year (even slightly down, from €71,809 to €70,183), 32% of respondents interviewed reported an increase in base salary this year (up from 24% the previous year).

Once again findings show a cutting-edge advantage for those professionals, who working in all sectors of the real estate, are 'RICS qualified'. On average RICS members earned 60% more than those who are not 'professionally qualified', with an average salary of €83,314 (against €52,028).

Chartered surveyors were particularly well rewarded in the Benelux region (€104,000) and Scandinavia (€99,000).

Although this positive trend is still hindered by the effects of the economic crisis, market sentiment has improved with regards to last year, with 54% of respondents interviewed expecting an increase in economic activity in 2011. Additionally, respondents are confident that Europe will be at the forefront of any sustained global recovery.

Peter Moore MRICS, Managing Director at Macdonald & Company Property Limited says: "A new level of confidence has returned to the property market in continental Europe following two years of very tough market conditions. 54% of European property professionals believe the market will improve this year; this is in direct contrast to their much more pessimistic colleagues in the UK, where only 24% believe the market will get better.

"There is a tangible belief in mainland Europe that the market is moving in a positive direction and this positivity is leading to better financial rewards particularly for those professionals that are RICS qualified."

Liliane Van Cauwenbergh, Managing Director RICS Europe, concludes: "I am pleased to see that RICS' efforts to set and enforce professional standards in continental Europe are paying off for our European membership.

Also, with record participation, this year's survey reflects a new optimism of European real estate professionals who want to remain active in the European market and consider that they work for "an employer of choice".

Source: RICS Europe

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