Salaries of professionals in real estate remain attractive

The average base monthly salary of real estate professionals in the Middle East continued to be attractive at Dh38,040 even after a 3.7 per cent fall from last year, a survey said yesterday.

As many as 41 per cent of the professionals in the sector got bonuses this year.

The sector will attract more opportunities for professionals and the long-term outlook for the region is vibrant, particularly with focus on re-construction and re-financing increasing, Macdonald and Company, according to a property recruitment specialist in its 'Middle East Salary Survey'.

While the average salary for development managers was $14,269 (Dh52,367) per month, it was $12,553 for commercial/contract managers, $12,302 for project managers, $8,989 for quantity surveyors and $8,520 for architects.

"The real estate sector will witness more job opportunities particularly for those on the finance side as demand for specialists who can help with re-structuring and re-financing is expected to increase," William Buck, Director, Macdonald and Company, told Emirates Business.

According to the survey, completed in collaboration with The Royal Institution of Chartered Surveyors (RICS) and Cityscapeintelligence.com (CI), the average base salary is 7.2 per cent more than what it was in 2007 but shows a 3.7 per cent decline from last year.

Findings from the survey revealed that only 21 per cent of respondents received an increase in base salary this year – significantly down from 71 per cent the previous year.

Moreover, 19 per cent of the respondents have received a salary reduction compared to one per cent last year, while 37 per cent experienced no change, versus 35 per cent last year.

The average salaries for professionals with more than 20 years of experience declined from more than $15,000 to around $ 13,000 per month whereas these were between $11,000 and 12,000 for professionals carrying a 16-20 years of work experience. For five to 10 years experience the salaries in 2009 were around $8,500, while those with less than four years of experience drew around $6,000 a month. Maximum fall was seen in case of professionals having work experience of 11 years to 15 years, who drew $9,000 a month.

"The current salaries are attractive when compared with those of professionals in other parts of the world.

Even now expatriates are drawing 30 per cent to 40 per cent more than what they would get in their home countries," said Buck.

In spite of the downturn, 41 per cent of the real estate professionals received bonuses. This, however, was lower compared to 59 per cent of last year.

Almost 60 per cent said they did not receive any bonuses. The average bonus per year was $13,630, down from $15,446 last year.

"Salaries did come down but the market needed to see some correction in property prices and also salaries. At the present levels, the salaries are sustainable and would attract talent.

"Even as there were lay offs, almost 66 per cent of our respondents said they got jobs within the region. This region continues to stay attractive and we are positive on the long-term outlook," said Buck.

He said fresh opportunities would be driven by the fact that more development projects are going to be completed. There would be more existing assets, more professionals needed.

As real estate firms take a relook at their plans, there would be higher demand for a new breed of professionals whose proficiency lies in maximising the value of real estate assets.

"There are early signs of improvement in the world economy, but confidence and availability of capital continue to severely affect the real estate market. Despite the current economic climate, the job market has not and will not grind to a halt. Many organisations are taking the opportunity to 'up skill' or expand teams that have suffered long term skill shortages," said Buck.

Individuals who are able to help restructure and refinance projects- help with refinancing, with investment banking and looking after the cost of whole development are expected to get the best salaries.

"Companies are restructuring, refinancing and re-determining their position in line with current market conditions and the ones who are able to provide skills in this sphere would be in high demand. Those involved with financials are likely to get more opportunities," he added.

"Financing and refinancing is very important at the moment, as the sector looks at different ways of raising finance and continue and complete projects. "

Assessing current market sentiment, the study listed salary and responsibility as the most important factors when it comes to job satisfaction, followed closely by job security, up by 13 per cent on last year, and career progression. Interestingly, the offer of a better salary is still the most likely impetus for changing job.

Nearly 80 per cent of the respondents rated salary as the most critical factor in their choice for a job. This was followed by factors such as responsibility, job security. Career profession and management style were also high on the radar.

The majority of survey participants, 73 per cent, a decline of six per cent from last year, said they were fairly or very satisfied with their current employment.

Compared to last year when 16 per cent said they were not satisfied with their jobs, this year the proportion increased to 18 per cent.

The survey also showed that respondents are far more likely to consider working in other Middle East locations than in previous years, which shows a general confidence in the region and a desire to continue their careers here.

There is still confidence in the long-term prospects of the real estate market throughout the Middle East, with 46 per cent of respondents expecting an increase in economic activity in the next 12 months. Professionals want to remain in the region; however, they are much more open to working outside of the UAE in comparison to previous years.

The long-term prospects of the region – driven mainly by its strong fundamentals – remain vibrant. Forty-six per cent of the respondents still strongly believe that the property market will get bett.

A total of 2,083 Middle East real estate professionals – double the number of participants last year – took part in the online survey by Macdonald & Company, which was conducted in July and August 2009.

Of the total number of respondents, 43 per cent are working in Dubai, a drop of 27 per cent compared to last year.

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