Built environment salaries rise sharply as employers face talent retention challenge

Salaries across the UK real estate sector have risen sharply over the past year, but employers face growing pressure to offer more than competitive pay as professionals demand greater flexibility, career progression and recognition.

The findings come from Macdonald & Company’s 2026 Salary, Rewards and Sentiments report, which draws on more than 12,000 salary data points and feedback from professionals across the real estate sector.

The median salary for UK real estate professionals has reached £70,000, up from £65,000 in 2025, representing an average annual increase of 9.6%.

However, the report suggests that employers cannot rely on salary increases alone to attract and retain skilled professionals.

Around 40% of UK respondents said they are likely to move jobs in 2026, with career progression, pay and workplace factors among the issues influencing decisions to stay or leave.

Changing jobs pays

For professionals looking to increase their earnings, moving employer continues to offer one of the biggest financial rewards: those who changed jobs received an average 20% salary increase, compared with 18% for those receiving a promotion.

Professional qualifications can also deliver a significant boost, with respondents who gained a qualification reporting an average 20.4% increase in salary, particularly among assistants and consultants.

The report highlights the importance of employers providing clear routes for career development if they want to retain experienced staff rather than losing them to competitors.

At the same time, bonuses are becoming less generous. The average UK bonus has fallen to £10,000, down from £12,000 in 2025 and £19,000 in 2024. Macdonald & Company says the decline reflects stagnation in real estate transactions and activity.

Specialist skills command a premium

Pay also varies significantly according to the part of the real estate market in which professionals work. Data centres remain the highest-paying sector, followed by hospitality, leisure, build-to-rent and alternative residential markets including senior living and student accommodation.

The geographical pay gap is also beginning to narrow. Professionals in Greater London and the South East earn around £10,000 more on average than those elsewhere in the UK, although investment spreading into regional markets is starting to close the difference.

Flexibility remains a key issue

While salaries have increased, workplace flexibility is coming under pressure. UK professionals spend an average of 2.5 days a week in the office or onsite, with 77% saying their employer sets a mandatory number of office days.

The wider report found that 61% of respondents believe that an increase in mandatory office days would negatively affect them – creating a potential recruitment challenge for employers seeking to attract professionals who have become accustomed to hybrid working.

AI adds another dimension

Technology is also changing expectations across the sector. Around 52% of respondents said their organisation or team uses AI in the workplace, with the technology increasingly viewed as a way to improve productivity and efficiency.

For employers, the report suggests that investing in technology will need to go hand in hand with investing in people – particularly as roles and skills evolve.

Pay gaps remain

Despite overall salary growth, significant pay disparities persist. The calculated gender pay gap in the UK real estate sector is 16%, while the ethnicity pay gap is around 20%. Both become more pronounced at senior levels, highlighting continued challenges around progression into leadership roles.

Women in the survey had a median salary of £63,000, compared with £75,000 for men, while the median salary for respondents from an ethnic minority background was £60,000, compared with £75,000 for those from a white ethnic background.

Employers need to offer more than money

The report paints a picture of a workforce benefiting from strong salary growth but becoming increasingly selective about what it expects from employers.

Just 53% of UK respondents said they feel valued in their current role, while 18% said they feel undervalued. Positive workplace culture, good relationships with managers and opportunities for career development were among the factors associated with feeling valued.

Simon Crabb, managing director of UK at Macdonald & Company, said the rise in salaries reflected sustained demand for experienced professionals and a shortage of immediately deployable talent.

But he warned that competitive pay was “no longer sufficient on its own”, with professionals also expecting transparency, progression and purpose.

For employers across the built environment, the message is clear: paying more may help win talent, but retaining it will require a broader proposition – combining competitive salaries with meaningful career opportunities, flexibility, and a workplace where people feel valued.

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