Pay packets repackaged

In Poland and other Central and Eastern European countries, salaries for commercial real estate positions are lower than in Western Europe, but a rising trend is noticeable, points out Oskar Kasiński, the CEO of HR Design Group, who goes on to explain: “These differences are primarily due to higher wages, living costs, competition, and a more developed capital market in Western Europe. Poland and other CEE countries, despite rising wages, remain an attractive labour market for international investors due to lower operational costs.” According to HR Design Group’s figures, in Poland leasing managers earn an average of PLN 15,000–20,000 gross (app. EUR 3,500–5,000) per month, whereas in Western European countries, such as Germany or France, salaries for similar positions range from EUR 5,000 to even EUR 9,000 per month. Project managers in Poland, meanwhile, can expect to earn between PLN 18,000–25,000, but in Western Europe such monthly salaries start at 5,000 EUR and can reach EUR 10,000. And for asset managers in Western Europe, those managing entire real estate portfolios can earn up to EUR 15,000 per month, while in Poland these salaries typically range between PLN 8,000–30,000 gross. But while these differentials might seem unfavourable to those in working in our region, the contrary is in fact the case. According to Gergely Stewart, the managing director of Adelphi Recruitment in the UK: “Comparing this with Western Europe, and having recruited in CEE region since 2008, what I can say is that I have seen significant rises in candidate income within the region, to the extent that today, considering the comparative cost of living compared to Paris or London, and with the rapid development of cities such as Warsaw and Prague, I believe talented real estate professionals can enjoy a better comparative standard of living within the region when compared with their Western counterparts,” he says and uses salaries in Warsaw as an example of this: “We can take the basic salary structures of a real estate investment fund in Warsaw, the hub for the region, and London, the hub for Western European markets, to make a direct comparison. Here we see comparative salaries are around 25-35 pct less in Warsaw, although the cost of living difference between the two cities is closer to 80 pct (and rental costs are more than double).”

But how do salaries for real estate professionals differ across the CEE region? According to Karolina Białowarczuk, a senior business manager for construction and property at Hays Poland, it is Polish property executives who are receiving the highest remuneration: “The salaries offered to commercial real estate managers in Poland are usually slightly higher than in other Central and Eastern European countries. The market here is simply larger, which increases both its competitiveness and the rates offered to professionals.” And due to the size of the Polish market, managers with responsibility for the entire region tend to be based in this country, with a prime example being asset management. “It’s worth mentioning here that asset management is also a specialisation that offers some of the most attractive career paths in commercial real estate, including competitive salaries. The top candidates can receive offers of up to PLN 35,000 gross per month, which is considered a high salary in Poland,” adds Karolina Białowarczuk.

Dividing up the cake

The commercial real estate sector is naturally divided into several different asset classes, with the main ones being warehousing, office and retail. And it should be almost as obvious to any observer that these segments have fared rather differently in recent years. Trends that were evident before the pandemic have accelerated post-Covid. The office market has had to downsize as employees switched to hybrid work formats and less office space was required; while retail real estate was already facing the spectre of the ‘retail armageddon’ before coronavirus reared its ugly head, as an over-saturated market shrank back in the face as the rise of e-commerce. And so, the main winner of these changing lifestyles and working habits has been the warehouse sector, which in Poland has experienced a significant boom in recent years and as the market across the country also benefited from the trend for near-shoring, although activity has cooled over the last difficult period for the economy, while the geo-political uncertainty of bordering a country that has been invaded hasn’t helped either. So what has all this meant in terms of salaries and the demand for certain personnel?

“Perhaps fifteen years ago, the differences in salaries between sectors were more noticeable. At a time when logistics was the less fashionable and in-demand sector, and with the largest international investors focusing on developing flagship retail and office projects, the largest salaries were to be found in those segments of the market,” relates Gergely Stewart of Adelphi Recruitment. “Today, there are no significant differences between, for example, an asset manager in the logistics market vs. an asset manager in retail with comparable portfolios to manage.”

The hard data

As for the specific numbers, these are provided by Oskar Kasiński of HRDG: “The warehouse sector saw a sharp increase in wages during the pandemic, especially in Poland and Central and Eastern Europe. Salaries in logistics have risen by 20-30 pct over the last three years. The growth of e-commerce led to a higher demand for experienced managers, whose salaries in Poland could range from PLN 18,000 to PLN 30,000 – a significant increase of around 20–30 pct over the last three years.” However, he adds that 2024 has also brought with it a slowdown in hiring in this sector, with the forecasts for 2025 predicting wage stabilisation. He goes on to say that for the office segment salaries have stagnated and are now only growing at a slower pace. “In Poland, project managers in the office sector earn between PLN 15,000 and PLN 25,000. In Western Europe, wages range from EUR 6,000 to EUR 10,000, but this segment was heavily impacted by the Covid-19 pandemic, which redefined tenants’ needs and, in turn, influenced wage dynamics,” he explains. And as for retail: “Salaries for project managers and leasing managers remain stable. In Poland, leasing managers’ salaries range between PLN 15,000 and PLN 20,000, sometimes up to PLN 25,000, while in Western Europe they can reach as much as EUR 8,500–9,000, although changing consumer habits have slowed salary growth in this sector,” reveals Oskar Kasiński.

Karolina Białowarczuk of Hays Poland agrees that the commercial property market is stable across all sectors and that “there are currently no segments in dynamic growth nor those in crisis. This means that while vacancies for managers are appearing in retail, warehouse and office markets, none of them are experiencing a significantly higher demand for employees. Therefore, none of them have to compete strongly for candidates in terms of salaries. The situation was somewhat different two to three years ago when wages in the warehouse segment were growing rapidly. While salaries in this market are still competitive, they are not significantly more attractive compared to other segments.” However, she goes on to note that some of the more niche and nascent segments in Poland are becoming increasingly attractive to employees as they take off. “The private rented sector (PRS) and purpose-built student accommodation (PBSA) are slowly but steadily growing on the Polish market and becoming the most favoured by candidates in terms of wages and career development. Organisations in this sector are successfully attracting professionals who previously specialised in the hotel segment. Additionally, property management with a data centre profile, that is warehouses with a strong electrical and technological infrastructure, can also be identified as a future-oriented segment. It is generating great interest among professionals, even though it is only just starting to emerge in Poland,” she points out.

Gergely Stewart has noticed an interesting recruitment phenomenon of late – that of real estate professionals shifting between segments: “I have seen an increased willingness in recent years among employers to hire candidates moving between sectors. No longer is a shopping centre leasing manager likely to remain focused on retail for all of their career – logistics developers, especially, which have mushroomed in the last 7–8 years, have been working with a much more limited warehouse specialist talent pool when hiring, and there has been plenty of movement of professionals to meet that demand, especially from the office sector.”

The hottest properties

Who, then, are currently the most in-demand specialists in commercial real estate? According to Oskar Kasiński: “The most sought-after experts are those in business development, investor acquisition, asset management, capital markets, as well as project managers and other technical roles related to project execution. The demand for these positions is particularly noticeable in Poland and other CEE countries, where international companies are increasingly recruiting local specialists, offering attractive salaries and benefits.” Karolina Białowarczuk adds land acquisition managers to the list. “This can be identified as a position that is consistently in high demand by employers. Acquiring land for construction is increasingly difficult in Poland, especially if it has a complicated legal situation or is located in large cities. Meanwhile, there is a lack of experts with an impressive track record of successfully acquiring land for high-end projects. This affects salaries, and a land acquisition manager typically earns a monthly gross salary of PLN 18,000 to PLN 20,000.” Gergely Stewart also stresses the difficulties employers are having finding qualified land acquisition managers: “One area that developers complain about being especially hard to find people is within land acquisition, where the pool of candidates is indeed very small,” he admits. “But speaking more generally, what employers are seeking most of all now are people who can create and optimise value in the business, whether that be in leasing, asset and property management, development or investment. They want their senior managers to have strong soft/people skills as well as hard real estate knowledge, to be strong negotiators and problem solvers. They also want professionals who can bring fresh ideas, especially in terms of implementing technology into the business, and knowledge of ESG. Along with the options being limited, employers are also faced with the challenge of a more conservative candidate market. Stability is the key word among candidates today,” explains the managing director of Adelphi Recruitment.

Perk-life

Which brings us to the question of what real estate companies need to do to attract and retain the talent required for them to succeed in a testing market. “In addition to competitive salaries, commercial real estate specialists can expect attractive bonus packages,” says Oskar Kasiński. Bonuses in this industry are often tied to the financial performance of projects, such as rental income levels, building occupancy rates, or project completion timelines. In Poland, depending on the position, bonuses can range from 10 pct to 30 pct of the annual base salary. In Western Europe, bonuses can constitute up to 40 pct of the annual salary, especially for senior positions in large investment firms.” He also lists the kinds of perk typical at the moment: a company car, medical care, a sports club card... “This has become a market standard in larger companies. Increasingly common perks include lunch vouchers, prepaid multicafeteria cards, or unlimited remote working days. Companies that have already introduced such benefits notice that it positively impacts employee retention and attracting new talent,” he continues, while adding that other key factors are flexibility and clarity over the prospects for career advancement: “In Poland, an increasing number of companies offer flexible working hours, remote working options, and extensive professional development programmes. Companies that offer clear career paths, training support, and access to modern technologies are more likely to retain key specialists. Additionally, a positive company culture, work-life balance, and the potential for real advancement are crucial for today’s managers, especially in the rapidly growing commercial real estate sector.”

Karolina Białowarczuk also emphasises how important flexible hours are in the age of hybrid work as well as the quality of the company culture: “The reputation of the employer and the work culture within the organisation are of great importance. Candidates very often mention poor relationships with their immediate supervisors or a lack of managerial skills as reasons for seeking new employment. As a result, they expect the new company to be better in this area. If they hear negative opinions in the market about an employer, this is a strong demotivating factor for them.” And of equal importance to potential recruits, in her opinion, is the prestige of the portfolio they would be working on: “The appeal of the projects in terms of their recognition and prestige is also a crucial factor. In the current market situation, simply having a portfolio of projects is very important. In some organisations, it happens that professionals currently do not have many projects to work on or are primarily occupied with administrative tasks for an extended time. This is not only tedious for them, but they also take it as a clear signal to look for a new job.”

“The reality is that the best policy to retain talent is to have a good business trajectory and a very individual approach to team members, as it is surprising the extent to which people’s individual motivations can differ, from flexible hours and work/life balance, to the opportunity for training and professional development, to status, income and much more,” insists Gergely Stewart. However, real estate companies also need to take on board the differing expectations of the generations starting out on their career paths: “There is an interesting and more general point about the different approaches needed for attracting and retaining different generations of candidates. Whilst candidates of all ages are focused on having interesting professional challenges, experiencing a growing business and working in a collaborative and supportive environment, for the younger generations, salary and income in general are of less significance. On the whole they are looking for belonging and purpose in their career. They want to believe in the mission of their business, to feel part of something bigger that is bringing a positive effect to the world around them. Strong ESG policies, for example, have become and will become an ever more important part of what these younger employees want to see within the businesses they join,” he concludes.