Private Real Estate
compensation growth slows

Remuneration growth is muted as the world tackles inflation, according to Sousou Partners, the executive search firm which partners with PERE for an annual pay report. By Peter Benson

When it comes to private real estate compensation, 2022 will be recorded as a year in which increases slowed down. The market faced myriad challenges in 2022, including occupational issues at the property level and broader macroeconomic headwinds with Russia’s invasion of Ukraine compounding existing inflation concerns.

The year ended with soaring interest rates as governments and central banks tried to mitigate the fallout. All of that significantly reduced transactional activity in private real estate. Global investment volumes fell 20 percent in the full year, totaling $1.14 trillion, according to advisory firm CBRE.

Mirroring the soaring rates, the decline in Q4 was the sharpest, drop- ping 60 percent year-on-year to $226 billion of deals completed. PERE’s 2022 fundraising data told a similar story, showing a 21 percent drop in capital raised to $168.7 billion, the lowest figure in at least five years.

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Published on – PERE • April 2023