Property Consulting – UK Real Estate Labour Market Trends, July 2023
INTEREST RATES WEIGH ON REAL ESTATE AS RECRUITMENT DROPS 11% YOY
Key findings include:
- Vacancies in 2023 are on track to be 11.1% down on 2022.
- In contrast, Finance Managers are in demand, with vacancies up 15%
- Facility Management is expected to increase, the forecast is by 56.3%
- CBRE are ones to watch, with vacancies up 36% on last year
The Real Estate Industry is starting to hit headwinds not seen in a generation, as interest rates start to rise. Insofar as the long-term average interest rate has been around 4-5%, the last decade has seen low rates and unprecedented amounts of quantitative easing, which, as they have ended, have meant the industry is under pressure.
Hence, the 2023 forecast suggests a decline of 11.1% on 2022, according to the latest UK Real Estate Market trends report by market data analysts Vacancysoft.
James Chaplin – Chief Executive – Vacancysoft – commented:
“The combination of higher interest rates, the prolonged work-from-home culture and headwind in the economy has been causing challenges for the sector. Looking ahead though, the signs are starting to be positive as inflation falls.”
Skills in Demand
In terms of role types in demand, Facility Management stands out, with a significant increase in job opportunities. In 2022, there were 338 job postings for this role, marking a 14.2% year-on-year change. Looking ahead to the 2023 forecast, it is projected that the numbers for Facility Management could exceed 400, reaching an estimated 438 positions.
However, vacancies for internal recruiters are set to be the most adversely affected, with a negative -64% year-on-year change according to the 2023 forecast. This marks the second consecutive year of negative growth for this role. This is an area to watch as a barometer of confidence.
CBRE & JLL lead the way
CBRE Inc, a major player in the real estate market, are on track for a 36.2% year-on-year change, a sign of their confidence in the market. Similarly, JLL are also set for an increase of 43.6% in vacancies this year. However, it is worth noting that of the top twenty companies, only four had a positive growth in vacancies, this year so far.
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