India’s Real Estate Sector Embraces Talent, Pay, and Parity
The Indian real estate sector is witnessing a significant shift in how it values and rewards its workforce, with a focus on strategic leadership, performance-based rewards, and gender inclusion.
Real EstateCompensation TrendsGender InclusionLeadership RolesPerformancebased RewardsReal Estate NewsAug 04, 2025
A closer look at FY25 indicates that the current momentum goes beyond a typical post-covid resurgence, pointing to a strategic realignment in the industry’s treatment of people and compensation.
Compensation Growth Outpaces Pre-Covid Benchmarks
The sector’s pay structure tells a story of recovery, competition, and strategic realignment. Compensation trends have posted a striking 8.87 percent CAGR over the past three years, far above the five percent CAGR of the pre-pandemic period. This growth is not incidental; it reflects a broader shift in mindset across firms that are investing in talent as a critical lever for business momentum.
Leadership Roles Take Centre Stage
Senior leadership roles are leading the surge. The top-level total cost to the company, excluding long-term incentives, has jumped from ₹1.33 crore in FY21 to ₹1.91 crore in FY25. This sharp increase is a compelling indicator of how strategic leadership is being valued in today’s real estate market. Mid-management professionals have seen compensation rise at a steady 7.5 to eight percent CAGR, affirming their value in delivering growth and operational results.
Variable Pay Gains Muscle
The evolution lies in the changing dynamics of performance recognition. Variable pay is gaining prominence as a key metric for evaluating and delivering value. The average pay-at-risk component has increased by 27 percent in the last year alone. Increment differentiation between top and average performers has widened, rising from 1.9x in FY24 to 2.0x in FY25, indicating a sharper focus on performance-based rewards. Real estate firms are doubling down on high-impact talent.
New Functions, New Priorities
The demand curve is bending towards new functional areas as the industry matures and diversifies. Talent demand has spiked in functions such as fundraising, IT application development, project design, procurement, construction, and strategic sales. Compensation in these roles has recorded a CAGR of nine to 12 percent, positioning them as future-critical capabilities in a rapidly evolving sector.
A noteworthy change in compensation trends shows that Bengaluru has surpassed Mumbai in leadership salaries, now offering a five percent premium. This shift underscores Bengaluru’s emergence as a vital real estate hub.
Gender Representation in Action: Building True Progress
In addition to compensation trends, there is a subtle but equally significant movement towards greater gender inclusion. FY25 marked a turning point, with the share of women in the workforce rising from 19 percent to 23 percent in just a year. The increase may seem modest, but it signals an intentional, sector-wide shift in a historically male-dominated industry.
At junior levels, women earn at par, or even up to eight percent more, than their male counterparts. This reflects a clear intent to hire equitably from the start. Middle management roles have also seen the gender pay gap narrow to -six percent, and even at the senior leadership level, where disparities persist, the gap now ranges between just -four percent and -nine percent.
The narrowing goes beyond numbers and signals a strategic shift. The industry is seeding a more gender-balanced leadership pipeline for tomorrow by correcting entry and mid-level inequities.
The Road Ahead: Talent as a Growth Engine
These shifts in pay, performance culture, functional demand, and diversity reflect an industry amid meaningful reinventions. Real estate is shifting from its conventional role and embracing a more progressive, inclusive, and results-oriented approach.
While firms continue to invest in tangible infrastructure, their investment in people will define the long-term trajectory of sustainable success.
Frequently Asked Questions
What is the current CAGR of compensation in the real estate sector?
The current CAGR of compensation in the real estate sector is 8.87 percent over the past three years, significantly higher than the pre-pandemic CAGR of five percent.
How has the pay for senior leadership roles changed from FY21 to FY25?
The top-level total cost to the company for senior leadership roles has increased from ₹1.33 crore in FY21 to ₹1.91 crore in FY25.
What is the significance of variable pay in the real estate sector?
Variable pay is gaining prominence as a key metric for evaluating and delivering value. The average pay-at-risk component has increased by 27 percent in the last year, and the increment differentiation between top and average performers has widened.
Which city has surpassed Mumbai in leadership salaries?
Bengaluru has surpassed Mumbai in leadership salaries, now offering a five percent premium.
How has the share of women in the real estate workforce changed in FY25?
The share of women in the workforce has risen from 19 percent to 23 percent in FY25, signaling a sector-wide shift towards greater gender inclusion.
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