Industry insights and figures Real estate activities

Operating margin
40.9 %
▼ -0.4pp
2020
Companies
1348281
2020

Key insights Real estate activities

Actionable signals from current data
EU27_2020
Average operating result: 40.9% of revenue (2020).
Personnel costs: 11.8% of revenue (2020).
Number of companies: 1,348,281 (2020).

Sector outlook Real estate activities

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Real estate activities sector across EU27 average comprises approximately 1,348,281 enterprises employing about 1,486,672 people and generating €468.1 bn in net turnover in 2020. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a robust operating margin of 40.9% of revenue in 2020, the sector reports €191.3 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

The Real estate activities cost mix is reasonably balanced: cost of revenue at 51.3%, personnel at 11.8% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Trend & trajectory

Over the period 2011 to 2020 the operating margin moved from 6.4% to 40.9% (+34.5 percentage points), an encouraging upward trajectory. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Real estate activities

Sector average % of revenue
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Cost structure for Real estate activities in EU27_2020, 2008 to 2020, expressed as percentage of revenue.
Revenue / costs 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 10.0% 10.4% 10.7% 10.8% 11.0% 11.1% 11.6% 11.9% 11.8%
Gross wages 8.1% 8.3% 8.4% 8.6% 8.7% 9.2% 9.4% 9.4%
Social and pension contributions 2.2% 2.3% 2.4% 2.4% 2.4% 2.4% 2.4% 2.5% 2.5% 2.4%
Other costs 83.6% 47.2% 45.7% 45.4% 46.4% 46.9% 47.2% 46.8% 47.3%
Gross operating surplus (EBITDA) 6.4% 42.3% 43.6% 43.8% 42.6% 42.0% 40.6% 41.1% 41.3% 40.9%
Depreciation 111.5% 113.3% 115.7% 114.8% 117.1% 109.1% 111.2% 115.6% 118.8% 126.2%
Operating result (EBIT) -105.1% -70.9% -72.1% -71.0% -74.4% -67.1% -70.5% -74.5% -77.6% -85.4%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 10 years

Sector average % of revenue
Average
38.5%
Peak
43.84%
2014
Low
6.38%
2011
Latest
40.86%
2020

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Real estate activities (2020)

Recommended next steps

Based on the latest available data for Real estate activities