Estate agents in London are delivering the strongest value for money globally, despite earning the lowest average commission per transaction among major international property markets, new research shows.
Analysis from AgentWise found that London ranks bottom out of 10 global cities when it comes to average commission earned per sale, even as it remains one of the world’s most valuable housing markets.
The study compared typical fee structures and average property prices across major cities including Paris, New York and Singapore, calculating the estimated commission agents earn per transaction.
London agents generate an average commission of £9,963 per sale, based on a typical fee of 1.7% and an average property price of £586,050. This places the capital behind all other cities analysed.
TOP OF THE TABLE
By contrast, Paris tops the table, where average fees of 5.5% on a property value of £669,950 result in commissions of £36,847 per transaction.
New York ranks second, with an effective commission of £25,824 per sale, while Singapore follows at £22,515. Other cities including Berlin, Madrid and Hong Kong also significantly outperform London on a per-transaction basis.
The findings highlight the extent to which lower fee structures in the UK compress agent earnings, despite high property values and a competitive operating environment.
AgentWise said the data challenges the perception that estate agency fees in London are high, arguing instead that agents deliver greater value relative to the fees charged.
HIGH CALIBRE AGENTS
Eric Corsaletti, Founder of AgentWise, says: “Agent fees in London can vary widely, particularly when it comes to the prime thresholds of the capital, but this research shows clearly that London agents earn comparatively modest commissions per transaction when set against other major global cities.
“Long term London remains one of the world’s leading real estate destinations, attracting sophisticated, high net worth individuals from around the globe and, as a result, it consistently produces some of the highest calibre agents found anywhere in the world.”
PROFESSIONAL STANDARDS
He adds: “In fact, many go on to build successful careers in other international markets, which reflects the strength of their training, experience, and professional standards.
“So when you consider the quality of service, regulatory requirements, and competitive pressures that London agents operate under, it’s fair to say that they arguably add the most value when you consider the fees charged versus other global markets.
“Yet the prevailing perception amongst London’s home sellers is that estate agency fees are high, despite the fact that they pay considerably less compared to their international counterparts in many other global cities.”
