Women in Real Estate: High representation but long road to equal pay

Gender inequality in the workforce is major concern globally, and with very good reason. The repercussions of this issue cut across social, economic, ethical, and productivity concerns. The scale of the issue can be grasped, based on the findings of the World Economic Forum’s Global Gender Gap Report 2021(1). The report’s Economic Participation and Opportunity index reported that only 58% of the gap between the genders had been closed so far, in this critical metric. And that, at the current rate the gap would take another 267.6 years to close!

A superficial consideration of the global real estate industry can sometimes point to a significantly lower gap – even though it is still quite significant currently. But a closer, more nuanced look reveals that this is only the case because of a large number of women employed as brokers by the industry. Despite this, the overall numbers are far short of commendable, and point to systemic inequalities. 7 out of 10 realtors in the US are women, according to the National Association of Realtors. However, male realtors in the United States earn $97,188 a year, on average; compared to the average figure of just $60,869, for their female counterparts(2). Worse still, the number of women in leadership positions, within the industry, continues to be significantly lower than the figure for men. In fact, the low numbers of women at the highest echelons of the industry, is what accounts for the huge disparity in average remuneration.

Contribution of women in the UAE Real Estate industry

Looking at the regional real estate industry, one finds that women are not only significant contributors to the sector; they are also bridging the gender-inequality gap at an accelerated pace. As a case in point; as part of a webinar hosted by Bayut(3) – one of the GCC’s leading property portals – on the occasion of the Emirati Women’s Day 2020; a panel of high-ranking real estate entrepreneurs and business leaders in the region, observed that according to the DLD’s Q2 2020 figures, 1,781 women finalized nearly 2,000 deals worth AED2.6 billion in Dubai, with the H1 2020 figures confirming that 4,536 women investors has invested a total of AED6.6 billion, in more than 5,000 deals, in the city. In fact, nearly a third of the real estate in Dubai is owned by women(4).

These observations confirm the contribution of women to the UAE real estate sector – an industry that makes up a significant portion of the UAE’s GDP. And if further confirmation were needed, the panelists were informed that Bayut itself boasts a workforce that consists of nearly 40% women employees, with almost 50% of the top management positions held by them as well.

A long overdue correction

The social cost of gender inequality is being universally recognized, as a key challenge to promoting global development and economic inclusion(5),by most global bodies. But the marginalization of women, in the workforce has a very stark impact on economic growth and development indices as well. According to the World Bank(6), women are only 38% of the human capital being leveraged for economic growth, globally. This unrealized potential may be leading to wealth losses of $23,620, per person; with the total cost of gender inequality being an estimated $160.2 trillion, globally.

As an industry, Real Estate can be a significant contributor to addressing this imbalance. And considering how central the sector is to both the current valuation of most economies around the world, as well as their projected growth potential; the industry can play the role of an engine of positive change. With most real estate markets around the world already registering a significant number of women in the workforce; the industry now needs to graduate to making more room for women, in its boardrooms and top management positions, as well.

  1. http://www3.weforum.org/docs/WEF_GGGR_2021.pdf
  2. https://finance.yahoo.com/news/most-residential-realtors-may-be-women-but-inequality-is-still-prevalent-in-the-real-estate-industry-143341098.html?guccounter=1
  3. http://tradearabia.com/news/EDU_372109.html
  4. https://en.wikipedia.org/wiki/Women_in_the_United_Arab_Emirates
  5. https://www.ohchr.org/Documents/Issues/Business/Gender/GenderRoundtableEconomic.pdf
https://www.worldbank.org/en/topic/gender/publication/unrealized-potential-the-high-cost-of-gender-inequality-in-earnings

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