Traditionally an upper or middle class, white male pursuit, working in real estate has begun a slow and painful transformation into a diverse industry, with ever-increasing representation across gender, economic background, race, religion, sexual orientation, neurodiversity and physical abilities, according to many observers. Yet there is a long road ahead for the industry to fully reflect and accept the diversity of modern society. There is a strong case for arguing that a more diverse and inclusive real estate sector could unleash a far greater and more positive impact on society than at present, observers say.
As a combination of real estate and technology sectors, proptech is still in relative infancy compared to the global real estate industry; yet a glance at the founders, CEOs and C-suite executives of companies in the industry tends to show a distinct lack of diversity.
As a vital future component of the industry, proptech has an important role to play in defining the next 100 years of real estate, including incorporating a more diverse workforce, several leaders in the sector are now noting.
Below, three proptech experts — Spurti Kanekar of workplace experience software company HqO; Adam Malik of Bloxspring, a specialist strategy and communications firm for proptech companies and Millie Lewis of investment property software company Coyote Software — share their thoughts on their own experiences of the proptech sector and how it can lead the way in diversifying real estate.
What have your observations of the wider real estate sector been during your careers ?
Millie Lewis, head of customer success at Coyote Software (ML): In real estate, there is no doubt that the decision-makers and senior management are overwhelmingly white and male. As an industry entrenched in tradition, encouraging diversity within commercial real estate is an uphill battle. The small progress achieved so far has been hard fought, but it will take a monumental effort to fully diversify the industry.
Spurti Kanekar, vice president of legal, HqO (SK): The real estate industry has often been criticized when it comes to diversity. As an industry predominantly led by white males, with exclusive and inaccessible networks, it has often been difficult for those who “don’t fit the mold” to enter the sector. However, innovative technology firms serving the market have the ability to change property from the inside out.
Adam Malik, co-founder at Bloxspring (AM): Some 15 years ago, a global real estate firm invited me for an interview. When the hiring manager called my name in reception, I stood up, walked over, and they uttered: “Oh. You’re Adam?” It was my first exposure to the deep-rooted lack of diversity and inclusion within the sector.
Fast forward, and the progress is embarrassing. A quick look at said company’s leadership page shows a mostly white and male team, and not a single person of color. The industry is lacking role models that give non-white people from underprivileged backgrounds the confidence that they too can build successful careers in real estate.
Can proptech set a different course in terms of promoting and incorporating diversity?
AM: Where real estate has been steeped in nepotism, often fast-tracking privately educated children of senior leaders to the front of the queue, technology companies bring a level of dynamism and agility to build a legacy embedded in openness and fairness, not favoritism.
The early signs are positive. With lower barriers to enter proptech, it’s created a preview for what real estate could be like.
SK: Property technology has disrupted the traditional investment landscape. VCs are funding visionary entrepreneurs (without the backing of big corporations) to establish their products. People with fresh ideas, perspectives and approaches are coming into the property market without the gatekeeping of exclusionary, traditional property networks.
The growth of proptech means we’re also starting to see a more diverse range of spokespeople at events and in the media. Seeing people that look and sound like you is a hugely powerful way of attracting others into the industry.
ML: Proptech has a unique opportunity thanks to its origins as an industry disruptor in a traditional space. The sub-sector also has a natural advantage with significant crossovers in industries with greater diversity, for example software development and data engineering.
What are the hurdles proptech needs to clear to create a pathway for diversity?
ML: There is a danger of proptech falling into the same, exclusionary patterns as its predecessors. Disappointingly, it’s clear that proptech’s trailblazing outlook has yet to extend to its approach to diversity.
At present, proptech is not changing the industry from within in terms of diversity — but there’s still the opportunity to make a positive change. There’s huge potential in transforming the industry from the top down, by encouraging people from diverse backgrounds to feel welcome in the industry and to have role models with whom they can identify.
AM: It’s a pivotal moment for proptech because it could easily head in the same direction as real estate. To take a different path requires influential leaders in the industry to make drastic changes; one of these could be to make it mandatory to use blind hiring techniques, so an “Ibrahim” has an equal shot as “Rupert.”
SK: Although progress has been made, proptech still has a long way to go. As we continue to challenge the diversity issue within the industry, we must ensure we are not falling into the same traps as traditional real estate.
What tactics are you using to support the diversity strategy in proptech?
SK: The skill set required to work for technology firms attracts a more diverse range of candidates into the property industry as a whole. As a result, proptech firms’ employees and company cultures are more inclusive and varied compared to traditional firms.
Furthermore, most tech companies are comparatively new and establish the importance of diversity, equity and inclusion (DE&I) as part of their culture from the outset. Specifically at HqO, where we focus on building a community and providing a world class workplace experience, it is incumbent upon us to elevate diversity in a way that enhances our community.
ML: There’s no straightforward solution, but we all have a responsibility to strive towards a more inclusive environment. One was we approach this at Coyote is by conducting a blind recruitment process. This ensures that we progress candidates based solely on ability, skills and experience.
AM: One way we’ve been tackling this issue is ensuring a broad range of applicants in every hiring process. Perhaps unpopular, but we also believe diversity should be more than gender and race, and factor beliefs, life experiences, interests and more.
What concluding thoughts do you have for the proptech industry as a whole?
ML: Defining a core set of guiding principles that champion social inclusion and a voice for everyone helps us to remain accountable. Whilst this alone will not solve the problem, it’s vital that as an industry we start taking action to achieve a more equitable future.
SK: With the investment landscape providing more opportunities for different types of entrepreneurs, as well as DE&I-focused hiring initiatives, I have no doubt that proptech can help change property for the better, from within. Proptech has the opportunity to write its own rules. But we still have a long way to go.
