Women In Real Estate: A Growing Force In Investment

Today we speak about women in real estate, but before we delve so quickly into this topic let’s rewind and start from the beginning of it all…

Historically, women’s financial contributions were often overshadowed by societal norms. However, the 21st century marked a pivotal era of change.

The advent of digital technology democratized access to financial information, enabling more women to manage their finances and invest with newfound confidence.

Breaking Barriers to Financial Literacy with Women

• Did you know? A critical barrier to entry for many women is financial literacy. The Almenberg and Dreber study of 1,300 Swedish investors revealed that when financial literacy levels are equalized, women and men participate in investing at comparable rates.

The Rise of Female Investors: A Global Perspective

A 2021 Fidelity Women and Investing Study found that 67% of women are now investing outside of their retirement accounts, up from 44% in 2018. 

• Global Trends: According to The National News, a 2021 Fidelity Women and Investing Study found that 67% of women are now investing outside of their retirement accounts, up from 44% in 2018.
• Future Projections: McKinsey forecasts that by the end of this decade, women are expected to control over $30 trillion in assets, up from $10 trillion.

Behavioral Differences in Investing

Women are increasingly recognized for their strategic investment choices, favoring long-term planning, diversification, and risk management over speculative bets.

An analysis of over five million Fidelity accounts suggests that women tend to achieve better investment performance than men.

• Higher Returns: Women investors have consistently outperformed their male counterparts, achieving higher returns with a difference ranging from 0.4% to nearly 1% more.

Involvement and Long-Term Perspective

Encouraging women to take an active role in investment decisions from an early age is crucial for engagement and empowerment.

• Young Generations: Fidelity’s 2021 Women and Investing Study highlighted that 71% of Generation Z women and 63% of millennials participate in the stock market.
• Retirement Savings: Approximately 60% of women now engage in stock market investments, with 68% diligently saving for retirement.

The GCC’s Paradigm Shift: A Closer Look at Women In Real Estate

As we celebrate International Women’s Day, it’s essential to spotlight the strides women have made in investing, particularly in the UAE and Saudi Arabia.

UAE: A Hub of Female Financial Empowerment

• Real Estate Investment: The UAE has seen an unprecedented influx of female investors in the real estate sector.
• Significant Growth: The number of women investors in the UAE’s real estate market rose from 26,698 in 2022 to 38,059 in 2023, a 42.5% increase.
• Substantial Investments: In 2023, women collectively invested approximately $25 billion (AED 90.5 billion) into the market, marking a 53.9% jump from the previous year.
• Future Projections: Women are projected to contribute about 22% of the total real estate investments in Dubai in the first quarter of 2024, estimated at $3.27 billion (AED 12 billion).

Saudi Arabia’s Visionary Path: Women In Real Estate

Under its Vision 2030 blueprint, Saudi Arabia has made remarkable progress in integrating women into the economic fabric of the nation.

The Saudi Arabia Real Estate Development Fund (REDF) has helped approximately 73,000 Saudi women become first-time homeowners.

• Empowerment Initiatives: The Saudi Arabia Real Estate Development Fund (REDF) has helped approximately 73,000 Saudi women become first-time homeowners.
• Leadership: Sarah AlSuhaimi, the first Saudi woman to chair the Saudi Tadawul Group, exemplifies the potential of female leadership in reshaping the investment landscape.

Ending Note

The growing economic empowerment of women globally is catalyzing broader societal appreciation and encouraging a more inclusive perspective on wealth creation.

This progress, while impressive, is merely the beginning of a journey toward true gender parity in the finance and investment industries.