Inclusive leadership in real estate: A pathway to better cities

Inclusivity becomes a systemic reality when our cities, infrastructure, and buildings are deliberately designed to promote it.

An inclusive city fosters social and economic development, creating environments where everyone can thrive.

Considering that approximately 57% of the global population resides in urban areas, which contribute around 80% of the world’s GDP, inclusivity directly impacts the lives of nearly 5 billion people and a staggering $71tn.

Our role in shaping cities

At Cushman & Wakefield | BROLL, we are more than just real estate advisors. We are city shapers, and we recognise the significant role we play in influencing the lives of urban inhabitants.

Cushman & Wakefield has developed the industry's first Inclusive Cities Barometer, a powerful tool that fosters a data-driven dialogue on how real estate activities impact urban inclusion and the social fabric of our cities.

The Inclusive Cities Barometer assesses the inclusiveness of 44 cities in EMEA and 35 cities in APAC, based on nearly 9,000 data points, 110 metrics across four dimensions, and 12 subdimensions. It serves as a guide to inspire cities and industry stakeholders to create more inclusive, vibrant, and sustainable urban environments.

The essence of inclusive cities

Inclusive cities prioritise diversity, equity, and accessibility for all residents, regardless of their background, identity, or socioeconomic status. They embody principles of spatial justice, ensuring that all citizens can participate independently and productively in all aspects of urban life. This includes measures such as close connectivity between housing and work locations to support families and promote gender equality, as well as mixed-use development schemes that enhance the urban experience and contribute to reducing crime at night, making our cities safer and more secure.

It is essential to remember that no two cities are alike. Cities are dynamic ecosystems shaped by various factors, including the needs of the diverse groups of people who inhabit them.

Inclusivity as an asset

Inclusivity is a valuable asset. More inclusive cities tend to attract talent and innovation, leading to investment and growth that benefits both organisations and individuals through increased social mobility and entrepreneurship. They are more adaptable to the changing needs and expectations of their citizens and stakeholders.

Through collaboration between urban planners, government, design, and real estate industries—the stewards of the built environment—we can create flourishing environments where everyone prospers.

Categorising inclusive cities

Many cities are advancing towards greater inclusivity, and measuring their progress is crucial to understanding how to create social value through responsible real estate activities.

The Inclusive Cities Barometer acknowledges that not all cities "start from the same starting line," allowing for a more nuanced and constructive approach to supporting increased social value through urban inclusion. This is a vital consideration for South Africa, where many cities were, in the past, designed for exclusion.

In the report, cities are grouped into four categories based on their progress towards inclusive urban environments. Mature Urban Centres have a long history of social inclusion, prioritising citizens' needs, aiming for equal wealth distribution and balanced economic growth. Social Drivers show strong social inclusion across many areas but are still working to reduce wealth and lifestyle inequalities. Rapid Risers were previously less focused on equitable economic and social development but are now rapidly advancing their urban inclusion initiatives. Emergers are just beginning their journey towards urban inclusion, with strong ambition and eagerness to improve.

South Africa's progress

Notably, Johannesburg, Cape Town, and other key African cities, including Cairo, Nairobi, and Lagos, fall into the Emergers category.

For both South African Cities, the top three factors contributing towards their inclusivity are access to parks and green public spaces (and beaches in Cape Town), increasing efforts through community-led movements to empower and support the progression and integration of marginalised communities, and increasing efforts to provide social infrastructure to all residents by building connectivity between previously segregated communities.

This progress is promising, but more needs to be done. However, as the barometer points out, achieving greater inclusivity involves addressing complex and interrelated factors. Are there high-quality jobs for all skill groups? Can people travel safely and cost-effectively on public transport to reach these jobs? Are they safe in all parts of the city at night? Do they face discrimination or isolation in certain areas? Creating inclusive cities requires collaboration between communities, policymakers, and organisations that design and manage physical spaces.

The impact of female leadership

The real estate and construction sectors, alongside government, are among the most critical custodians of the built environment. Every day, our industry makes decisions about what gets built, for whom, and the form and function of amenities and spaces. These decisions carry the obligation to ensure that what gets built serves all citizens.

When the property sector—both public and private—is inclusive, it follows that it is more likely to create inclusive built environments.

Female leadership is nothing new; history is replete with examples from Egyptian pharaohs to English queens.

Here in our high-performance, outcomes-driven environment at Cushman & Wakefield, four of eight divisions are women-led.

Yet, in general, male leaders have historically outnumbered female leaders and still do today.

Overcoming systemic challenges

This is despite the proven advantages of gender-diverse leadership. Studies on private firms highlight that managerial gender diversity is linked to positive performance outcomes, among other benefits.

There is also no shortage of skilled, qualified, and ambitious women. Women have made significant progress in education and the workplace.

Taken together, it indicates a systemic challenge that needs to be overcome.

Inclusive real estate for inclusive cities

Inclusive cities rely on an inclusive real estate sector, and those real estate organisations that are diverse and inclusive are best positioned to drive more relevant, inclusive and better outcomes.

At Cushman & Wakefield | BROLL, we are proud to be in this position. We embrace the opportunity with our clients to create environments that are not just inclusive by design but are also vibrant, resilient, and reflective of the rich diversity that makes South Africa so wonderfully unique.

We also know that diversity is crucial, particularly in leadership, as gender parity benefits everyone by allowing individuals to pursue their goals regardless of gender. Leaders hold substantial influence, and including women in top leadership enables them to contribute significantly to the world and our cities.

Effective leaders pave the way for others and open doors to new opportunities. Women in the C-Suite enrich our collective culture, thought processes, strategies, and priorities. When their leadership is felt in real estate, it directly impacts our cities’ economies and the lives of their inhabitants.

Looking at South Africa’s broader national empowerment strategy, its objectives include changing the racial and gender composition of ownership and management structures of existing and new enterprises and in skilled occupations. Essentially, according to the Sanlam Transformation Gauge 2023, the intent is for economic inclusion and the business sector to broadly reflect the country’s demographics.

Women make up 51% of the population, but their representation in positions of leadership is less than 24%, with African women at less than 4%.

Focusing on the property sector specifically, the gauge notes that management control is an area where the sector has the least diversity; in fact, numbers have regressed from 39% of its target in 2021 to 32% in 2023. Black women remain the most marginalised group in management.