Climate Change Has Adverse Impact On Real Estate
Climate change is adversely impacting real estate transactions and investors are expected to closely examine the financial implications of climate risk on their assets, says a survey by real asset sustainability consultancy Evora. Its annual ‘Insights Into Real Estate Investment Sustainability Survey’ found that 46 per cent of real estate investors have witnessed the impact of extreme weather on their investments. Climate risks mean that some are experiencing a fall in property values, income, and occupancy rates and face rising insurance costs, prompting real estate investors to wake up to the fact that climate change is happening and is affecting their assets. These risks include the extreme heat across Europe last summer and floods and storms becoming very common in many parts of the world. When assessing value, investors need to consider future changes that could undermine historical market comparables data as there are climate risk factors which could accelerate how climate change affects value.