How climate changes will affect the real estate market
Climate change, which is the nightmare of our age, has a direct impact on human life. Climate change also affects the real estate sector, like human life. Two major real estate companies published a report on the impact of these climate changes on the real estate market.
Heirman LLC, a global multidisciplinary real estate organization, Urban Land Institute (ULI) and a global real estate investment management firm, published a report on the Impact of Climate Change on Real Estate to better understand Investment Risk Assessment Practices. The report, which is published at the European Conference in London, is based on the views of more than 25 investors and investment managers in Europe, North America and Asia Pacific, as well as from current research.
“Understanding and mitigating climate risk is a complex and evolving challenge for real estate investors,” said ULI Global Chief Executive Officer W. Edward Walter. “Risks such as sea-level rise and heat stress will increasingly highlight the vulnerability not only of individual assets and locations, but of entire metropolitan areas. This report shows that Heitman and other leading ULI members are prioritizing this issue with provocative approaches to better gauge and develop mitigation strategies. Building for resilience, on a portfolio, property and citywide basis, is paramount to staying competitive. Factoring in climate risk is becoming the new normal for our industry.”
“Opportunities are emerging across the real estate industry for investment managers and investors to better assess climate risk and navigate the potential impacts of climate change on assets and portfolios,” said Maury Tognarelli, Heitman Chief Executive Officer.
He added: “More accurate, forward-looking data on the risks associated with climate change are becoming available, positioning the industry to incorporate climate risks into how investments are underwritten and portfolios constructed. Ultimately, we hope this report will spur discussion among real estate industry participants with the end-goal of improving the investment outcomes for our clients and constituents.”
Sevdenur Demir / [email protected]