Waterfront real estate confronts new climate realities
Flood risk from climate change to wreak havoc on thousands of properties with REITs
Coastal and waterfront real estate will bear the brunt of new climate realities over the next few decades, leading researchers say.
Around 35 percent of properties owned by real estate investment trusts (REITs) are geographically at risk for climate hazards, CNBC reported, citing a 2018 report by analytics firm Four Twenty Seven and proptech company GeoPhy.
These hazards, which include flooding, elevated sea levels, and cyclones, may affect more than 25,700 properties under REITs.
The report evaluated 321 REITs, representing 73,500 properties.
More: Cebu set for wave of new condos by 2021
“I see elevated risk when it comes to REITs that might be overexposed in areas that are close to sea level and coastal,” Andre Shepley, product manager and research team leader at Truvalue Labs, a provider of sustainability data analytics, told CNBC.
Meanwhile, the Union of Concerned Scientists expects around 300,000 residential and commercial properties in the US to face chronic and disruptive flood risk by 2045, noted Curbed.
Rising seas and flooding will likely cause USD135 billion in property damage and force 280,000 Americans to adapt or relocate by then, the scientists predicted.
Environmental, social and governance (ESG) strategies in REITs are growing in acknowledgment of the rising threat of global warming. ESG property funds and real estate investment trusts numbered around 108 last year, representing USD272.4 billion in assets, CNBC reported.
Recommended
Meet the vagabond architect behind India’s housing scene
Vinu Daniel is helping to shake up India’s home building setting
Where Asian real estate stands in a fragmented, warmer world
Asia’s real estate industry faces many and varied challenges as external factors continue to bite
6 sights to see in Singapore’s Marine Parade
Handily located Marine Parade has emerged as a vibrant investment choice in the Lion City
There’s a township dedicated to health and wellness in Malaysia
Property seekers have their health needs catered for at KL Wellness City