All around the world, people are being affected by climate change. It's not only the people that are affected by it, though. The Conversation reported that efforts have been made to reduce various greenhouse gas and carbon emissions. Real estate is also being retrofitted to accommodate the improvements; if not, then they stand to become obsolete.
Real estate in the world has become compliant with green policies. Nations like the UK have promised to reduce greenhouse emissions to zero by 2050.
The chancellor of the exchequer, Philip Hammond, has said that this may be unaffordable, with estimates pointing towards the transition being a costly process, which could go all the way up to £1 trillion.
The cost will affect more than just real estate. There is a significant amount of public money spent on the transition to renewable energy, as well as the shift from carbon fuel. The costs of the assets which will become obsolete due to the policy will be huge, as unexploited fossil fuel reserves cost that much when developed and processed.
Climate change will definitely change things, but in the real estate world and for the greater part of the population, it's for the better. Forbes reported that climate change accords have definitely created better designs and resilient construction. Climate-resiliency has also given rise to buildings that can withstand the weather, as they are today.
Designing building to be resilient is not cheap, however. Buildings have already suffered $300 billion in residential and commercial real estate damage since 2017. Most of them were bought upon by natural disasters. Major cities that are near the coastline are in danger of having most of their real estate rendered useless by damage.
Investors have started to explore how to include these climate resiliency strategies by including seawalls and increasing elevation. However, an at-risk market often adds a certain extra to the price of buildings and communes.
Climate proof building will, however, be worth it in the long run, especially ones that have been made 'green', according to analysis.
With the world as it is, there's no telling how much more expensive buildings may become.
It's a good thing to safeguard real estate today so that they might be disrupted only by innovation, and not by calamities that arise from the natural progression of the world's weather. It is only natural that real estate property owners will find ways to secure their investments.
