Real estate sector faces challenges from climate change and heatwaves

The real estate industry is increasingly focused on ensuring housing and workspace habitability in response to rising temperatures and frequent heatwaves. In collective buildings, installing air conditioning systems has become a way to improve resident comfort, mitigate heatwave risks, and increase property value. While split systems work for individual units, centralized solutions are better suited for larger complexes. However, installations that modify building facades require co-ownership approval and adherence to specific regulations.

Climate change is also impacting financial metrics, with the climate risk premium now reaching 45 basis points annually for European real estate yields. To combat these challenges, developers are implementing bioclimatic solutions and rethinking facade architecture. On a larger scale, the European Investment Bank (EIB) has announced it will double its climate adaptation funding, allocating 30 billion euros over the next five years to support these transitions.