Progressing climate change has become a worldwide challenge. Key greenhouse gas emitters are construction, transport, and manufacturing sectors. Climate change has increased the incidences of extreme weather occurrences which may cause impairment to human life, health properties, economy, environment, and culture. Real estate sector is exposed to a combination of threats caused by climate change-the form and intensity depends on location and specificity of ecological condition. Incidences threatening the real estate sector are illustrated below:
There is a peculiar relationship between construction activity and climate risk. In the first place, it is the rampant clearance of mangroves, salt pans, and green zones, and the cropping of cemented structures thereon, that leads to the spike in temperature and the depletion of oxygen levels in the air.
Yet, construction activity must go on to accommodate the huge urban influx of blue- and white-collar workforces. The goal then is to minimise the impact or construction activity on climate and vice versa, through a series of well-thought out policy initiatives which may inter alia include:
Implementing these initiatives will reduce climate inflicted losses, boost real estate performance and develop infrastructure which is positive for social and economic growth of the society.
Besides the adverse effect of climate change, there are also prospects for the real estate sector triggered by the climate change, such as developing invention in solar heating and current insulation, upgraded access to latest technology solutions at lower costs, developing and enhancing expertise in the areas of sustainable water management, rain water harvesting, reduced water consummation for watering plans, reduced waste water, sewage management better heating and cooling systems, condensed energy demand in hot season – proper shading, blinds, abridged light diffusion etc.; lower investment in energy grid, supply of power at reduced price; expansion of green infrastructure and development of environmentally friendly infrastructure which offers leisure opportunities’ e.g. cycling and walking tracks, parks thereby improving the overall aesthetics, quality of life and allure of cities to its residents;
Irrespective of climate change vulnerability faced by the real estate sector, the role and relevance of real estate sector in advancing innovation, adopting new technologies will not only improve the resilience of cities, but also increase the attractiveness and competitiveness of real estate and the demand for it.
This article was originally published in The Times of India on 4 May 2022 Written by: Ashoo Gupta, Partner. Click here for original article
This is intended for general information purposes only. The views and opinions expressed in this article are those of the author/authors and does not necessarily reflect the views of the firm.
The Bar Council of India does not permit solicitation of work and advertising by legal practitioners and advocates. By accessing the Shardul Amarchand Mangaldas & Co. website (our website), the user acknowledges that: