17:03 10 April 2025
Climate change is changing commercial real estate, investors facing challenges
Between 2021 and 2023, climate-related losses in the EU exceeded €163 billion. According to CBRE, climate change increasingly affects real estate cash flows, rental rates, vacancy levels, and financing access. Rising costs for building management, repairs, and insurance are major concerns. In high-risk areas, securing investment loans is becoming more difficult and expensive. Only 10% of climate-related losses across the EU are insured.
Poland fares better, with most losses from 1980–2023 covered. In contrast, Germany and Italy face large insurance gaps. Climate risks are also reshaping tenant priorities—40% of companies now consider them when choosing office locations. As a result, building climate resilience is becoming essential for the commercial real estate sector’s long-term value.
