How has climate change impacted the real estate industry?

Sheela Kumar

We have seen a massive change in climate in the last 10-15 years which has impacted our environment very badly. The increase in pollution worldwide has adversely affected the climate of the entire world which is a sign of caution for humans. The extreme rise in population in the last few years have caused the demand of natural resources to rise drastically causing a huge impact in the climatic conditions. Climate change has impacted countries of varied climates and there are hardly any places left in the world which have no pollution or where people can spend some time in peace. Purchasing gated community villas in Coonoor is although still a good choice as cities like Coonoor and Ooty are still free from adverse climate change.

How did the Tsunami give a reality check?

People living in coastal regions were always under the risk of high tides earlier until they experienced a tsunami which proved to be a mass destructor. Tsunami not only killed people but destroyed their properties in large volumes especially those residing close to the sea. This was definitely a reality check for the real estate investors who always wanted a property in the sea shores but were totally unaware of the disaster that the Tsunami could bring. Now, most of the people in the coastal areas are hesitant to buy or even rent a property because of the severe climate change that introduced Tsunami to us

Coastal cities under a danger of submersion

Again due to severe climatic change in the world, most of the coastal cities have been in danger of being submerged in the sea if water level rises. We all know that climate change is responsible for the rise in the water level across the world and this has imposed another threat apart from Tsunami to the coastal cities. This has become another reason why people have started to avoid purchasing properties in the coastal cities. Countries like Indonesia have already started to move backwards from the coastal cities because of the threat of being submerged.

Coastal People moving back

When concerns about safety in coastal cities grow, it is logical to assume that people will relocate to inner regions, which are seen as safer zones. People are considering moving to safer locations where the problem is minor, if not totally neutralised, as they consider different situations when the living place itself is at risk. The speed of the exodus is anticipated to quicken as public awareness of the threat posed by sea level rise grows. When individuals opt to move in, they choose to search for Tier 2 cities near the coastal cities or Metro suburbs that have decent quality of living without much of a sacrifice in the facilities offered.

Real estate sector in hill stations

Rich people in our country generally believe that moving to hill stations for a brief period of time at a higher altitude region would be the ideal choice for house owners. The trend has already started on the west coast. The people of Chennai are also reviving their quest for houses in Tamilnadu's hill stations like Conoor and Ooty. They no longer view a home in a hill station as a social status but rather as a safe place to live in. This clearly shows that real estate in hills station is still unaffected by the threats of Tsunami and submersion which is a good sign. This is the reason while most of the coastal cities and countries have seena  sharp decline in the sales of properties, hills station properties are still in high demand.

Sheela Kumar
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