'Climate change is affecting real estate.'

Climate change is dramatically altering the world, and one industry that is literally feeling it is real estate. Cyprus is coping with the effects of climate change by forcing local stakeholders to adapt to new challenges and accept the rules dictated by environmental changes.

The Association of Cyprus Property Appraisers is organizing a seminar in Nicosia on December 8 to proactively address the evolving climate situation. The seminar looks at how environmental, social and corporate responsibility policies will shape the future of the valuation profession, focusing on the challenges facing the real estate sector due to change''climate.

One of the industry's major challenges is the increasing threats posed by climate change, which in turn affects construction costs and potential buyers. Miscalculating rising costs creates difficulties in securing finance and adds complexity to a dynamic market.

The risks of coastal real estate

While the risks of rising sea levels and temperatures may seem like a scenario from a distant or dystopian future, the potential damage to Cypriot cities, especially coastal ones, cannot be ignored. Coastal real estate faces increased risks from rising sea levels due to melting glaciers and ice caps, forcing investors and property owners to grapple with the threat of more frequent and''vulnerability to extreme weather is gaining popularity, leading to the emergence of climate-sensitive real estate markets.

Environmental compliance

Global focus on carbon emissions has led to the introduction of taxes and fines for non-compliant landlords. EU carbon neutrality regulations also mandate the adoption of green building policies in the construction industry, which affects a significant proportion of energy consumption and greenhouse gas emissions. This move towards energy efficiency and carbon neutrality is impacting real estate in Cyprus and Greece, especially aging buildings that require energy upgrades. If new''regulations are introduced in legislation, then from 2028 all new buildings must be zero carbon. The newest buildings must be fitted with solar technology and use energy-saving measures in major renovations. This requirement reflects growing demand from climate conscious consumers.

Take climate solutions

Monitoring these changes is critical for real estate professionals to''more accurately assess the climate risks associated with their real estate portfolios. Despite their complexities, energy efficiency provisions also present opportunities for real estate investors. Real estate suitable for solar and wind energy is gaining value, opening the door to partnering with renewable energy companies to create integrated green communities. Surveys have also shown that despite higher initial construction costs, energy costs can be reduced by 20%-40%, water consumption by 10%-30% and maintenance costs by 10%-15% (which can reduce operating costs by up to 20%). This makes it possible to pay higher rents of 10-20% po''compared to a conventional building.

The real estate sector in Cyprus is at the forefront of climate change, which requires adaptation for long-term sustainability. Together with increasing costs and challenges, adopting green practices in construction and incorporating climate resilience into developments offer pathways to sustainable solutions that will shape the future market in Cyprus and around the world.

Seminar "Cyprus and Greece Real Estate Market - Modern Approaches to Valuation "

The seminar of the Association of Cyprus Real Estate Valuers will be held on December 8, 2023 at the Altamira headquarters in Latium in Nicosia. The Association has prepared an extensive presentation on modern valuation techniques and current trends in the real estate market, which will''will be accompanied by presentations by prominent experts in the field. The seminar is sponsored by Financial Mirror.

The cost of attendance is €60 for Association members who have paid their 2023 liability. For non-members the cost is €100. Payment can only be made via the JCC website.