aalto1 untyped-item.component.html
Perceptions of climate risks in professional real estate valuations: investor and valuer perspectives in the Finnish market
Loading...
URL
Journal Title
Journal ISSN
Volume Title
School of Engineering |
Master's thesis
Electronic archive copy is available via Aalto Thesis Database.
Authors
Date
Department
Major/Subject
Mcode
Degree programme
Language
en
Pages
65
Series
Abstract
This thesis explores the role of climate risks in professional real estate investing and valuation in Finland. The topic has received limited prior attention with a lack of academic research focused on the professional real estate market, particularly in the Finnish context. The thesis comprises of a literature review and a Modified Delphi Approach empirical questionnaire. The literature review analyzes existing research on climate risks in real estate investing, while the empirical questionnaire investigates how these risks are perceived and incorporated into real estate valuation practices by Finnish market professionals.
The findings show a growing awareness of climate risks within both internationally and within the Finnish professional real estate market. However, the findings highlight significant challenges in incorporating these risks into real estate valuations due to limited data, lack of standardized tools and methods together with the uncertainty surrounding future development of the risk environment. Particularly the financial impacts of physical risks, such as changing precipitation patterns and flood risks, were viewed as difficult to assess. In addition, the results show differing perceptions between investors and valuers regarding the severity of climate risk impacts.
This thesis provides a foundational perspective on the role and influence of climate risks in the Finnish professional real estate market. It offers a basis for future research, especially concerning the quantification of financial climate risk impacts and the development of assessment tools.