Real Estate Role in Climate Change


Real Estate Role in Climate Change is a Mutual collaboration of owners, developers, and investors plays a major role in the enhancement of atmosphere, exceeding greenery expectations of clients, and getting a more sustainable place. However, to flatten the climate curve, reduction of carbon emissions and green intentions required a well-planned approach to unlock the value behind these goals.

Over the decades, much attention has been focused on the atmospheric effects of rising levels of climate change greenhouse gases such as Carbon dioxide and methane because of human unusual activities. From time-to-time researchers investigated and analyzed the potential significance of the increased greenhouse gas concentration.

Before moving to the Term, what is Climate Change and what are the causes and how to control it, is more important.

Climate Change

Any atmospheric change over time due to human activity or due to natural variability is Climate Change. What are human activities and what are the examples of natural variability has been stated below:

Human Activities

Transportation, Industries, urbanization, Animal digestion, manure, soil management, Deforestation, upsetting grassland, and croplands are all related to human concerns.

Natural Causes

Natural causes might change the atmosphere, but these changes are not harmful or against or earth’s nature. Changes in Earth’s orbit, solar variation, internal climate variability, and ocean currents can cause climate change.


The word as the simplest term can be defined as bringing social change which allows humans to achieve human potential. But here, we are talking about property or construction developments and their role in climate change. So, the term development is a process that involves changes or land intensification to produce buildings. The whole process contains commercial or residential activity.

Real estate is beyond an ethical cause in the context of weaving sustainability as for investment, it is long term. Although, property developments are complex, lengthy, often time taking place over a time frame, but it is unique in the term of physical characteristics as well as in its location. Moreover, no other process involves such a great interest under the public interest.

Specifically talking about commercial projects that contain industries, retail shops, and offices for about 80% of the market. In this 80% of the projects more than half have been rented to tenants by landlords getting very good returns on their investment. However, evaluation consists of mutual advice of both the professional developer’s team and the property advisors to proceed with the decision for taking and bearing the risk.

The important factor that changes and molds the developer’s decision is the evaluation stage which also influences the investor’s decision.

Importance of Developments

Development’s availabilities play a vital role are directly linked to the wider economy. Developments are important in both the specific and general way of the economy for developers. In a specific way, the economy helps the individual to determine the local market strategies and opportunities for a person. However, the general level of the property, market strategies, and current conditions affect the economy in a wider way.

Environmental Impact

Highly populated and built-up areas can cause a heat-up island effect, in this scenario land developments can help and force the wildlife to relocate their habitat which would be ultimately helpful in changing the atmosphere and ecosystem. Moreover, developed lands have a positive impact on the environment at the same time.

Energy Productions

Newly advanced constructions and the well-educated community preferred to live in an advanced way of life. Given these thoughts, most developments and buildings come up with self-sufficient energy in the forms of Solar Panel installation, etc.

Energy Consumption

Society’s offers Raw Material Collection Services

Raw Material can be recycled and useful after the refinery procedure. According to research, raw material used by a family in a single day is equal to the quantity contains in a bathtub.

An analysis report on the global environment shows that extractions production contains seven metals of iron, copper, zinc, lead, nickel, manganese, and building material concrete, sand which affects air, water, and land.

Those societies providing the facilities to collect Raw Materials not just to save resident’s time but also to protect the land from pollution.

Real Estate Drive Innovation

Over time and with an increase in global warming real estate workers adopted new practices to overcome the greenhouse emission effects. A group of people stated it customers and investors requirements although whatever is the reason was, positive and advancement must be coded and to be conveyed to others as a good initiative. Talking about customers they have been driving a push to consider the ESG (Environmental, Social, and Governance) or sustainability.

After that, investors, customers, and landlords are demanding the construction and the infrastructure of the building in such a way that decreases exposure to ESG costs including energy.

Reduce exposure to ESG (Environmental Social Governance) not only can decrease their financial costs but low exposure of ESG also create a safe environment and safe workspace addressing social issues.

Real Estate Role in Climate Change

If we talk about sustainability or ESG (Environmental Social Governance) real estate holds many concerns related to ESG to overcome the issues. Few among them are zero net carbon output, to adopt renewable, and efficient energy.

The role of real estate in the Climate Change is not only limited to a physical building but health, social sustainability, inclusion, and diversity. Employees and customers also demand to reflect their values by knowing the mission, purpose, and culture of the place they work or live that make them feel proud.

Risk and Opportunities

Knowingly many reasons can change climate change among one of them is a temperature that increases dramatically sometimes. Ultimately, high temperatures can change the earth’s surface in the form of more floods, droughts, rain, and frequent heatwaves.

Following are the Real Estate ‘s opportunities:

  • Often use of renewable energy and improvements in energy efficiency
  • Increase of water efficiency
  • Increase in awareness campaigns of Education, Advanced mode of Development, and financial resources
  • Overall work opportunities and work flexibility for women

Effects of Climate Change VS Prices

Differences in beliefs regarding climate change ultimately affect house prices. Energy overconsumption and greenhouse gas emission are responsible for creating social and economic threats (global warming cause high ocean temperature which disrupts water cycle and causes floods and storm). Back in 2017, U.S. has been damaged by extreme weather costing $300 billion. These reasons are significant to ignore but for the developers, owners, and investors, now is the time to contribute and take their part intangible changes.

For the sake of reducing energy consumption and operating costs, the smart building idea has been born and generated from the movement (Leadership in Energy and Environmental Design) of the late 1900s had the concept of friendly and sustainable buildings.

Mindset Shift

As we heard and read that, “success is all because of you not to you” in the same way once we get to move on then our upcoming step is more important and worthy than the previous or the last one.

The more carbon in the atmosphere, the warmer the planet would be. Not only atmospheric effects are caused by carbon, but dizziness, headache, and restlessness are the carbon effects in humans as well.

The real estate industry is like the limelight for the future. Without the mutual collaboration of clients, investors, and developers as well as the renovation of buildings, zero building is not possible. Mutual collaboration of our society can be considered as our response to the future and the world. But for the said purpose and to achieve that goal require a mindset shift and much collaboration between owners and investors.

Effects of Climate Catastrophes on Real Estate in Pakistan

The autonomous country that occupies South Asia with a variety of landscapes is one of the most severely hit countries in the world by the process of global warming. Following manners is the climate effects caused by global warming:

  • Melting of Glaciers
  • Droughts and
  • Recutting Floods

Effects of Climate Catastrophes on Real Estate in Pakistan

Pakistan has been crippled by the process of global warming which is already a resource-stressed country. Unfortunately, the urban planner of the country failed to plan a safe and secure environment for us. But still have an attractive force to catch and move the poor from rural to urban areas. The Christian Science Monitor reported that the floods had affected up to 12 million people, destroyed 600,000 homes, and killed more than 1600 residents. For the guidance of the developers, Pakistan provincial capital has no master plan.


An increase in global warming causes an increased frequency of extreme weather events which will stance significant risk to real estate in the future. Specifically, long summer heat waves stretch the capacity of the building, increase utility costs, and extended periods of drought restrict water usage of the building.

Real Estate Role in Climate Change plays major role While working in the real estate industries should join hands together for the contemplation and quantification of climate risks. Only a well-educated community and a research-based team will agree and come together on the focusing point in response to undefined Constructions and growing crises.

The green building consists of a planned structure, design, construction, operation while reducing landfill waste.


Leave a Reply

Open chat