Where, When and How Does the Real Estate Market Face Climate Change?

Across the years, environmental consequences deriving from climate change and disruptive natural catastrophes are taking the lead in the governments’ agenda in order to mitigate the effect of environmental degradation. In this framework, the so called “climate risk” and its implication on financial markets are, basically, the object of a huge analysis and increasing interest of financial market players and in particular academics and practitioners has paid deep attention to the climate change implication on real estate market, conceived as one of the most affected from climate risk. In this scenario, this work aims at exploring the relationship between the volatility in weather-related patterns across the time and its implication in real estate returns, taking into account the existing gap between national real estate markets. The ambitious goals of this research are to provide a contribution to the existing literature on the hot debate towards the aforementioned relation and its implication on an investor perspective and to evaluate practices which allow to consider differences in that impact across different time horizons.