Climate Risks And Its Implications On Real Estate Investment In Edo State, Nigeria

Climate change and its associated impact on the environment has been a topical issue globally. Considering the “E” of the Environment, Social, Governance (ESG), building climate intelligence is central to value creation and strategic differenation in the real estate industry. This study therefore examines the perception of real estate professionals on the risks of climate change and its effect on real estate investment in Edo State, Nigeria. Structured questionnaires were purposively administered to 75 selected Estate Surveyors and Valuers in Benin Metropolis while all retrieved questionnaires were found suitable for analysis. Descriptive statistics was employed to analyze the data collected from the respondents. The results depicted that more frequent and intense extreme weather events, extreme rainfall, gradually changing climate (e.g., temperature, precipitation), flooding, and rising fuel prices were the most perceived risks of climate change in the study area. Furthermore, higher construction cost (due to adaptation), infrastructural damage, health hazard, loss of income, deterioration, reduction in property life span, increase in maintenance cost, and obsolescence were the perceived effects of climate change on real estate investment. It is therefore imperative for real estate players (such as investors, professionals, regulatory bodies etc.) to understand the climate risks (both physical and transition) in real estate market and adopt a mitigative strategies (such as green building initiave) to avert the effects on real estate investment in Nigeria.