Philibert Weenink

Natural disasters pose a significant threat to real assets and the financial wealth of their owners. Recent examples include the Valencia floods in 2024 (causing around $18 billion in direct damages) and the LA wildfires in 2025 (causing around $31 billion in direct damages). However, direct damage is only part of the story. To understand

How adaptation can preserve property values Real estate's fixed characteristics make it less adaptable to environmental threats. Extensive literature shows that real estate markets factor in climate risks, as buyers often seek discounts to offset potential future property damage (Clayton et al. 2021). At the same time, more brokers and platforms like CoStar and Redfin