Climate change could make Dutch house prices fall by 10 percent
A real estate research group has found that climate change could lead to a 10 percent drop in house prices across the Netherlands, as its effects induce flooding and foundation damage. Calcasa, an organisation that provides valuations and analysis of the Dutch property market, said that climate change could lead to losses of around 325 billion euros.
Flooding, earthquakes and foundation damage cause problems in the Netherlands
Some of the issues that will be worsened by the effects of climate change relate to water management. As you will likely know, since the Netherlands sits at a low level in relation to the sea, flood defences, dykes and dams are all used to protect Dutch people and property from sea flooding and water level rises in canals and rivers.
Despite this, climate change will still see flooding increase throughout the country, and the rising water level can lead to property damage underneath structures as well. According to a separate report released by financial services watchdog AFM in early November, future house prices should take into account the effects of climate change, given that the cost of repairs for flooding or other climate-change-related problems could be up to 100.000 euros per property.
Another concern held by the valuation service Calcasa is that earthquakes, such as those seen in the towns and villages surrounding Groningen where gas extraction was previously taking place, could also become more important in the valuation of houses. For homes built in regions in the north and the south where earthquakes are active, sellers could be seeing lower prices for their property in the future.
Flooding could affect 3,7 million Dutch homes
According to Calcasa, flooding caused by rising sea levels, high water levels in rivers and heavy rainfall could affect up to 3,7 million Dutch homes. Given that the population of the Netherlands is 17,5 million, that’s a significant proportion of the country that could see their most valuable possessions washed away.
Another problem that surrounds Dutch houses is the potential for wildfires, where 28.000 homes are flagged by Calcasa as being “at risk”. A further 1,6 million homes are recorded as being in earthquake zones, and according to a separate report by homeowners’ association VEH, there are also 8 million homes that need their foundations to be repaired, restored or replaced.