The Impact of Climate Change on Real Estate: How PropTech Can Help Mitigate Negative Consequences
Climate change will indefinitely have a profound impact on the built environment, and this will have a serious flow-on effect on society. Furthermore, it is important to explore the physical and financial implications it will have on the real estate sector and how a range of PropTech solutions could rectify these grave consequences.
Throughout various parts of the world, communities are continually being hit with storms, floods, and droughts at an accelerating rate. The idea of weather patterns losing control and increasing in volatility leaves us lost with an array of pain points and vulnerabilities to address. These include water supply, agriculture, transportation, and the production of electricity. These impacts will not only inflict significant costs on the livelihoods of people and their businesses, but government bodies too. Therefore, there is a global demand to mitigate the flow of greenhouse gases into the earth’s atmosphere that must be tackled on a local scale.
• Real estate’s global impact
It is estimated that almost 40% of global carbon dioxide emissions emerge from the real estate industry, with a majority of that being produced by building operations. Construction is known for its reliance on steel and cement, which eats up the planet’s natural resources, along with excessive energy consumption. This calls for a dual responsibility amongst real estate investors – to continue making profits whilst implementing strategies to hit sustainability targets.
• What investors can do to adapt and mitigate climate change
As a means of reducing the need to turn to traditional building materials such as steel and concrete, many industry professionals are now recommending timber as a viable alternative. This can strongly be seen as a structure of the future, mainly because wood, in general, has been utilised by humankind throughout history. It is integral to everything that came after it. When it is directly put up against other commercial building methods, it has the lowest environmental cost. It has a natural thermal insulation effect, meaning that homes would require less energy to consume on indoor heating. Wood’s lighter weight can also result in a reduced use of transport across roads, railways, oceans and air. Did we also mention that this method is completely biodegradable?
• Where PropTech comes into play
PropTech solutions have become an integral factor in producing high-quality properties that are catered to improving the quality of lives. But on top of that, property technology is seen as a driver for ecological change. Developers and residents in general tend to underestimate the day-to-day interactions they have indoors and the various impacts they have on the environment. For example, the consumption of energy through lights, devices and appliances, water usage, indoor air pollution and waste generation. There are many green and readily developed technologies that exist to reduce the excessive application of these activities. The first would be Building Information Modeling (BIM), the holistic process of creating and managing information on what needs to be constructed to maintain efficiency. The management of data during the design and construction phases of operations helps pave the way for better decision-making and results in a decrease in energy consumption. It achieves this by intuitively building the geometrics of a plot whilst answering complex questions around expected energy usage, and thereby ways to save money.
Furthermore, PropTech solutions can mitigate the levels of carbon dioxide in the indoor air of buildings, and thereby improve the health and wellbeing of its occupants. For example, developers can have cost-efficient smart lighting systems put in their buildings for enhanced user comfort, convenience and security. As a result, the overconsumption of energy can be positively combatted. In terms of water conservation, smart technologies have been developed to track consumption and identify where the resident can minimise waste to save money. These monitoring systems can offer a lot of transparency around water usage, and potentially open the eyes of many who have never taken accountability for overusing this depleting resource. Smart ventilation systems have also proven to be an incredibly intelligent and self-sufficient way to consume energy. This can be beneficial for the owner who would like to receive a data analysis of energy expenditure. Implementing this is especially useful amongst older buildings that still have manual HVAC controls.
Homebuyers continue to enjoy the smoothness of a cost-efficient interior whilst still preserving the elegance and craftsmanship of an old property. Hence, these Innovative solutions can help bring the refurb projects and new builds alike that homebuyers can’t seem to get enough of. Buildings are the foundation of a greener future, so converting to a smart home should be a top priority. The affordability, ease and practicality of the aforementioned digital tools would certainly accelerate the transition and act as a widespread incentive to adopt.
• What Spaciable’s digital handover solution brings to the table
Spaciable’s digital handover process is slick, convenient and encourages collaboration with its highly accessible portal that keeps every accumulated document in one place. Stakeholders can share and access important information, saving immense amounts of time in their efforts around communication and travel. To enhance this even further, the online portal has a VR home tour feature that is constantly updating with new CGI walkthroughs, saving air miles for potential overseas buyers.
Second to timesaving, there is the elimination of the need for paper. By putting a lot of reliance on technology, the impacts on manufacture and disposal are struck out completely.
On-demand access to energy-saving advice, through incorporated content and FAQ’s is also a key feature of the portal. This provides a deeper experience with the user and breaks through barriers of trust by solving common issues around the property. The local area guide will share fascinating insights into locations and provide users with knowledge of their surroundings. It depicts a range of leisure activities and shopping destinations for the user on a platform that is very engaging and user-friendly.
Lastly, Spaciable’s highly effective defect reporting tool can streamline the process, enabling users to resolve issues in a short period of time. The tool helps track the progress of each issue, ensuring that nothing falls through the cracks. This reduces costs with rework and recalls, and prevents users from putting their hard hats on and giving handy work a crack themselves! This will not only save time but help maintain a positive reputation for the company. Most importantly, it is used to promote a safe and efficient working environment, making it a valuable tool that should not be overlooked.