Climate-Resilient Real Estate and Infrastructure: From Global Trends to Local Reflections
Climate change is no longer a forecast for the future; it is one of the most critical realities of the present. Rising temperatures, sea-level rise, floods, droughts, and wildfires—extreme climate events—affect all aspects of life, not only environmentally but also socially, economically, and structurally. This shift represents a profound transformation, especially for the real estate and infrastructure sectors. Today, design and financing processes are determined not only by aesthetics or cost but also by climate resilience, sustainable material use, environmental impact reduction, and long-term adaptation planning.
It is not only residential and commercial projects that are affected; holistic urban design, transportation systems, energy infrastructure, and waste management are all part of this transformation. The new generation of urban planning requires a structure that accounts for climate risks at every level, prioritizes environmental sensitivity, and is based on data-driven decision-making processes. According to the 2020 study by McKinsey Global Institute, climate change could threaten 1% to 4% of global GDP by 2030. Cities near sea level, metropolises with intense urban heat island effects, and areas with low infrastructure resilience are particularly at the center of this risk.
In this article, we will examine, based on comprehensive local and global reports published between 2021–2025, how the real estate and infrastructure sectors are reshaping themselves in response to climate risks, how private sector and policymakers are positioning themselves in this area, and to what extent developing countries like Turkey are following this process. We will also analyze how progress or shifts in direction have occurred over time.
The New Real Estate Reality Shaped by the Climate Crisis
According to the “Climate-Related Risk Data Report” published by Willis Towers Watson (WTW) in 2021, confronting climate-related risks in real estate and infrastructure investments has become inevitable. The report emphasizes that risks are not limited to physical damage caused by extreme weather events but also lead to significant changes in valuation, insurance, and investment behavior.
In this context, the 2023 report “Climate Risk and the Opportunity for Real Estate” prepared by WTW and the World Business Council for Sustainable Development (WBCSD) examines the risks facing the real estate sector under four main headings:
- Physical Risks: Increased temperatures, floods, fires, and storms directly threaten structural safety.
- Transition Risks: Changes in costs due to climate policies, carbon taxes, and green certification systems.
- Reputation Risks: Projects that fail to meet environmental sustainability standards lose value in the eyes of investors.
- Market Risks: Decreased demand for residential and commercial properties in areas with low climate security.
Despite these risks, reports also point to significant opportunities. Buildings developed in line with net-zero targets, energy-efficient systems, and green infrastructure offer higher returns to investors over the long term. The IPCC’s Sixth Assessment Report (2023) scientifically supports this view. According to the report, vulnerability to climate events arises not only from infrastructure deficiencies but also from a lack of comprehensive forward-looking adaptation plans.
Additionally, the 2024 Carbon Disclosure Project (CDP) report indicates that 80% of major cities worldwide have experienced economic losses due to extreme weather events. It is estimated that these losses exceeded $300 billion in 2023 alone. In such a context, investments that ignore climate risks are clearly far from long-term sustainability. Moreover, these investments may face higher insurance premiums and devaluation in the eyes of investors.
Private Sector Adaptation: From Risk to Value
It is no longer sufficient to limit the effects of climate change to public policies. UND’s 2023–2025 Private Sector Strategy and the report “Pathways to Climate Resilient Net-Zero Supply Chains” clearly outline the private sector’s role in this transformation. These documents emphasize that private sector actors must not only reduce emissions but also develop strategies to enhance organizational, financial, and physical resilience against climate shocks.
For real estate projects, this raises questions such as:
- Is a building constructed to withstand future climate conditions?
- Are the materials used sustainable and durable?
- What is the climate risk score of the project’s location?
- Does the financing structure account for these risks?
Especially within supply chains, zero-carbon targets require re-evaluation of sustainable material procurement, logistics planning, and production processes. UNDP reports indicate that reducing carbon footprint alone is insufficient; developing adaptive solutions also increases corporate value in the eyes of investors.
Furthermore, analyses such as the Real-Estate Sector Risks Briefing (2023) show that investors now consider long-term climate risks in projects. Climate resilience is perceived not merely as a certification issue but as an integral part of corporate reputation, sustainable revenue, and social impact management.
OECD’s 2024 report “Infrastructure for Climate Action” also supports this approach. According to the report, over 60% of infrastructure investments in each country are still planned without integrating climate risks. If reversed, both carbon emissions could be reduced, and climate-related economic losses could be cut by up to 40%.
Local Resilience through Data-Driven Decisions: Reflections from Turkey
The 2024 report “Smart Cities: Journey to a Sustainable Future with Technology” by the Ankara Chamber of Industry highlights the need to create a strategic roadmap for climate resilience in Turkey. The report emphasizes that urban digitalization processes, development of data infrastructures, and decision-making mechanisms must be based on scientific principles.
Similar approaches exist in UNDP Turkey’s local-scale projects. Climate resilience projects conducted with municipalities aim to develop sustainable urban policies, conduct climate risk scoring, and create financing models in cooperation with the private sector. Additionally, frameworks such as the Paris Climate Agreement and the Green Deal Action Plan provide guidance for sustainable investments and practices. Accordingly, the 2024 Turkey National Energy Plan also aims to establish long-term financing mechanisms for green infrastructure projects.
It is noted that a data-driven planning culture is emerging in Turkey, although institutional infrastructure still requires development. Establishing open data systems with private sector support, analyzing climate risk scores at the neighborhood level, and integrating this data into planning is of critical importance.
Resilient Investments: A Requirement for the Future
Climate risk is no longer an abstract environmental issue; it is an inseparable part of investment and planning processes. For investors, city planners, and private sector representatives, climate resilience should not be limited to sustainability certifications; it must evolve into a multi-layered value system.
As demonstrated by international and local reports, resilient infrastructure projects form the foundation for a more sustainable future both economically and socially. Stronger, data-driven, and long-term perspectives on climate risk support not only environmental sustainability but also investor confidence, social stability, and corporate reputation.
It is possible not only to manage climate risk but also to turn it into a strategic advantage. Securing the future depends on shaping today’s investments with a climate-resilient, sustainable, and data-driven approach.