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With each passing year, climate change is increasingly wreaking havoc across the globe. In India, too, there has been a rise in extreme weather conditions. The figures are alarming. Hundreds of lives were lost this year alone, to heatwaves, flash floods, cyclones, landslides, and lightning. Also, in 2025, the country witnessed the highest number of climate-driven displacements in over a decade — a staggering 5.4 million people were internally displaced. Estimates suggest that by 2050, India could be home to 45 million climate migrants, almost three times the current number.
With climate risk looming large, it has become one of the most important factors to consider when buying property. In this blog, we look at how climate risk can impact real estate investments in India and what you can do to mitigate it as a buyer.
Climate risk: A grim reality
It’s not just natural disasters; climate risk in real estate includes many other factors as well. Let us take a close look.
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Weather havoc
Natural disasters are the first things that come to mind when we talk about climate risk. The list covers climate catastrophes such as cloudbursts, cyclones, floods, landslides, heatwaves and coldwaves. According to the Climate Risk Index (CRI) 2026 report, India is among the top 10 countries across the world to be affected by extreme weather events over the last 30 years. The report states that between 1995 and 2024, the country has faced around 430 natural disasters. These include floods, heat waves, landslides, droughts and cyclones. Over a billion people were affected by these incidents, which also resulted in more than 80,000 deaths and losses of around $170 billion. -
Policy changes
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Market mayhem
And it’s not just villages and small towns. Major cities like Mumbai and Bangalore reel from acute water shortages every summer and fight against severe waterlogging and flood-like situations during the monsoon season. According to studies, both cities are also experiencing losses of wetland areas, which act as natural flood buffers. How protected is an area from climate disasters? This has emerged as one of the most critical questions in real estate investment in India.
In light of our growing vulnerability to climate risk, the government has implemented many policy changes. And, as a homebuyer, it’s important to stay informed about these. For example, as per RERA, it is now mandatory for all developers and builders to declare safety and environmental risks to prospective buyers. That’s not all. Owing to the strict enforcement of Coastal Regulation Zone (CRZ) laws, there are restrictions on construction near the shore. Also, the Smart Cities mission is enabling urban centres like Bhubaneswar and Pune to develop climate‑resilient infrastructure. New building byelaws also promote eco-friendly construction, which emphasises factors like natural ventilation and energy efficiency. Before buying a property, make sure it is RERA-approved and that the area is not flood- or drought-prone.
Climate risk could adversely affect property values. For example, would you want to buy property in an area that floods every year or faces the threat of landslides? Not really, right? Predictably, there is a slow but certain shift in property demand. To cite an example, certain areas of Mumbai and Chennai, which face floods every rainy season, are not high on the popularity chart anymore.
The issue is affecting rental income, too. Reports claim that parts of Guwahati in Assam that are prone to frequent floods have seen a significant dip in demand for rental properties. In West Bengal’s Sunderbans, which is a high-risk area, many housing colonies built years ago lie abandoned, ‘flooding’ the market as stranded assets.
As a result, there is a rising demand for green buildings in India. Across the globe, too, non-green buildings are seeing a drop in value. Studies say many major investors now want to back projects with net-zero business strategies.
Points to remember
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Planning to buy a property? Here are certain aspects you should thoroughly check with regard to climate risk in real estate.
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Do a thorough check
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Insure for sure
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Calculate long-term expenses
There’s little defence that you can put up against climate disasters once you buy property in a vulnerable area. So, do a thorough check before committing. For example, is the area too low-lying, near a river or on a hillside? Or does it face water scarcity in summer? Make sure to analyse all these aspects for a hassle-free and safe experience.
House insurance is a must for everyone, and it’s even more necessary for those living in risk-prone areas. But, in recent times, climate change has made insurance and bank loans more expensive for people living in such areas. Southern coastal cities like Kochi and Thiruvananthapuram, which face a higher risk of floods, have witnessed a sharp increase in housing insurance premiums, proving to be a deterrent for many. Other reports cite how banks reject loan applications for properties in flood-affected areas of states like Bihar and Assam. Some banks even charge a higher interest rate.
In short, do not buy properties in areas with high insurance premiums. And if at all you have already invested in such properties, make sure to insure them at the earliest.
You may buy them at a lower price, but you will end up spending more on repairs and renovations over the years if you buy property in an area hit by extreme weather conditions. For example, property owners in Pondicherry often spend large amounts of money on annual maintenance. Reason: Being a coastal city, the buildings are highly susceptible to weather damage. So, choose the location wisely, no matter how tempting the offer is.
Realty Check
Climate risk is no longer a distant threat; it’s a current reality. So, if you are planning to make a real estate investment in India, ensure you thoroughly assess and evaluate before going ahead. Choose safe localities and green buildings for happy living. To know all about green building certifications in India, read this blog.
FAQs
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Share some easy tips to protect your house from monsoon damage.
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What are some of the strategies that can be implemented to flood-proof Bangalore?
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Loss of green cover is one of the major reasons for climate change. Which parts of India have witnessed maximum tree loss over the past few years?
A few regular measures can prevent monsoon damage to property. The first step is to waterproof your walls and the roof. You can have rubber gaskets installed at the base of all outdoor-facing doors — the main entrance, balconies, etc., to prevent rainwater from entering the building. Also, seal the gaps between all walls, doors, and windows. Make sure there are no exposed electrical wires, and replace heavy curtains with lighter ones to maximise sunlight. Store your heavy carpets and rugs, which absorb moisture, in a dry place. Moisture absorbers should also be placed inside wardrobes and book cabinets. You can also install a dehumidifier in your house.
Some practical steps include desilting the city’s stormwater drainage system and numerous lakes, enforcing strict land use and development controls, implementing effective monitoring systems, rainwater harvesting, improving waste management systems, boosting community engagement and awareness, and increasing green cover. Capacity building in drainage management is another crucial step.
According to studies, the Northeast accounted for more than 50% of India’s total tree cover loss between 2001 and 2024. While Assam tops the list, it is followed by Mizoram, Nagaland, Manipur, and Meghalaya.
Sources:
The Hindu | Ceed India | Housing | Homesfy | Ghar TV | MCHI | Architectural Digest | BPAC | Global Forest Watch
