Natural hazard risk analysis for real estate

Natural hazards and extreme weather events have always posed a threat to people, property, and infra­structure. Partic­u­larly in densely populated countries, the material value of real estate and infra­structure is high, as are the risks posed by natural hazards such as landslides or mudslides. Accord­ingly, protection and assessment of the hazard potential for real estate are of paramount impor­tance.

According to the World Economic Forum’s Global Risk Report, weather extremes are the risk with the highest proba­bility of occur­rence and above-average impact.

It is difficult to predict exactly where and when an event will cause damage to a building. Hazard maps, which depict exposure as a combi­nation of proba­bility and intensity of specific natural hazards, can solve this by deter­mining the risk at a site or area. However, in order to estimate the specific risk to a property, we must also consider its vulner­a­bility and value. For example, properties with an under­ground garage or basement are more suscep­tible to surface runoff.

In this study, we were able to empir­i­cally determine the impact of natural hazards on the price of single-family homes and condo­miniums. We can see that individual natural hazards have value-reducing effects, but at the same time, construction continues in vulnerable areas.

Surface runoff

The risks of natural hazards or climate change must be taken into account in site analyses. To better map the exposure of properties and real estate portfolios, we have built a compre­hensive climate and natural hazard database.

Wüest Dimensions, the leading real estate management platform, contains data sets on floods, surface runoff, storms, hail, debris flows, mudslides, landslides, avalanches, earth­quakes, and radon. With the ability to consult the risk of each natural hazard for the entire Swiss residential area and partly visualize it on a map, you can assess the hazard potential and take appro­priate measures where necessary.

In addition to natural hazards, you can also account for climate hazards, such as current and future heat days (>30°) and cooling degree days. These not only affect the building structure (mainte­nance), but they can also have a signif­icant impact on operating costs.