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.