75% of homes in Europe are at risk of devaluation due to extreme weather

A report by Julius Baer reveals that 75% of homes in Europe are at risk of devaluation due to climate change. The lack of energy efficiency makes properties vulnerable to extreme weather and rising temperatures. Many residential buildings were constructed before 1980, lacking modern insulation standards. This has led to a significant price polarization in the real estate market, with energy-efficient homes commanding higher prices, while inefficient ones face discounts. The insurance sector is also affected, with rising costs impacting home values. As climate adaptation standards tighten, the valuation gap between efficient and inefficient buildings is expected to widen, prompting a financial dilemma for homeowners and cities.