India’s Extreme Weather-Resilient Real Estate Sees Insurance Benefits
Properties built with climate resilience in mind are increasingly enjoying favorable insurance premiums as extreme weather events continue to impact the country’s real estate sector and insurance costs.
In 2023, natural catastrophes in India caused $12 billion in losses, exceeding the 10-year annual average of $8 billion, according to Swiss Re. The reinsurance company identified emerging risk hotspots susceptible to catastrophes such as floods and cyclones in Gujarat, Maharashtra, Tamil Nadu, and Delhi in a January report.
Developments like Mahindra World City, certified by the Indian Green Building Council, are demonstrating how climate-resilient design can provide natural benefits. Located next to Lake Kolavai, the development’s master plan incorporates the lake as a natural asset for water management during calamities.
The trend toward resilient building designs is being driven by businesses and property owners seeking to mitigate potential increases in insurance premiums, which are expected to rise further as climate impacts intensify. As the frequency and severity of extreme weather events continue to grow, the importance of climate-resilient construction is becoming increasingly evident in India’s real estate market.
