Flood risk labels

Abstract

The debate on climate risk labels in the Dutch housing market is gaining momentum, with opinions divided on their potential benefits and drawbacks. This thesis delves into the impact of flood risk labels on the housing market, focusing on residential real estate owned by professional investors. By adopting an investor's perspective, the study examines the implications of various flood risks, including those from main water systems, regional areas, and heavy rainfall. The research design incorporates a literature review, a questionnaire, and an expert discussion to validate the findings. The literature review explores the investment landscape in the Netherlands, existing labels in real estate, and sustainability reporting. The empirical research involves a questionnaire distributed to professional investors, followed by an expert discussion to validate the results. The study aims to understand how flood risk labels influence investment strategies and climate mitigation efforts. The findings reveal that flood risk labels somewhat benefit the decision-making process of professional real estate investors in the Netherlands. Investors consider flood risk labels as a valuable tool for risk reporting and guiding investment decisions in the face of climate change. The study contributes to the ongoing discussion on the necessity and design of climate risk labels, providing insights into their potential to improve housing valuations and investment strategies.