The State of Climate Risk for Real Estate in Europe

Almost every building in Europe carries a climate hazard. Very few carry a material loss.

That is one of the central findings from our new white paper, based on 16,423 modelled assets across 30 European markets and €345bn in gross asset value.

The data shows that climate risk is highly concentrated. Just 5% of assets account for 60% of expected physical climate loss, while fewer than 4% of assets lose more than 1% of value per year under the 2050s scenario.

At the same time, the transition bill is becoming harder to ignore. More than half of assets with pathway data are already misaligned on an EPC basis, while combined physical and transition Climate VaR reaches 8.3% of gross asset value to 2030 in the analysed sample.

The implication for owners, lenders and investment committees is clear: portfolio averages are not enough. The real task is to identify the assets carrying the loss, understand the dominant hazard, price the cost to fix it and build the evidence before refinancing or exit.

Download The State of Climate Risk for Real Estate in Europe 2026 to explore the full findings.