Extreme weather events have taken center stage in the global real estate market. Hurricanes, fires, floods and droughts not only generate structural damage, but also raise operational costs and insurance premiums.

According to The Wall Street Journalbetween 2019 and 2023, premiums for commercial properties in high-risk areas in the U.S. increased by more than 50%, driven by the frequency and intensity of claims. In Chile, previously unthinkable phenomena - such as the tornado in Puerto Varas in May 2025 - remind us that these risks are no longer distant or theoretical.

This new reality demands active resilience strategies. In a context where climate change is a tangible variable, real estate asset owners must incorporate mitigation and adaptation measures. Below, we share three key recommendations:

Strengthening infrastructure and energy efficiency

Reviewing the design and environment of the property is essential to reduce vulnerabilities:

• Physical adaptationsPhysical adaptations: elevation of structures, hydraulic barriers and thermo-pane windows to improve thermal comfort and energy efficiency.
• Applied technologyIntelligent sensors, efficient lighting and predictive maintenance with AI help optimize consumption and anticipate failures.

These measures not only strengthen the property in the face of climate, but also align it with future efficiency and carbon regulations.

Integrating renewable energy and sustainable water practices

Diversifying sources and reducing consumption is part of the new standard:

• Solar or wind systems with storage with storage allow operation even in the event of power outages.
• Water managementefficient faucets, rainwater harvesting and graywater reuse improve sustainability and can access green financing.
• Resilient landscapingnative or low water consumption species reduce demand and provide adaptation to the environment.

Assess risks and adapt on an ongoing basis

Climate resilience is a process, not an event:

• Risk diagnostics adjusted to the local context adjusted to the local context allow prioritization of hazards.
• Adaptation plans with protocols, maintenance and energy audits strengthen emergency response.
• Education and participationDigital platforms can promote good practices among users and tenants.
• Regulatory monitoringAnticipating new regulations avoids cost overruns and improves decision making.

Adapting to climate change is no longer optional. It is a strategy to protect assets, optimize efficiency, access better financing conditions and increase the future value of real estate assets.

Investing in resilience today is investing in profitability tomorrow.

DISCLAIMER

Marco Aurelio Arellano

Real Estate Funds Analyst Fynsa AGF