Real estate: anticipating climate risks to protect your wealth

For many years, a property’s value was assessed primarily based on its location, construction quality or energy performance. Today, another criterion must be taken into account: its ability to withstand climate-related hazards. Heatwaves, droughts, floods, wildfires and storms can affect a property’s comfort, maintenance costs, insurance conditions and market value. In this context, a clear approach is emerging: understand the property’s level of exposure, assess its vulnerability and take proportionate action.
Article written by Sophie Debode, Head of Real Estate Offer and Maxime Egain, Real Estate Advisor at Societe Generale Private Banking

When climate becomes a wealth management issue

The summer of 2026 provided a particularly visible illustration of the effects of climate change in France, with record temperatures, severe soil drought, and prolonged heat episodes. These events serve as a reminder that climate risks can have tangible consequences for buildings and their surroundings.

Behind these national trends lie very different realities depending on the location and characteristics of each property. A densely built apartment with limited cross-ventilation may be difficult to cool during the summer, while a house may be exposed to flooding, surface water runoff, wildfires or ground movement caused by the shrinking and swelling of clay soils. According to public data cited by France Assureurs, 10.4 million homes are located in areas with medium to high exposure to this latter phenomenon.

However, exposure to a risk does not necessarily mean that damage will occur. Two neighboring properties may respond differently depending on their design, condition, building materials, ventilation, outdoor spaces, or any improvements already undertaken. Risk therefore results from the interaction between a climate event, a property’s location, and the specific vulnerability of the building itself.

How can a property’s resilience be assessed?

While the Energy Performance Certificate (EPC) remains an essential benchmark, it does not, on its own, provide a complete picture of the risks a property may face. A broader assessment may include several factors: the property’s exposure to specific natural hazards, summer comfort levels, the overall condition of the building, water management systems, insurance considerations, and potential improvements that could reduce the property’s vulnerability.

The solutions are often highly practical: measures to prevent water intrusion, improved ventilation, external solar shading, landscaping and greening of outdoor areas, rainwater harvesting systems or preventive treatment of structural cracks. The objective is not to undertake every possible measure, but rather to prioritize actions according to the identified risk, their effectiveness, their cost, and the constraints specific to the property.

Acting today to protect tomorrow

The benefits of a preventive approach extend well beyond the cost of repairs alone. Natural disasters could generate €143 billion in insured losses between 2020 and 2050, compared with €73.4 billion between 1989 and 2019. Selo According to France Assureurs, climate change is believed to be responsible for just over one-third of this increase, while economic and contextual factors also play a significant role.

With this in mind, Societe Generale Assurances partnered with four organizations in January 2026 to launch Geoya, a platform dedicated to climate-risk prevention. The initiative offers individuals, businesses, local authorities and non-profit organisations both diagnostic assessments and solutions designed to reduce their vulnerability to the consequences of climate-related risks. According to a study by the French Central Reinsurance Fund (Caisse centrale de réassurance), cited at the launch of Geoya, investments in certain natural risk prevention measures can help avoid insured losses that exceed the initial expenditure.

Sources
- Météo-France, “Climate Review of Summer 2026”, 3 September 2026.
- France Assureurs, “Climate Risks and Insurance”, consultation of on 18 September 2026.
- Societe Generale Assurances, “Launch of Geoya”, 28 January 2026. Cinq acteurs majeurs de l’assurance et de la maitrise des risques lancent Geoya, une solution de place inédite pour la prévention des risques climatiques - Société Générale

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