Climate change remains a minor concern for prospective homebuyers, with only 12.1% citing it as a key factor when choosing a property. This is despite the fact that more than 2.7 million people live in areas at high risk of flooding, according to data from Unión de Créditos Inmobiliarios (UCI), based on figures from the National System of Flood Zone Mapping (SNCZI) under the Ministry for Ecological Transition and the Demographic Challenge.
Traditional considerations continue to dominate purchasing decisions. Price is the primary concern for 72% of buyers, followed by a suitable location (48.8%) and being able to afford the home with their own salary (48.3%).
UCI emphasises that buyers tend to prioritise immediate factors, even though exposure to climate risk can affect a property’s future value, insurance conditions and the potential need for adaptation measures.
“It’s understandable that buyers focus on price or interest rates. But climate risk is now a structural variable that should be considered before choosing a home. Anticipating this protects family assets and strengthens the sustainability of the property,” said Lorena Zenklussen, Director of Mortgage Financing at Unión de Créditos Inmobiliarios.
UCI stresses that the goal is not to replace traditional factors – such as price, financing conditions or job stability – but to broaden the perspective in a decision that typically spans decades.
“Years ago, we naturally incorporated a culture of responsible purchasing in terms of debt and savings. The next step is to integrate climate resilience as well. Being informed and anticipating risks is a way to protect both financial stability and asset value,” Zenklussen explained.
According to UCI, climate risk is already embedded in the European financial system. The European Banking Authority (EBA) requires financial institutions to incorporate climate and environmental risks into their management frameworks and prudential assessment. This means that exposure to physical risks – such as flooding – is increasingly factored into comprehensive financial risk assessments.
