The case for climate resilient Philippine real estate

In July, Tropical Storms Wipha and Francisco, followed by Typhoon Co-may, impacted the Philippines. According to the National Disaster Risk Reduction and Management Council (NDRRMC), roughly 9.7 million individuals or around 2.7 million families were affected. Infrastructure losses reached an estimated PHP16.5 billion, while 108,375 damaged houses were reported across different regions throughout the country.

These figures serve as a stark reminder of the reality that we face and underscores the importance of climate resiliency in real estate development.

The International Finance Corporation's (IFC) 2021 introduction of its Building Resilience Index (BRI), with the Philippines as the pilot country, provides a welcome development for the industry. This comprehensive rating system evaluates building resilience against wind, water, fire and geoseismic risks, providing developers and investors with quantifiable metrics for climate adaptation and decision-making.

The programme currently features eight verified projects, which include Imperial Homes' Via Verde Padre Garcia in Batangas and seven office buildings by NEO and SM Investment Corporation, all in Bonifacio Global City (BGC). Momentum continues to build as RLC Residences partnered with the IFC in 2024, committing to deliver one million square metres of net-zero carbon and climate-resilient condominiums by 2031.

The shift towards climate resiliency isn't solely supply-side driven. Occupiers are also demanding the same. JLL's Future of Work Survey 2024 reveals that APAC corporates are prioritising climate-resilient and sustainable workplaces. Around 72% of respondents indicated they will only select buildings that show resilience to climate events, including drought, flooding and hurricanes.

Climate resilient features, much like sustainable design, are not just “nice to have” but ought to be the norm. Those who fail to recognize the value of it or delay in adopting it run the risk of being left behind, especially with the increasing demand for climate-resilient assets by investors, occupiers, and policy makers. Making climate resilience a priority isn’t just about weathering the next storm, it’s about building long lasting assets that can thrive and adapt under the ever-changing real estate landscape.