Assessing Climatic Risks on Commercial Real Estate in Ayeduase and Kotei, Ghana: Pathways to a Sustainable Future

Abstract

The paper evaluated the effects of climate change, particularly temperature increases, on commercial real estate in Ayeduase and Kotei, Ghana. The research identified rising temperatures as a significant risk affecting property values, operational efficiency, and sustainability. It aimed to explore stakeholder perceptions, assess climate risks, and propose adaptation strategies for the commercial real estate sector. A qualitative research approach involved 20 stakeholder interviews and document analysis. Participants included property developers, investors, real estate agents, government officials, and environmental experts, who provided insights into increased temperatures' financial and structural implications. The findings indicated that primary concerns included higher cooling costs, infrastructure deterioration, and reduced tenant satisfaction. The demand for cooling systems surged, resulting in increased operational expenses. Structural vulnerabilities, such as material degradation, were noted due to prolonged exposure to extreme heat. The study found that while some stakeholders had implemented energy-efficient cooling technologies and climate-responsive building designs, financial limitations and a lack of awareness hindered broader adaptation efforts. It recommended policy measures such as stricter building regulations, financial incentives for green construction, and investments in sustainable urban planning. Additionally, it emphasized the need for greater stakeholder awareness and collaboration between the government and private sector to enhance climate resilience. A key limitation of the study is its relatively small sample size, which may not capture the full diversity of stakeholder perspectives.  However, the findings provide valuable insights for future research. Future research should investigate the long-term financial impacts of climate risks on commercial real estate and evaluate the effectiveness of adaptation strategies over time. The study concluded that integrating climate-responsive strategies into real estate development is vital for ensuring sustainable urban growth and mitigating the risks associated with climate change.