Under water: Is the real estate industry waking up to ‘climate risk’?

Climate Alpha CEO, Parag Khanna joins Global News to discuss how real estate investors are now factoring in climate change.

"Parag Khanna, an entrepreneur and author who has written extensively on migration, argues that a warming planet is completely changing the calculus of where people are choosing to live.

His latest venture is a platform – Climate Alpha – powered by artificial intelligence that makes cutting-edge predictions on property valuations based on climate risks and other factors.

Machine learning, Khanna says, can take into account a range of data points, from climate forecasts, to immigration patterns, to the availability of land. These data can then be used to assess property prices in ways that financial data and models simply can’t compete with.

For example, new AI-powered modelling tools can look at how much property prices have been going up or down in a given property market over a period of time, and calculate where those valuations will go in the coming years based on a variety of climate risk calculations and migratory patterns, Khanna says."