Flood risk vs property value: A sector specific market perception study of commercial properties

Bhattacharya-Mis, Namrata; Lamond, Jessica

Abstract

This study examines the perception of commercial property occupiers in the context of flood risk and property value. Relevant literature was reviewed to understand the factors affecting perception of commercial property occupiers. Questionnaire survey was conducted within selected areas of the two regions in Wakefield and Sheffield in the UK. Respondents were examined on a sector specific manner their response to vulnerability of property value towards flood risk. Apart from understanding the overall situation, the focus was on the perception of repeatedly flooded respondents to understand impact of flood memory of previous events within the system. Majority of the respondents from all sectors agreed that indirect impacts of flooding have a lingering effect on recovery activities and loss of income as a result of reduced usability of property as a business unit. Flood risk in general is not perceived to have a major economic impact but they are aware of the impact of reduced value or historical incidences of flooding can make value of properties to be vulnerable. Those with memory within the system in the form of experience of repeated incidents of flooding perceived the risk slightly differently in terms of importance of resilience enhancement against flood risk to minimise reduction of utility of commercial properties during flood events. The perception of commercial property owners were then validated by response from real estate commercial property experts via email survey. Since risk is not equal for all property sectors it is important to understand the perception of people separately for proper asset management, to make well informed investment plans and enhancing resilience against the vulnerability of value in the real estate market.

Citation

Bhattacharya-Mis, N., & Lamond, J. (2015). Flood risk vs property value: A sector specific market perception study of commercial properties. In J. Mackee, H. Giggins, & T. Gajendran (Eds.), Proceedings of the 5th International Conference on Building Resilience Held at Newcastle City Hall, Newcastle, New South Wales, Australia 15th - 17th July 2015 (356-1). NCP

• Conference Name: 5th International Conference on Building Resilience
• Conference Location: Newcastle, Australia
• Start Date: Jul 15, 2015
• End Date: Jul 17, 2015
• Publication Date: Jul 1, 2015
• Deposit Date: Aug 24, 2015
• Publicly Available Date: Mar 21, 2016
• Peer Reviewed: Peer Reviewed
• Pages: 356-1
• Book Title: Proceedings of the 5th International Conference on Building Resilience Held at Newcastle City Hall, Newcastle, New South Wales, Australia 15th - 17th July 2015
• ISBN: 9780994365200
• Keywords: repeat flood, perception, property value, commercial properties, memory
• Public URL: https://uwe-repository.worktribe.com/output/831663
• Publisher URL: http://www.newcastle.edu.au/__data/assets/pdf_file/0008/202967/FInal-5th-BRC-Proceedings-23-07-15.pdf
• Additional Information: Title of Conference or Conference Proceedings : 5th International Conference on Building Resilience