City heatwave phenomenon challenges property owners

24
Sep
2024
News - City heatwave phenomenon challenges property owners #Czech Republic #Prague #report #Savills

by Property Forum | Report

Extreme heat, droughts, and floods are becoming more frequent, and the ability of cities to prepare for these climate changes is playing an important role. In terms of heat, the top three cities in the new Savills Heat Resilience Index are Helsinki, Copenhagen and Stockholm. 


The index assesses 30 global cities best prepared to deal with extreme urban heat. Here, extreme temperatures and days over 30°C are rare, while progressive policy around ESG helps to mitigate the effects of extreme weather on their populations. In the comprehensive Heat Index, Prague was not evaluated. However, according to statistics from the Czech Hydrometeorological Institute, there were a total of 26 days in Prague in 2023 (station Prague-Vinohrady) where the temperature exceeded 30°C, placing Prague among the "cooler" cities.

The Index reveals that half of the top 10 ranked cities are in Europe, but even these cities may face risk as heatwaves are especially dangerous in places where buildings are not designed for extreme temperatures. Conversely, cities that regularly experience days over 30°C may be more adapted to hot weather, through extensive use of air conditioning. 

Ilona Zusková, Head of the Meteorology and Climatology Department at the Prague branch of the Czech Hydrometeorological Institute, says: "Based on the linear trend over the 30 years from 1994 to 2023 at the historical Klementinum station in the centre of Prague, the average annual temperature is increasing by 0.6°C per decade. The number of days with temperatures above 30°C increases by 4 days per year."

Jan Jurčíček, Head of Building & Project Consultancy at Savills, adds: "As a result of the heat wave phenomenon, property owners face two specific challenges. The first is the transitional risk of ensuring that properties are adapted to cope with climate change and aligning energy consumption with future legislation. The second challenge is compliance with the so-called EU taxonomy, which sets, among other things, the rules for climate adaptation. Non-compliance with the taxonomy could, in the future, make properties difficult to finance and trade."

“Urban heat should be considered by authorities when planning large regeneration schemes, especially where they involve densifying as this can intensify urban heat, and it is existing local communities that may be impacted most. Higher land values facing parks and water bodies often result in a concentration of taller buildings. This can form a ‘wall’ effect, hindering the dissipation of cooler air deeper into the urban environment. The solution lies in having a mix of building heights and permeability in the streetscape,” closes Chris Cummings, Director at Savills Earth.
 




Latest news


New leases

  • Golden Star Estate has secured a long-term lease agreement with global technology solutions and consulting provider C&F for nearly 1,900 sqm of office space at the Konstruktorska Business Center. Following the transaction, the property, located in Warsaw’s Mokotów business district, is now almost fully leased. The Polish branch of C&F will officially relocate to the facility at the beginning of 2027.
  • Natland Group has committed to its long-term presence at Prague-based Rohan Business Center through a lease extension covering 2,004 sqm of office space, together with storage facilities and dedicated parking spaces, in a deal brokered by iO Partners.
  • Yareal Polska has expanded the commercial offering at its flagship SOHO mixed-use development in Warsaw’s Praga-Południe district, securing three new lease agreements totaling nearly 500 sqm of ground-floor retail space. The developer has strengthened its tenant roster by signing pet supplies retailer Maxi Zoo, ceramics workshop Alike Pottery Studio, and coffee distributor Unroasted.

New appointments

  • Indotek Group has announced the appointment of Diederik Bakker as Group Chief Investment Officer and Group Head of Asset Management. In his new role, the Dutch real estate investment professional will gradually assume responsibility for the company's ITAM (investment, transaction, and asset management) activities across 12 European countries, supporting the next phase of Indotek Group’s growth. His focus includes facilitating sound investment decisions across Europe and developing a group-level portfolio management strategy that combines local market knowledge with international asset management know-how.
  • Peakside Capital Advisors has appointed Bogi Gabrovic to advise the board and support its investment and acquisition activities in Poland. Gabrovic brings more than 25 years of CEE real estate experience to the role, having previously held senior executive positions at CTP, Golub & Company, and White Star Real Estate, where she managed transactions exceeding €2 billion.
  • Katarína Brydone, Jana Vlková and Vendula Maršová have been appointed as the first Equity Partners of Colliers’ Czech business. Brydone brings more than 20 years of experience in international real estate. Vlková has more than 25 years of experience in commercial real estate. Maršová, Partner and Head of Valuation and Advisory Services, brings more than 16 years of experience in real estate valuation and advisory.


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