The price of flood exposure: flood risk effects on residential properties: a case study on residential property price responses following the 2017 flood event in Limburg, the Netherlands
Keywords
Loading...
Authors
Issue Date
2025-07-01
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
Climate change and flood risk pose growing challenges for the built environment, spatial planning, and real estate markets. This research examines the impact of flood probability, and its potential reinforcement after an actual flood event, on residential property prices in Limburg, the Netherlands.
Previous studies have shown that Dutch housing market responds differently to flood risk than market elsewhere, and this study confirms that pattern. Using HPM combined with a DiD approach, 49,801 housing observations between 2019 and 2025 were analyzed.
Findings reveal that properties in flood-prone areas are not discounted but instead show a price premium. Before the 2021 Limburg flood, properties in areas with a 1-in-300-year flood probability were priced 0.6%* higher, and homes in small risk zones even 2.4%*** higher than comparable properties in no risk zones. Post-flood, no significant price decrease was observed, prices remained stable or even rose slightly.
These results suggest that flood risk is not negatively capitalized into property prices in Limburg. The valuation of environmental risks appears highly context-dependent, shaped by local conditions, public perceptions, and institutional frameworks. Offering valuable insights for spatial policy and development in flood-prone areas.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen