Abstract Book of the 5th World Conference on Climate Change and Global Warming
Year: 2025
DOI:
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Evaluating the Impact of Urban Heat on Residential Property Prices: A Case Study of Hyderabad, India
Abhishek Siva Sai, Bharath Haridas Aithal
ABSTRACT:
As urbanization and climate change intensify the development of Urban Heat Islands (UHIs), cities globally encounter substantial health, environmental, and economic issues, especially for at-risk populations. UHIs modify local climates, generating urban hotspots that disproportionately impact populations. In developing countries like India, the rising frequency of heatwaves augment energy and water consumption, affecting operating costs and economic growth. Although current literature has examined the effects of UHIs on public health and the environment, research on their economic consequences, especially for residential property values, is scarce. With 40% of India’s population anticipated to reside in urban areas by 2030, contributing 70% to the GDP, comprehending the economic ramifications of UHIs is essential for proficient urban planning. This study assesses the effects of metropolitan heat on residential property values in Hyderabad, a swiftly expanding tropical city. It employs remotely sensed data to delineate UHI hotspots and pinpoint susceptible regions based on Surface Urban Heat Island Intensity, Urban Thermal Field Variance Index, heat exposure, demographic sensitivity, and adaptive capability. Utilising a geographic hedonic pricing model, the research analyses property data alongside environmental variables to assess the marginal effect of heat on property values. The study conjectures a negative association between UHI intensity and property values, suggesting lower prices in areas with more UHI exposure. The heat vulnerability map illustrates the uneven spatial distribution of UHI effects, facilitating focused climate-resilient investment strategies. This research underscores the importance of climate considerations in urban real estate markets and educating stakeholders on sustainable development amidst climate change.
keywords: Heat Risk, Hedonic Pricing, Urban Heat Islands, Urban Resilience, Vulnerability