Land subsidence poses significant damage risks to residential real estate, including pile rot, differential settlements, pluvial flood risk, and dewatering risk amounting tens of thousands of euros. In the Netherlands, the number of affected houses has surpassed one million and is estimated to reach two million, accounting for a quarter of all houses in the country. Without an action perspective homeowners are left to their own devices which this research shows can lead to postponing action until risks materialize. To mitigate these risks, multiple adaptation strategies are available. This thesis focuses on determining the cost-effectiveness of two general pathways for residential real estate constructed with either a wooden pile foundation or a shallow foundation: renovating existing houses or replacing them entirely. The study also investigates whether incorporating additional measures aimed at improving overall benefits such as increasing the amount of living space or transitioning towards a more sustainable house with energy label A, is cost-effective by comparing the costs and benefits associated with the adaptation strategies. When the benefits outperform the costs the strategy is labelled favourable. Through a comprehensive analysis, this research provides valuable insights into economically viable approaches for addressing land subsidence-related risks in residential real estate in relation to the location specific characteristics. It proves additional measures are required to make either renovation or replacement a cost-effective adaption strategy. Two options are shown to be cost-effective. Firstly, renovation including additional investments to increase square meters of living space and transitioning to an energy performance A-label. Secondly, replacement including densification by building back more square meters of living space, increasing the amount of houses or a combination of the two. Both require large investments resembling around 75% to 150% of the current housing price respectively. Increasing the amount of square meters even further improves the result however this increasingly affects the character of the neighbourhood and its social composition. With these results, this thesis hence provides an action perspective to homeowners and stakeholders including policy makers and financial institutions by means of a solution space to address land subsidence in an economically favourable way, whilst simultaneously reflecting on the differences in implications for the parties involved.

In the coming years, the Netherlands is expected to face various climate change-related challenges. Until 2030, the Dutch government has set the goal for the development of nearly a million dwellings (De Jonge, 2022), whereby 600,000 dwellings are being carried out in areas prone to flooding (Deltares, Bosch Slabbers, & Sweco, 2021; Groenemeijer & van der Lelij, 2021). In literature, work has been done regarding the current use of adaptation pathways, policies and their impact on decision-makers and practitioners (Restemeyer, van den Brink, & Woltjer, 2017; van Alphen, Haasnoot, & Diermanse, 2022; Yousefpour & Hanewinkel, 2016). However, limited efforts have been made regarding their practicality in the real estate sector. This research seeks to address the fundamental question, “who pays what, when?”. At its core, this research revolves around the influence of climate risks on the investment decision-making process in polder-area developments in the Netherlands and examines the research question: “In which way do water risks impact the investment decision-making process in polder-area development projects in the Netherlands?”. In this qualitative study, the urban area development projects Westergouwe (Gouda) and Gnephoek (Alphen aan den Rijn) are compared and analyzed. With the use of explorative interviews, and semi-structured in-depth interviews, the research strived to answer the research question. Afterward, an expert panel is held to bridge the gap to standard practice. This research found that the integration of adaptive measures into the investment decision-making process is currently insufficient. There is a need for clear policy, clear distribution of responsibilities and prioritization of water safety over financial considerations in the investment decision-making process. By navigating this complexity, driven by collaborative efforts, a holistic approach becomes imperative to forge a path toward a more resilient built environment.

The increasing impacts of climate change are presenting numerous challenges globally, with one of the most pressing being the heightened risk of flooding due to rising sea levels and more intense rainfall patterns. However in many countries, among which the Netherlands, a significant portion of residential properties are at risk of flooding—a risk that is often underappreciated or overlooked by homeowners. The primary focus of this thesis is to explore the potential introduction of a flood risk disclosure policy, referred to as the "Climate Label," and its implications for real estate development practices. By making flood information readily available, the policy aims to influence market values and guide investment decisions, potentially encouraging more resilient housing developments. The central question of this study examines how such a policy might affect the decision-making processes of real estate developers and, consequently, the distribution of flood risks across new residential constructions. The exploration of this topic is timely and significant, given the scarcity of existing literature on the impact of flood risk information policies on housing supply and developer behavior. Real estate developers, particularly those in the private sector, play a crucial role in the construction of new housing and their profit-driven motives make their responses to such policies particularly insightful for understanding broader market dynamics. This research employs an Agent-Based Modeling (ABM) approach to simulate the interactions within the housing market, developer decision-making, and assess the potential outcomes of implementing the Climate Label. Moreover, interviews with real-estate developers are conducted to achieve a deeper understanding of their decision-making, their current perspective of building flood-resilient housing, and how a Climate label would influence such. The model results it can be concluded that a housing value shift due to flood risk disclosure can cause a change in the development patterns of new residential houses. However, the distribution of flood risks is highly dependent on the magnitude of the price shift, whether developers perceive it as a gain or loss, and the reference point they use in their project decision-making to assess gains and losses.

The increasing impacts of climate change are presenting numerous challenges globally, with one of the most pressing being the heightened risk of flooding due to rising sea levels and more intense rainfall patterns. However in many countries, among which the Netherlands, a significant portion of residential properties are at risk of flooding—a risk that is often underappreciated or overlooked by homeowners. The primary focus of this thesis is to explore the potential introduction of a flood risk disclosure policy, referred to as the "Climate Label," and its implications for real estate development practices. By making flood information readily available, the policy aims to influence market values and guide investment decisions, potentially encouraging more resilient housing developments. The central question of this study examines how such a policy might affect the decision-making processes of real estate developers and, consequently, the distribution of flood risks across new residential constructions. The exploration of this topic is timely and significant, given the scarcity of existing literature on the impact of flood risk information policies on housing supply and developer behavior. Real estate developers, particularly those in the private sector, play a crucial role in the construction of new housing and their profit-driven motives make their responses to such policies particularly insightful for understanding broader market dynamics. This research employs an Agent-Based Modeling (ABM) approach to simulate the interactions within the housing market, developer decision-making, and assess the potential outcomes of implementing the Climate Label. Moreover, interviews with real-estate developers are conducted to achieve a deeper understanding of their decision-making, their current perspective of building flood-resilient housing, and how a Climate label would influence such. The model results it can be concluded that a housing value shift due to flood risk disclosure can cause a change in the development patterns of new residential houses. However, the distribution of flood risks is highly dependent on the magnitude of the price shift, whether developers perceive it as a gain or loss, and the reference point they use in their project decision-making to assess gains and losses.

Climate change poses a significant challenge to humanity, nature and the environment. Next to climate mitigation, climate adaptation becomes increasingly important to ensure liveable surroundings. Rising temperatures are causing more intense and more frequent heat waves, impacting housing conditions. Housing associations have the duty to provide safe and healthy dwellings for their tenants, which is why it is important to also focus on heat. This research focuses on composing a transition image and transition paths for housing associations in the Netherlands. A literature review, content analysis, and interviews with various stakeholders were conducted to assess the current state, the urgency to act, and the ambition level. 70% of the housing associations are aware of the rising problem and have any form of adaptation. The amount of adaptation is not sufficient to meet the requirement of providing safe and healthy dwellings. To accelerate the process, housing associations must continue refining their policies, stakeholders should collaborate to share knowledge, the frontrunners of housing associations should share their strategies, and differing opinions among stakeholders should be openly discussed. Additionally, housing associations should set up a proper complaints procedure and should implement solutions such as providing cool spaces, appointing tenant complex managers and utilizing the skills and knowledge of tenants with different cultural backgrounds, when technical adaptation is not possible in the short term.

Being both a low-lying delta and having one of the most significant mortgage-to-debt-to-GDP ratios in the world, the Dutch economy is vulnerable to damages to real estate due to floods as this could lead to large-scale householder default and ultimately destabilize their economy. Notwithstanding, a generic and widely adopted tool to assess flood risks and their subsequent effect on real estate values in practice is yet to be constructed. This research aimed to understand the potential impact of flood vulnerability on real estate values, the economic models guiding the assessment, and the subsequent role of stakeholders in maintaining the stability of the values. A combination of quantitative and qualitative methods was employed throughout this study to answer the primary research question. First, state-of-the-art models for examining the effect of floods were explained through a literature review. Second, a framework was constructed to define flood vulnerability, including socio-economic status, disaster-bearing capabilities, and flood exposure. This enabled the quantification of flood vulnerability levels of neighborhoods in the case study. Third, qualitative methods in the form of a literature review and exploratory semi-structured interviews with stakeholders were utilized to understand their barriers, drivers, and enablers and the ensuing opportunities to contribute to maintaining the stability of real estate values. The results indicated that the definition and usage of the parameters are vital to assess the effects of flood risks on residential real estate values. In addition, the results showed significant effects on flood vulnerability when including a subset of indicators besides flood exposure. When constructing a more accessible tool for all stakeholders, employing a more integral definition of flood vulnerability may thus be more socially just. Stakeholders may contribute to the stability of real estate values by actively adapting and incentivizing each other to similar behavior. In addition, organized irresponsibility (i.e., stakeholders contributing to an issue without wanting to take responsibility for the caused risks) and pillarization appear to be embedded within the system in the Netherlands. Through cooperation, division of responsibilities, and taking ownership, devaluation risks may be diminished and the phenomenon of organized irresponsibility reduced. Moreover, by prolonged engagement of initiating stakeholders, a shift from short-term profit to long-term real estate values may be stimulated, potentially contributing to the prevention of enlarged social injustice due to flood risks. Within the shift towards organized responsibility, this research hints towards a vital role for both the government and insurers.