Bloomberg Uses ValueSpace’s Work to Illustrate the €2.5 Trillion Subsidence Problem

Bloomberg investigated the rising costs associated with sinking land, known as subsidence. Although a global issue, Europe is the epicenter because of its clay-rich soil and relatively high population density.

• In Europe, potential damage from subsidence could reach €2.5 trillion, according to ECB estimates.

• In London, ground level changes over the next five years are expected to affect two-fifths of the housing stock, equating to over a million homes, as per the British Geological Survey.

ValueSpace helped Bloomberg in developing up-to-date subsidence exposure maps for London. Satellite data shows that a few years ago, central London suffered the most from subsidence, but now it affects eastern neighborhoods more.

Clay soils naturally contract and expand depending on ground moisture levels. Prolonged droughts or increased rainfall due to changing climate patterns exacerbate this ground movement and can damage buildings.

ValueSpace provides a 2 in 1 tool that includes near real-time area or city-level subsidence exposure map - offering a detailed overview of subsidence hotspots - with the functionality to zoom in for an in-depth understanding of movement risks on property level.

In the UK, the latest surge in subsidence damage was between 2019 and 2023, during which insurance claims for this hazard rose by 78%, and the average payout increased by 40%, according to the Association of British Insurers. With the country facing one of its driest springs in a century, 2025 could be another high-risk year. Understanding the locations of subsidence hotspots has become essential.

Read the full Bloomberg article here.

If you would like more information on satellite-based subsidence exposure mapping and monitoring, please reply to this email. We look forward to speaking with you soon!