In cases where some permanent inundation may occur, displacement, relocation, and cultural stress may occur, accompanied by a decline in land and property values. In general, economic losses that may occur in coastal areas basically fall under three categories, the direct losses of economic services from land and capital caused by shore-line retreat and storm damage, cost of protection, mitigation and response measures taken to minimize the losses, and lost opportunities due to sea level rise. If coastal areas are developed without anticipating sea level rise, than there is a threat of damage and relocation in the future.

Increased intensity of such exogenous shocks combined with a growing population may lead to increased displacement of rural communities, human migration, and rapid, unplanned urbanization. Hundreds of thousands of people particularly from the low lying areas are uprooted during floods, houses are destroyed/damaged, means of communications are damaged and disrupted, standing crops are wiped out and thousands of livestock are drowned.