Zerodha's Nithin Kamath On Real Estate Pricing: ‘Shouldn’t Property Prices Be Linked to AQI?’

Real estate prices are usually determined by various factors, including infrastructure, amenities, and location. Zerodha co-founder Nithin Kamath has sparked a thought-provoking discussion on whether property prices should be linked to air quality.

Kamath questioned the reasons for high real estate costs in areas with poor air quality in his tweet, arguing that rental pricing and property values had to take into account the health risks of residing in polluted areas. Kamath's viewpoint originates from an eye-opening experience that caused him to question his previous beliefs. He had always believed that the worst air quality problems, mostly during the winter, were limited to Delhi.

He had to reconsider his belief after recent encounters in his workplace in JP Nagar, Bengaluru, and while recording a podcast in Bandra, Mumbai. He tweeted:

“The biggest takeaway for me after meeting @bryan_johnson was debunking the myth I once believed: that only Delhi in India has an air quality problem—and that it occurs only in winter.”

In Bandra, Kamath was shocked to find the AQI at 160+ even in a sea-facing apartment. Afterwards, even at his office in JP Nagar, a quieter portion of Bengaluru, the AQI was still above 120. He pointed out that in contrast, most places in the US and Europe have AQI levels below 50, which is considered good.

He emphasised that if air quality is this bad in comparatively peaceful locations, it must be significantly worse in the city's more populated areas. This led him to question why real estate prices don't account for these health hazards.

In his tweet, Kamath advises that rents and property prices in high-AQI zones be reduced because living in such places raises health risks such as respiratory disorders, cancer, and cardiovascular problems. He wrote:

“So, shouldn’t property prices be linked to AQI? The higher the AQI, the lower the real estate prices should be.”

By addressing his personal experiences, Kamath emphasises the rising relevance of air quality in property values, proposing that pricing should consider air quality in addition to location and amenities.

A few months ago, Kamath had previously proposed linking property values to both air and water quality as a way to address India’s pollution crisis. He suggested introducing a ‘property price discount’ in areas with high AQI, stressing that residents in such locations are inheriting greater health risks.

Kamath also urged researchers and hospital chains to collaborate with Zerodha’s Rainmatter Foundation to study the impact of poor air quality on public health. He invited researchers working on AQI-related studies to connect with Rainmatter to explore possible solutions.