Zerodha CEO Nithin Kamath has proposed a novel idea to address the worsening air and water quality in cities like Delhi and Bengaluru by linking property prices to environmental conditions. He suggested that property prices could be discounted based on the air and water quality in the area. This approach, he believes, would incentivise homeowners and communities to actively work toward improving their local environment, potentially leading to better urban planning and a collective focus on sustainability.
In his post on X, Mr Kamath highlighted the severe economic and societal impacts of pollution, such as reduced land values and degradation of civic infrastructure. He argued that aligning financial incentives with environmental well-being could drive meaningful change. For instance, improving air quality would not only enhance public health but also positively influence property values and economic stability.
“Maybe a property price discount for the quality of air and water is the solution. If economics accounted for this, maybe we would all figure this out. Essentially the air and water quality determines the rate for the property. Also, this would probably turn a property owner into the owner of the place, and better odds of fixing it if working as a group. For example, if I went from owning a property in JP Nagar and caring for it to caring for my layout in JP Nagar and then the whole of JP Nagar, it could have a better outcome,” he wrote.
See the tweet here:
You have to wonder what it will take for us to take air pollution more seriously. By the way, this data only covers until 2019, and things have only gotten worse in the last five years.
Maybe a property price discount for the quality of air and water is the solution. If… pic.twitter.com/QtyzkqoG43
— Nithin Kamath (@Nithin0dha) November 24, 2024
Mr Kamath also highlighted that the Air quality index issue extends far beyond Delhi, with many urban areas struggling with poor air quality. Cities like Mumbai, Chennai, Kolkata, and Bengaluru are also grappling with severe air pollution, posing serious health risks to their residents.
This suggestion has sparked discussions on the internet, with many users seeing potential in this systemic approach to address urban challenges.
One user wrote, “True, the actual worth of real estate reduces when one realises that they are actually breathing polluted air and reducing life span and that even spending crores of rupees on buying a luxury home can’t buy you real luxury.”
Another commented, “40 percent of this is due to vehicles . Immediate introduction of 100,000 ac electric buses in India ( China deployed 133,000 last year ) can have a significant impact to reduce congestion and pollution . We have the intent, now need execution at supersonic speed.”
A third said, “Interesting point. Bad air quality might actually affect property prices in metros. Clean air is priceless!” A fourth added, “People should start Boycotting polluted cities and avoid buying houses, then prices will go down. Companies should support their employees in major cities and give them wfh so that it will start a good chain reaction. Or perhaps companies should start relocating to new cities where pollution is less.”
His suggestion comes at a time when Delhi’s air quality has reached hazardous levels, with an Air Quality Index (AQI) of 412. Neighbouring cities aren’t faring much better, with Noida and Ghaziabad’s AQI hovering in the ‘very poor’ category.
