Air Quality Becomes a Crucial Factor in Real Estate Investment Decisions
Rising air pollution in India's major metros is reshaping real estate investment patterns, with affluent buyers prioritizing health, lifestyle, and long-term value when selecting properties.
Air QualityReal EstateInvestmentClean AirProperty ValueReal Estate NewsNov 17, 2025
Darshini Thanawala, Vice President – Business Growth and Strategy at The Chapter, notes a significant shift in urban buyer behaviour.
“Seasonal getaways have evolved into year-round relocation and investment decisions. Families prefer homes in locations offering cleaner air, open spaces, and a slower-paced living,” she says.
Non-urban destinations such as Goa and Alibaug are emerging as viable options for semi-permanent stays, supported by improved connectivity, remote work flexibility, and expanding social infrastructure.
Amar Kapoor, CEO of Terra Grande by Eldeco, emphasises the role of environmental quality in real estate decisions.
“Air quality is a defining factor in lifestyle and investment choices across urban India. Smart homebuyers are opting for properties in low-AQI zones or with high sustainability ratings, whether for weekend retreats, second homes, or full relocation. Health and wellness are now central to investment focus. Just as proximity and infrastructure once drove property value, air quality, green access, and ecological planning are shaping outcomes today. A naturally balanced environment is no longer just a lifestyle preference but a source of long-term investment value,” he said.
Affluent buyers are demonstrating a willingness to pay a ‘clean air premium’ for such properties.
Thanawala adds, “A second home in a low-AQI zone provides returns beyond monetary gains. It safeguards health and delivers a quality-of-life advantage that increasingly factors into property valuation.”
Industry players also report rising demand for long-term villa rentals in areas with better air quality.
Dhimaan Shah, Executive Director and Co-CEO of Isprava Group, notes, “Affluent consumers are choosing villas and rentals in clean-air destinations to temporarily relocate until city air quality improves. This trend is redefining the investment potential of these markets.”
Environmental considerations, including air quality and access to green spaces, are now central to real estate investment decisions alongside traditional criteria like location and infrastructure. Developments such as The Chapter’s project in Sircaim combine strategic connectivity with natural surroundings and wellness-focused design, reflecting this shift.
Frequently Asked Questions
How is air quality affecting real estate investment decisions in India?
Air quality is becoming a crucial factor in real estate investment decisions, with affluent buyers prioritizing properties in low-AQI zones or areas with high sustainability ratings. Health and wellness are now central to investment focus, alongside traditional criteria like location and infrastructure.
What are some non-urban destinations gaining popularity for real estate investments?
Non-urban destinations such as Goa and Alibaug are gaining popularity for real estate investments due to their cleaner air, open spaces, and slower-paced living. Improved connectivity, remote work flexibility, and expanding social infrastructure are supporting this trend.
Why are affluent buyers willing to pay a 'clean air premium' for properties?
Affluent buyers are willing to pay a 'clean air premium' for properties in low-AQI zones because these locations offer better health and a higher quality of life. This premium is seen as an investment in long-term well-being and property value.
How are industry players responding to the demand for clean-air properties?
Industry players are responding to the demand for clean-air properties by offering long-term villa rentals in areas with better air quality. This trend is redefining the investment potential of these markets, as affluent consumers seek temporary relocation options until city air quality improves.
What are some examples of developments that combine environmental and wellness-focused design?
Developments such as The Chapter’s project in Sircaim are examples of properties that combine strategic connectivity with natural surroundings and wellness-focused design. These projects reflect the growing importance of environmental considerations in real estate investment decisions.
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