India's Costliest Cities: Rising Home Prices and Alarming Air Pollution Levels
Nithin Kamath, CEO of Zerodha, highlights the concerning trend of high home prices and dangerous air pollution levels in Delhi, Mumbai, and Bengaluru. He emphasizes the need for stricter emission norms and actionable solutions to address this critical iss
Air PollutionReal EstateHome PricesAqiUrbanizationReal Estate PuneFeb 25, 2025
In a recent post on X (formerly Twitter), Kamath shared insights from a real estate market report, pointing out an unsettling trend Delhi, Mumbai, and Bengaluru, which have seen the highest spikes in home prices, also suffer from dangerously high air pollution levels.
He questioned why this critical factor doesn't receive enough attention.
Kamath cited Knight Frank’s Q4 2024 Global Luxury Market Rankings, which showed that Delhi, Mumbai, and Bengaluru were among the top 15 cities in terms of home price increases.
However, he emphasized that the Air Quality Index (AQI) of these cities is a neglected aspect.
“The pricier cities in India have worse air quality, and these are averages — many places have even higher AQI,” Kamath noted.
Kamath explained how pollution levels tend to follow a U-shaped curve in a country’s development.
Initially, pollution levels rise but later decrease with advancements, as seen in the US, UK, and China.
However, he stressed that technology can provide solutions to break this pattern earlier.
“One obvious way to reduce SO₂ emissions is installing scrubbers in power plants.
China has done this, and despite burning record amounts of coal, its sulfur emissions have fallen.
In India, both coal use and SO₂ emissions are still rising,” he pointed out.
Kamath also emphasized the role of stricter emission norms, particularly in transportation.
“Transportation is the biggest source of pollutants, and urban populations are exposed to them the most due to congestion.
Stricter emission standards have historically forced automakers to innovate, and the electrification of transport fleets can make a significant difference,” Kamath said.
He warned of the economic impact of unchecked pollution.
“Pollution will eventually feed into prices.
Higher pollution means more health issues, and insurance companies are considering increasing health premiums by 10-15% for people in Delhi.
Now think about all the other ways pollution will interact with prices and inflation.
This is scary,” Kamath noted.
His post struck a chord with many, sparking discussions on public apathy and the urgent need for solutions.
One user wrote, “Making people aware is the first step.
Everyone thinks this isn’t an issue.
But with effort and investment, we can solve this in five years.” Another painted a grim picture of the cycle of exposure, illness, and rising costs due to pollution.
Air pollution remains a persistent crisis in India’s major cities, driven by vehicle emissions, industrial activity, construction dust, and seasonal crop burning.
Winters worsen the problem as pollutants get trapped close to the surface, creating thick smog.
High PM2.5 and PM10 levels pose severe health risks, from respiratory diseases to heart conditions.
While initiatives like promoting electric vehicles and stricter norms are in place, rapid urbanization and population growth continue to challenge efforts to curb pollution.
Frequently Asked Questions
What is the main concern raised by Nithin Kamath?
Nithin Kamath, CEO of Zerodha, raised concerns about the high home prices and dangerously high air pollution levels in India's costliest cities, particularly Delhi, Mumbai, and Bengaluru.
How do pollution levels typically evolve in a developing country?
Pollution levels in a developing country tend to follow a U-shaped curve—initially rising but later decreasing with advancements. However, technology can help break this pattern earlier.
What is one solution to reduce sulfur dioxide (SO₂) emissions?
One solution to reduce sulfur dioxide (SO₂) emissions is to install scrubbers in power plants, a practice China has implemented successfully despite burning record amounts of coal.
Why is stricter emission norms in transportation important?
Stricter emission norms in transportation are important because they force automakers to innovate and can lead to significant reductions in pollutants, especially in congested urban areas.
What economic impact does unchecked pollution have?
Unchecked pollution can lead to higher health issues, increased insurance premiums, and other economic costs, ultimately feeding into prices and inflation.
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