Nithin Kamath Suggests Linking Property Prices to Air Quality
Nithin Kamath, co-founder of Zerodha, has ignited a debate by proposing that real estate prices should be tied to air quality. He argues that properties in high-pollution areas should see lower valuations due to the associated health risks.
Nithin KamathZerodhaAir QualityReal EstateAqiReal Estate MumbaiFeb 05, 2025
Kamath believes that areas with high air pollution should have lower real estate prices, reflecting the health risks associated with living in such environments.
His stance was influenced by a conversation with entrepreneur Bryan Johnson and recent experiences in Mumbai and Bengaluru.
During a podcast recording in Mumbai’s Bandra, Kamath was taken aback by the high Air Quality Index (AQI) levels, even in a sea-facing apartment.
The AQI was recorded at 160+, a concerning figure that raised questions about the air quality in more congested areas.
Similarly, his office in Bengaluru’s JP Nagar, a relatively quiet neighborhood, had an AQI of 120+.
Kamath wrote on LinkedIn, 'So, shouldn’t property prices be linked to AQI? The higher the AQI, the lower the real estate prices should be.
That means if an area has poor air quality, property prices and rents should be lower, and vice versa.
By living in such areas, you are accepting higher odds of respiratory ailments, cancer, etc.'
This idea is not new for Kamath.
He has previously suggested linking property values to air and water quality, proposing a 'property price discount' for high-AQI areas to encourage better environmental policies.
Bryan Johnson, a biotech entrepreneur known for his extreme longevity experiments, also highlighted the severity of India’s air pollution issue.
During a podcast with Nikhil Kamath, Johnson, who was wearing a face mask, abruptly ended the conversation, citing the poor air quality.
When asked about the severity, Johnson quipped, 'I can’t see you over there.'
Kamath’s recent experiences in Mumbai and Bengaluru have reinforced his belief that air pollution is a significant issue across major cities, not just limited to Delhi in the winter.
In Bandra, the AQI being 160+ in a sea-facing apartment was alarming, and in Bengaluru, the rapid construction and poor road conditions exacerbate the problem.
The debate over linking property prices to air quality could push for better environmental policies and create a more transparent market.
By making property prices reflective of air quality, people may be more inclined to demand cleaner air and push for significant changes in urban planning and construction practices.
Frequently Asked Questions
Who is Nithin Kamath?
Nithin Kamath is the co-founder of Zerodha, a popular online trading platform in India. He is known for his innovative ideas in finance and technology.
What is the Air Quality Index (AQI)?
The Air Quality Index (AQI) is a measure used to communicate how clean or polluted the air is and what associated health effects might be of concern. It is calculated based on the levels of various pollutants in the air.
Why does Nithin Kamath suggest linking property prices to air quality?
Nithin Kamath believes that properties in high-pollution areas should have lower valuations due to the health risks associated with living in such environments. This could push for better environmental policies and make people more aware of air quality issues.
What was Bryan Johnson's reaction during the podcast with Nikhil Kamath?
Bryan Johnson, a biotech entrepreneur, abruptly ended the podcast due to poor air quality, stating that he could not see the other person due to the pollution.
How does air pollution affect property prices in cities like Mumbai and Bengaluru?
High levels of air pollution can lead to lower property valuations if the linkage between air quality and property prices is implemented. This could make people more aware of the health risks and push for better urban planning and environmental policies.
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