The Livability Index: Rethinking Real Estate for a Better Quality of Life
Explore how the Livability Index is transforming the real estate landscape, focusing on quality of life over price per square foot.
Real EstateLivability IndexQuality Of LifeUrban PlanningHomebuyersReal Estate NewsAug 06, 2025
The 2025 Global Liveability Index by the Economist Intelligence Unit (EIU) assesses 173 major cities worldwide on factors such as stability, healthcare, culture and environment, education, and infrastructure. New Delhi ranked 120th, and Mumbai ranked 121st, both cities remain in the lower third of the global list, reflecting ongoing challenges in areas like healthcare, infrastructure, air quality, and public safety. Indian cities are making incremental improvements, but are still facing significant hurdles compared to global leaders in livability.
In the Indian context, livability is no longer an abstract term. It is backed by measurable parameters like infrastructure quality, access to healthcare and education, safety, environmental conditions, employment opportunities, and governance. The Ease of Living Index by the Ministry of Housing and Urban Affairs reflects this approach, offering valuable insights into how cities perform in delivering real quality of life to their citizens. For 2025, Bangalore and Pune ranked first and second, respectively, as the most livable cities in India in the Ease of Living Index, reflecting strong performance in areas like infrastructure, environment, and quality of life.
From a developer’s point of view, aligning with livability goals is not only socially responsible but also commercially sound. Cities and neighbourhoods with high livability scores tend to show stronger property value appreciation and buyer confidence. Buyers are now willing to invest more in areas that offer superior air quality, green spaces, better connectivity, clean water, and efficient waste management, even if it means stretching their budget.
The pandemic has further accelerated this shift. Homebuyers now prioritise wellness, open areas, access to nature, and proximity to quality healthcare. The social fabric of a neighbourhood, whether it supports community living, safety, and recreational engagement, plays a defining role in decision-making. This evolving mindset is also pushing developers to reimagine how projects are planned. Offering just a luxury finish isn’t enough; the entire ecosystem around the home must foster ease, health, security, and enrichment.
It’s time we move past the transactional approach to real estate and adopt a livability-first perspective. The Livability Index should be a central benchmark for homebuyers, developers, and urban planners. When real estate focuses on improving how people live, not just where they live, it leads to better cities, better communities, and better futures. And that’s a value far beyond the price tag.
Frequently Asked Questions
What is the Livability Index?
The Livability Index is a comprehensive measure that evaluates the quality of life in a city or neighborhood. It considers factors such as stability, healthcare, culture, environment, education, and infrastructure.
Why is the Livability Index important for real estate?
The Livability Index is important for real estate because it helps homebuyers and developers make more informed decisions. It goes beyond the price per square foot to consider the overall quality of life, which can lead to better property value appreciation and buyer confidence.
How do Indian cities rank in the Global Liveability Index?
In the 2025 Global Liveability Index, Indian cities like New Delhi and Mumbai ranked 120th and 121st, respectively, indicating significant challenges in areas such as healthcare, infrastructure, air quality, and public safety.
What factors are considered in the Ease of Living Index by the Ministry of Housing and Urban Affairs?
The Ease of Living Index considers factors such as infrastructure quality, access to healthcare and education, safety, environmental conditions, employment opportunities, and governance to evaluate the quality of life in Indian cities.
How has the pandemic influenced homebuyers' priorities?
The pandemic has accelerated the shift towards prioritizing wellness, open areas, access to nature, and proximity to quality healthcare. Homebuyers are now more focused on the overall ecosystem and social fabric of a neighborhood, which plays a crucial role in their decision-making.
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