Zerodha CEO Nithin Kamath Suggests Property Prices In Delhi Should Be Determined By Air Quality

Every year, after the Diwali celebrations, the pollution levels in India’s major cities, particularly in Delhi, reach alarming levels. This year is no different, with the Air Quality Index (AQI) fluctuating between ‘very poor’ and ‘severe’ categories in the Delhi-NCR region. In response to this environmental crisis, educational institutions in Noida and Ghaziabad have moved classes online.

But this isn’t just a Delhi problem. Other metropolitan areas, including Mumbai, Kolkata, Chennai, and Bengaluru, are also grappling with air pollution issues. The deteriorating quality of air in Indian cities is a problem that cannot be ignored anymore.

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Nithin Kamath, Founder and CEO of Zerodha, recently shared his thoughts on the severe pollution levels. He suggested that maybe economic factors could drive change. His idea is simple but intriguing: what if property prices were directly linked to air and water quality?

“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,” Kamath wrote in a post on X.

 

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A post shared by Nithin Kamath (@nithinkamath) 

Kamath’s logic is that if people saw a direct correlation between pollution and the value of their property, it might motivate collective efforts to improve environmental conditions. In theory, a reduction in property prices due to poor air quality could encourage property owners to invest in making their neighbourhoods cleaner, eventually leading to healthier cities.

“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.”

Have a look at this full post here:

Kamath’s post raises a crucial question: why aren’t we taking pollution seriously enough? If economic factors were considered, property owners would have a stronger reason to care about their surroundings, with homeowners coming together to solve the issue of pollution.

Imagine if the value of homes in upscale neighbourhoods dropped significantly due to poor air and water quality, it would certainly get the attention of property owners who might otherwise overlook environmental concerns.

Here’s how people responded to his suggestion:

As Delhi continues to make headlines for its toxic air, it’s essential to remember that the problem is not limited to one city. Indian urban centres need to take pollution seriously, and Kamath’s idea might be a step in the right direction.

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