Zerodha’s Co-Founder Nithin Kamath Reemphasizes Linking Property Prices to AQI Amidst Bryan Johnson Controversy

Nithin Kamath, the co-founder of Zerodha, has once again reemphasized the unconventional idea of  linking real estate prices to air quality index (AQI) levels. His stance draws attention to how air pollution, a growing concern in urban areas, could impact both public health and the housing market. The idea was highlighted by him after Biotech entrepreneur Bryan Johnson, known for his extreme longevity experiments, cut short his conversation with his brother during a recent WTF podcast. During the podcast, Johnson, who wore a face mask, even joked about the air. 

Johnson noted that the room’s Air Quality Index (AQI) was 130, with PM2.5 levels at 75 µg/m³—comparable to smoking 3.4 cigarettes a day. On his third day in India, he experienced skin irritation, along with burning sensations in his eyes and throat due to air pollution. He observed that despite the well-documented health risks, air pollution seemed widely accepted, with people continuing outdoor activities without masks, including young children exposed from birth.

Reemphasizing Property Pricing with AQI Level of City

This is not the first time Nithin Kamath has suggested linking environmental factors to economic decisions. In November 2024, he proposed that property prices should reflect air and water quality, arguing that homes in highly polluted areas should be priced lower to account for the associated health risks and declining living standards. With cities like Delhi, Mumbai, and Bengaluru facing severe air pollution, Kamath highlighted the urgent need for stronger action, noting that despite widespread awareness, efforts to combat pollution remain insufficient.

The Proposition: How Air Quality Could Affect Property Prices?

Kamath's proposal is simple, areas with poor air quality should see a reduction in property prices. He argued that residents in these areas face higher risks of health issues like respiratory diseases and even cancer. Kamath’s viewpoint suggests that individuals living in areas with high pollution are effectively accepting these risks, and property prices should reflect the potential health hazards. By connecting air quality with property prices, Kamath believes it would create an incentive for people to live in areas with better air quality, thereby encouraging healthier living conditions.

This idea was shared by Kamath on social media, where he stated, "Shouldn't property prices be linked to AQI? The higher the AQI, the lower the real estate prices should be." He continued by stating that poor air quality areas should see lower rents and property prices, and conversely, areas with cleaner air should have higher property values.

A Personal Experience: Kamath's Encounter with Poor Air Quality

Kamath’s views were shaped further after a conversation with Bryan Johnson, an entrepreneur focused on age-reversal, who expressed his belief that air quality issues were more widespread than Kamath had originally thought. Prior to this, Kamath believed that Delhi was the only city in India severely impacted by air pollution, and only in winter months. However, after meeting Johnson, Kamath realized that air quality concerns were not limited to Delhi or specific seasons.

To test his assumptions, Kamath tested the air quality at his office in J.P. Nagar, a quieter part of Bengaluru. He was surprised to see that the AQI there was above 120, a level considered unhealthy for sensitive individuals. Kamath noted that the situation could be far worse in more densely populated and busy parts of the city. This experience further confirmed that air quality in urban areas, even outside major cities like Delhi, is often subpar.

Kamath also tested the air quality indoors at a sea-facing apartment in Mumbai's Bandra and found that it exceeded 160—well into the "unhealthy" category. He expressed concern about how much worse the air quality might be in busier parts of the city, where pollution is often compounded by heavy traffic and ongoing construction.  

Kamath’s concerns about air quality are not limited to India. He contrasted the air quality in Indian cities with that of cities in Europe and the United States, where AQIs typically remain below 50, a level considered safe for long-term exposure. The stark contrast in air quality between these regions made Kamath reflect on the potential long-term health impacts of polluted air. Kamath suggested that the difference in air quality between India and these other regions underscores the need for action to improve air quality and health outcomes.

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Kamath’s Call to Action: Improving Air Quality and Public Health

Kamath stressed that access to clean air is a fundamental right, similar to access to clean water. However, unlike water, which can be filtered and treated, air pollution is more difficult to control and mitigate. Kamath expressed frustration over the fact that polluted air has become a part of daily life in many urban centers, despite the severe health consequences.

Kamath’s call to action extends beyond the real estate sector. He urged researchers and healthcare providers to collaborate with Zerodha's Rainmatter organization to study the effects of poor air quality on public health. By examining the impact of long-term exposure to polluted air, Kamath believes that a greater understanding of the issue can lead to practical solutions to improve air quality.

Zerodha's Rainmatter Organization and its Role in Research

Rainmatter, Zerodha’s social impact initiative, could play a key role in supporting research and driving policy change regarding air quality. Kamath’s idea involves working with hospitals and researchers to study the long-term effects of air pollution on the population, particularly in urban centers where pollution levels are highest. The research findings could then be used to advocate for better air quality regulations and public health initiatives.

In addition, Kamath proposed that real estate pricing could be adjusted based on air quality. He suggested that areas with high pollution could offer discounts on property prices to compensate for the health risks posed by poor air quality. This proposal aligns with Kamath’s broader vision of integrating environmental considerations into urban planning and real estate development.

Real Estate Experts' Response: Market Forces and Environmental Concerns

While Kamath’s ideas have captured attention, many real estate experts have responded with skepticism. The real estate market, they argue, is driven by factors such as demand, supply, infrastructure, and connectivity. These factors, they contend, play a much more significant role in determining property prices than environmental concerns like air quality.

For example, land scarcity, access to key business hubs, and well-developed infrastructure are some of the primary drivers of property values. Experts also pointed out that government-set guidance values or circle rates are typically the standards used to determine property prices, and these rates are not usually influenced by air quality.

Additionally, environmental assets, while important, are not typically the primary factors that influence real estate pricing. Factors such as location, amenities, and proximity to essential services are often seen as far more impactful than air quality.

The Role of Policy and Regulation in Real Estate Pricing

One potential challenge to Kamath's idea is the difficulty of implementing a system where air quality directly influences property prices. Introducing such a model could require significant changes to property valuation processes and real estate market dynamics. Moreover, experts argue that linking air quality to property prices could discourage investment in areas that need development or infrastructure improvements, potentially hindering urban growth and development in those regions.

The Future of Air Quality and Property Prices

While Kamath’s suggestion may not gain immediate traction within the real estate community, it does raise important questions about the role of air quality in urban development. As cities continue to expand and pollution levels rise, the connection between environmental quality and real estate prices could become a more pressing issue.

Kamath’s proposal challenges the traditional view that property prices are driven solely by economic factors such as supply, demand, and infrastructure. Instead, he advocates for a more integrated approach that takes into account the environmental and health impacts of living in polluted areas. As awareness of air pollution grows, the idea of linking property prices to air quality could become an important part of future urban planning discussions.

Ultimately, while Kamath’s proposal may be ambitious, it opens up a conversation about how urban planning and real estate development can evolve to prioritize both environmental quality and the well-being of residents. If cities are to thrive in the future, balancing growth with environmental sustainability will be a crucial challenge.

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