Is Pollution Hazardous To Real Estate Health?

The pricing of real estate is more connected to the locations and the facilities they have to offer along with commute times for the working population rather than the pollution level, notes Prashant Thakur, Director and Head (Research), ANAROCK Group

The air quality of the National Capital Region (NCR) has been hovering at ‘severe pollution’ levels. Delhi has become the de facto ‘poster boy’ of urban pollution in the country and Skymet that provides weather forecasting services has identified it as the world’s most polluted city this month. However, this leading weather analysis and forecast agency also confirmed that six of the world’s 10 ‘most polluted’ cities are in India. It would be logical to assume that severe air pollution impacts a region’s overall property market. However, this is not really the case. In fact, the impact of pollution on property demand in India is almost negligible.

Adaptability of Cities

Pollution spiking in Delhi-NCR happens largely during the onset of winter, which coincides with agricultural stubble burning in nearby states. A perennial ‘high alert’ throughout the year would have more serious implications on real estate, but it is a seasonal phenomenon. With periods of respite, cities are amazingly adaptable. Mumbai unerringly experiences floods during the monsoons, yet property prices there remain impervious to this annual event. Some recent alarming research warns that large coastal chunks of Mumbai will be permanently inundated by the year 2050 on account of the rising sea levels.