Delhi is choking. Year after year, the air quality in the months following Diwali has been dwindling from dangerous to hazardous level. International clients are reportedly postponing and even cancelling their business trips to the region after checking the air quality. Big firms based out of NCR are considering to move their headquarters to elsewhere. Employees are looking for opportunities to relocate to other parts of country. No wonder, it is increasingly becoming difficult to live in NCR.
Seeing the scenario, you may be thinking that the market of Delhi real estate is in danger. Well, you are wrong.
On the contrary, Delhi real estate market is booming like ever. As per Prime Global Cities Index by property advisory Knight Frank, New Delhi has even moved up by one place and has been ranked as the ninth fastest-growing prime residential market.
The city has also been witnessing an uptick in the property prices in September quarter. The prime locations in the city including Greater Kailash, Vasant Vihar, Anand Niketan, Defence Colony and Green Park saw 4.4% y-o-y rise in residential prices to ₹33,511 per sq. ft in the September quarter.
It is clear that the impact of pollution on property demand in India, at least Delhi-NCR, is, well, almost negligible. It was perceived earlier that demand for inner-city housing will eventually go down with depreciating air quality while buyers will opt for peripheral areas with lesser pollution, also coined as pollution-induced outward migration.
However, urban dwellers seem to be unaffected by pollution levels and have been taking the change in its stride. Connectivity, affordability and employability of the place continue to rule the property prices.
Worsening air quality in Delhi may have a few minor effects on Delhi real estate sector. Commercial office spaces with high-end HVAC and air purification system will be preferred. And so will be the integrated housing projects with similar facilities apart from more green open spaces and sustainability features. Apart from that, Delhi residential market is not going to lose its sheen just due to air pollution, not anytime sooner.
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