Call it a case of deft marketing, or an alarming sign of times to come, a canary down the coal mine that is the ambient air of major cities in India. Recognising that air pollution in major cities is turning almost fatal for some age groups and people with respiratory conditions, developers are now actively pitching better air quality as a major draw for homebuyers, and are even able to charge a small premium for it.
While much of the supply of such properties, which are often branded as "AQI homes", are coming from Tier-II markets such as Indore and Ahmedabad, some major cities are also getting in on the game, such as Pune. Developers in Pune, which is also facing severe air quality issues due to vehicular and construction-related pollution, as well as industrial pollution, are also ramping up measures in new projects that purportedly improves air quality in the surroundings.
"Greenery and clean air measures are definitely a consideration for buyers. They look at the size of garden and lawn areas, and are also willing to pay a premium for it, even though it is a small premium of around 2 percent. Buyers also prefer green areas to be on the ground, rather than on podium levels. That is why township projects in Pune are doing much better than individual projects," said Vineet Goyal, joint managing director of Kohinoor group, a Pune-based developer.
For city-centre and redevelopment projects as well, areas with extensive greenery are preferred in such cities. Goyal cited the example of Prabhat Road, which is located in the upscale Deccan Gymkhana area of Pune and is known for its greenery, gardens, and proximity to two of the city's multiple hills. He added that buyers are prepared to pay a premium on projects on that thoroughfare, compared to the surroundings.
What do such projects have
Besides Tier-II cities, and Pune, in major markets such as the Mumbai metropolitan region, Bengaluru, and others, projects on the edges of these cities are receiving traction, especially those located near the hilly edges of such cities, as well as major township projects that promise greenery, forested areas, and low-density layouts.
While such amenities have been part of major projects for long, better air quality has become a prime consideration for buyers choosing such projects, especially those with children and elders in their families.
Broadly, greenery is a major driver in projects that promise better air quality than in the rest of the city, or immediate surroundings. Besides greenery, measures such as wind corridors, for the uninterrupted flow of fresh air from the nearby green areas are also a priority, according to developers of such projects.
"2025 proved that India’s real estate momentum has shifted beyond the metros. We have designed native tree belts, natural wind corridors, dust reduction zones, and low-density layouts to create a measurable improvement in air quality. The market response has been exceptional. Madhuvan is selling at a clear premium compared to its micro market because families are now willing to pay more for scientifically designed clean air," said Manoj Dhanotiya, founder and CEO of MicroMitti, which is investing around Rs 400 crore towards the Madhuvan project in Indore, with more than 400 villas under development.
Some of these projects are also located in greenfield areas of the city, such as the GIFT City, on the edge of the Ahmedabad-Gandhinagar metropolitan area, where clean air quality has been built into the town planning measureds. In an interaction with Moneycontrol, Deep Vadodaria, managing director of Nila Spaces Ltd, said that much of the demand for his projects, such as Prana in the financial hub, now comes from outside the region and Gujarat.
"We thought about how to optimise outdoor air, rather than not let any outside air come into the premises, and how to use fresh air after filtering. Such changes are coming about because climate aware people are asking the right questions. Till 2023, around 70 percent of our demand came from Ahmedabad and Gujarat. After 2023, as GIFT City alcohol rules changed, and after the increase in property prices, now 70 percent of the demand comes from outside the state," Vadodaria said, expecting a premium of 10-20 percent for the Prana project, compared to its competitors in the area.
Vadodaria, however, conceded that such measures, such as leveraging technology to clean air for residents in small pockets, is not the solution.
"Air purifiers are not the solution to the air quality crisis. This is in fact the last solution. What is needed is for people to keep asking questions," he remarked.
Industry experts seem to agree, with similar pitches by property developers prevalent in terms of other urban infrastructure crises, such as the persistent water supply issues in Bengaluru, or the toxic air quality in the National Capital Region. However, the ability of individual developers to substantially impact air quality issues is still a far-fetched dream.
"It is unfortunate that clean air has become an amenity. Developers often want to assure buyers that they are in better position than the others in the face of such issues, such as water shortages or air quality issues like we are seeing in Delhi. Developers may give free air filters in the apartment, or can ensure that one micro-market has slightly better air quality compared to other areas. However, air quality is not something that can be addressed by one enterprise. It requires the collective efforts of the government and a host of other stakeholders," said Vivek Rathi, national director of research, Knight Frank India.
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