Clean Air & Clear Investment: How Dehradun’s AQI is Driving Real Estate Demand

By Manit Sethi

Post-pandemic, the definition of “quality living” has taken on a new meaning. It’s no longer just about big homes or fancy amenities; it’s about breathing easy. As metros like Delhi and Gurugram continue to battle AQI levels ranging from 250 to 400 and beyond, many homebuyers are looking toward cities where clean air isn’t a luxury but a daily reality.

Dehradun, with its verdant surroundings and relatively cleaner AQI, is emerging as one such haven. Once known mainly as a quiet hill gateway, it is now being reimagined as a wellness city, where environmental health and real estate value go hand in hand.

Clean air has quietly become the new symbol of luxury. According to a report, environmental quality, particularly air quality index (AQI), has become a critical factor in property selection for 65 per cent of urban Indian homebuyers. This shift in priorities is most evident during winter months, especially around Diwali, when air pollution reaches alarming levels. More and more buyers from Delhi-NCR, Chandigarh, and even Mumbai are turning their attention to Dehradun, drawn by the promise of open skies and a gentler rhythm of life. For some, it’s the perfect second home or a peaceful place to retire; for others, it’s an escape from the daily smog and chaos of urban living.

With its green cover, mountain views, and easy access to Mussoorie and Rishikesh, Dehradun offers a blend of comfort, connection with nature, and a sense of calm that’s becoming increasingly rare. Besides, recently, the Uttarakhand Government has increased circle rates for properties across the state by 9 to 22 per cent, with an average hike of around 15 per cent in most areas. The revision, approved two years after the last increase in 2023, comes amid a surge in construction activity and growing land demand.

According to the reports, Dehradun’s Rajpur Road continues to be the city’s most expensive locality, with land market rates now ranging between INR 2,50,000 and INR 3,00,000 per square metre. This development comes when Dehradun consistently records an AQI far below that of major metros, translating into measurable real estate momentum.

Further, property registrations and enquiries have risen steadily, with several developers reporting double-digit growth in both demand and prices. Micro-markets like Sahastradhara Road, Canal Road, and Malsi have emerged as hotspots, attracting a mix of end-users and investors.

Developers are reading the signs of this changing demand. Many new projects in Dehradun are weaving sustainability into their very design; from rainwater harvesting systems and solar-powered lighting to landscaped greens that double as natural air filters. Homes are being planned to breathe, complementing Dehradun’s natural identity. Luxury villas and plotted communities, especially those targeting NCR buyers, are being marketed not only as serene retreats but as long-term investments in health and harmony.

What’s further fueling this shift is Dehradun’s growing ease of access. The upcoming Delhi–Dehradun Expressway is set to cut travel time to under three hours, making weekend commutes and remote working far more practical. Jolly Grant Airport has also seen upgraded connectivity, linking the city more seamlessly to metros like Mumbai, Bengaluru, and Lucknow. Alongside, Smart City initiatives are reshaping local infrastructure, improving roads, drainage, and public spaces. Together, these projects are transforming Dehradun from a charming getaway into an accessible wellness capital for North India.

Thus, it’s clear that clean air is no longer just an environmental concern but an economic asset. The link between healthier surroundings and higher real estate value is becoming unmistakable, and Dehradun is leading this quiet but powerful shift. As one of India’s emerging ‘eco-premium’ cities, it’s proving that quality of life can, in fact, drive capital growth. In a time when many urban centres are battling pollution and congestion, Dehradun’s greatest strength lies in what it has preserved — its natural balance.

The author is Director, Excentia Infra

DISCLAIMER: The views expressed in the above piece are personal and solely those of the writer. They do not necessarily reflect Realty & More’s views.