Donald Trump has previously been a name synonymous with American realty and reality television. However, this maverick yet popular personality is now the 45th elected president of the United States of America. When asked if the Trump win will affect India, Mark Matthews of Bank Julius Baer & Co stated that India is indeed different from other Asian peers as there is political stability here. But that doesn’t mean the country will not be impacted with the US elections. Even though a few weeks have passed since the US election, there is still a palpable amount of uncertainty in global markets as to how this presidency will affect the global trade environment. This brings us to the most important question – How will Trump’s presidency affect the Indian real estate sector?
While we feel that it might still be too soon to make any precise forecasts on the full impact of Trump’s triumph in the US presidential election and its influence on Indian real estate, it is safe to say that India as well as other APAC countries have witnessed significant unpredictability in currencies since the news of the victory was revealed. Currently, the US dollar is down and hence we can expect the Indian rupee to see some instability too.
According to our experts, for commercial real estate investors currency gains might work as a catalyst to prompt global investors to execute exit strategies on cross-border investments. It is, in fact a great time for large, established investors to instrument new investment strategies now, before the market picks up again. Commercial real estate in India could stand to gain if investments gain momentum.
Coming to the speculated negative aspects of Trump’s victory, the very vocal aversion to outsourcing of jobs to developing countries can spell problems for Indian developers. Trump’s win can have a massive effect on outsourcing to countries like India. The country’s commercial real estate sector depends a lot on demand for office and call center space generated by this sector.
But, like we said earlier, it is still too soon to make any concrete assumptions. We can only wait and see what interesting reforms this multi-faceted and truly one-of-a-kind president comes up with.