Will Trump's US election victory boost luxury home prices in India?

US election 2024: As the US gears up for the elections on November 5, the Indian real estate sector is closely monitoring the potential implications of Donald Trump's electoral prospects. Trump's brand, particularly represented by the Trump Towers, has already made a notable impact on the luxury property market, and election results could further influence demand for high-end real estate in India.

Behind the Trump brand

However, the relationship between Trump and the luxury properties bearing his name is more complex than it appears. While Trump Towers are recognised for their opulent design, they are not developed directly by Trump's organisation. Instead, local developers collaborate with the Trump Organisation, paying a licencing fee of 3-4 per cent on each sale to use the Trump brand.

These developers maintain the luxurious aesthetic associated with Trump, often opting for striking glass facades and black-and-gold exteriors that resonate with the brand's identity. Currently, completed Trump Towers exist in Pune and Mumbai, with additional projects underway in Gurugram and Kolkata. The price range for these high-end units starts at Rs 10.40 crore and can soar up to Rs 19.05 crore, as per property portals like 99acres and housing.

Trump's strategic Indian debut

Trump's entry into the Indian market began in 2012 when he partnered with Tribeca Developers, granting them exclusive rights to develop Trump-branded properties. This move capitalised on the rising demand for luxury real estate, leveraging the global recognition of the Trump brand to appeal to affluent buyers in India.

Recent market trends highlight a significant shift in buyer preferences. In the first half of 2024, properties priced above Rs 1 crore accounted for 41 per cent of total sales, up from 30 per cent in the same period the previous year. This growth indicates an increasing appetite for high-end properties, characterised by modern amenities, unique designs, and superior materials.

Trump’s luxury brand has drawn high-net-worth individuals and non-resident Indians (NRIs) in search of properties that exude sophistication and exclusivity. The demand remains strong, with high-profile buyers, including Bollywood actors, investing in units within these iconic towers.