US President Donald Trump recently criticized India’s high tariffs, warning of a potential US retaliation. In a sharp statement, Trump asserted that the existing trade system is unfair to the US, and vowed to introduce reciprocal tariffs to counteract what he perceives as protectionist policies by other nations, including India. While much of the discussion has focused on trade and manufacturing, the impact of these policies on Non-Resident Indian (NRI) investment in Indian real estate is an emerging concern.
Trump’s comments have sparked speculation about how his proposed tariffs could influence currency markets, investment sentiment, and the cost of real estate development in India. Historically, such trade tensions have led to fluctuations in the rupee’s value. If the US moves forward with retaliatory tariffs, the rupee could face further depreciation against the dollar. A weaker rupee would make Indian real estate more affordable for NRIs earning in dollars, potentially boosting property investments. However, prolonged depreciation could create challenges for repatriating profits, leading to increased scrutiny by financial regulators and dampening long-term investor confidence.
Avneesh Sood, Director, Eros Group, says, “Currency fluctuations are a double-edged sword for NRIs looking at Indian real estate. While a weaker rupee initially makes property purchases attractive, sustained volatility can complicate profit repatriation and create an uncertain investment climate.”
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Beyond currency concerns, the real estate sector could also be impacted by rising construction costs. Trump’s proposed tariffs could trigger countermeasures from India, potentially increasing the cost of raw materials such as steel, aluminum, and imported electrical components. If these tariffs escalate into a broader trade dispute, real estate developers may face higher input costs, leading to delays in under-construction projects and increased property prices. This could particularly affect the luxury and high-end segments, where imported fittings and technology play a crucial role. NRIs investing in pre-launch or under-construction properties could find themselves dealing with extended timelines and unexpected cost escalations.
Trump’s broader protectionist stance could also make it harder for NRIs to invest in the US real estate, leading them to reassess their global investment strategies. “If his administration introduces additional barriers for foreign buyers—such as increased taxation, stricter lending norms, or compliance costs—NRIs who previously preferred US properties might shift their focus back to India, where real estate policies have become more investor-friendly.
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