Donald Trump's Birthright Citizenship Order: Potential Impact on Indian Real Estate Market

US President Donald Trump’s recent executive order to end automatic birthright citizenship for children of non-permanent residents has raised questions about its potential impact on the Indian real estate market. Experts suggest that the policy shift may encourage more Indians to return home and invest in real estate, especially in Tier 1 cities, rather than continuing investments in the US.

Sandeep Reddy, co-founder of Propstack and Zapkey, highlighted that this change could prove beneficial for India's real estate sector, particularly in cities like Hyderabad, Bengaluru, Gurgaon, and Chennai, which are prominent IT hubs. “This policy will likely encourage Indians working abroad to eventually return to India, where they can invest in real estate and contribute to growth,” he said.

Ravi Shankar Singh, Managing Director at Colliers India, explained that while the new rule may cause concern among resident Indians, it’s important to note that buying and selling real estate in the US doesn’t require citizenship. However, he noted a growing trend of Non-Resident Indians (NRIs) investing in Indian real estate, driven by a desire to stay connected to their roots, confidence in India’s economic growth, and concerns about shifting visa policies in the US.

Manjesh S Rao, Chief Real Estate Officer at BrokerInBlue, echoed similar sentiments, saying that H1-B visa holders might reconsider their real estate investments due to the change in citizenship laws. “Many of our clients are already looking at Bengaluru and Hyderabad for real estate investments, and we may see even greater interest following these policy shifts,” Rao said.

Experts also pointed out that while the order may not lead to a dramatic spike in investments, it could serve as a catalyst for those with ties to India to consider buying property as a backup plan. Kiran Kumar, Vice President of Hanu Reddy Realty, noted that some NRIs are keen to invest in luxury properties in cities like Bengaluru and Hyderabad due to their ties to India and the desire to secure a solid investment.

However, legal experts believe the policy change may not have an immediate, dramatic impact on investment patterns. “Investment decisions are still largely influenced by factors such as appreciation potential and tax benefits in specific markets. While some may shift their focus to India, others will continue to invest in the US while holding properties in India,” they said.

Avnish Sharma, Partner at Khaitan & Co., suggested that the new policy may prompt more H1-B visa holders to explore Indian real estate investments as a safety net, though those with established green cards in the US may not change their investment strategies. Overall, experts believe that while the shift in birthright citizenship laws could influence some NRIs' decisions, it is unlikely to drastically alter the real estate market in India.