Trump's real estate brand booming in India despite political rift
What's the story
Despite Donald Trump's constant criticism of India, the country has become his biggest global market for real estate. The Trump Organization, which has 13 projects across six Indian cities, is raking in millions without much direct cash investment from the US president. The strategy mainly involves licensing out his name and reaping profits from brand hype.
Market dominance
India is Trump's biggest global market
India is the top global market for Trump's real estate brand, with more projects than any other country. The Trump Organization's strategy involves Indian developers constructing towers, offices, and golf courses under his name. In return, they pay licensing fees and sales royalties to the company. This way, Trump avoids huge capital risks while still reaping significant profits.
Project overview
Existing and upcoming projects here
The Trump Organization has four Trump Towers in India: Mumbai, Pune, Gurugram, and Kolkata. These cover about three million square feet. An additional eight million sq ft is under development in Noida, Hyderabad, Bengaluru among others. The existing towers are estimated to be worth around ₹7,500 crore, while upcoming projects are valued at around ₹15,000 crore.
Pricing strategy
Projects priced at a premium
Trump-branded projects in India are priced at a whopping 35% above local competitors. These include a luxury tower in Mumbai with Trump Card exclusives (for Trump golf club members) and an office tower and retail space project in Pune. Gurugram saw twin luxury towers and an office tower called Trump Residences sell out on day one, generating ₹3,250 crore.
Future prospects
Controversies surrounding Trump's projects in India
The Trump Organization has a luxury residential project in Kolkata and plans for golf courses, villas, as well as mega-projects in Noida, Hyderabad, Bengaluru, and Pune. However, Trump's deals with politically-connected Indian developers have raised alarms about conflict-of-interest in the US. The Pune project was also marred by a land acquisition probe.