Trump Set To Tower Over India's Uber-Luxury Real Estate
His assertive persona and a defiant streak in his childhood were a cause of concern for Donald Trump's parents, too. He was sent to boarding schools to get 'reformed'. The son returned a few years later to make a turnaround in the family's real estate business. Everything just became picture perfect for the family.
But years down the line, the son became a subject of discussion again. This time, politically sensitive people in general and psephologists in particular were conjecturing what would become of the world's super power if the “old brat” was elected the US President. While they might not have been able to reach a consensus, the results are out. Republican candidate Donald Trump, 69, the real estate mogul and the media personality, is set to swear in as the 45th President of the country, defeating his Democrat rival Hillary Clinton.
How well would the Trump card play in India and its real estate?
In January this year, Trump told a CNN journalist: “India is doing great. Nobody talks about it. I have big jobs going up in India. But, India is doing great.” As far as the real estate goes, things are looking up already.
Trump's first attempt to enter India real estate in 2011 was caught in regulatory hurdles; Trump Organization's deal with Mumbai-based Rohan Lifescapes for developing an ultra-luxury project at Hughes Road in south Mumbai fell through.
“It was purely a commercial decision to align as the Trump brand value is very high. We could easily command a premium based on this brand. However, delays in approvals and other regulatory issues resulted in us calling off the deal,” media had quoted Rohan Lifescapes Chairman Harresh Mehta as saying.
Trump is known to be persistent, and real estate developers in India were only too eager to cash in on his brand name.
The Trump Organisation signed pacts with Lodha Group in Mumbai in 2013, and with Panchshil Group in Pune in 2014, for two luxury residential projects that would be marketed as Trump Towers. Without investing a penny, Trump reportedly earned huge sums to let the two companies use his signature. But, the huge return on investment was big enough to make it all worth.
“We got a premium of more than 25 per cent for our apartments compared to the other projects nearby due to this association and it was a fruitful deal. Even the flat owners who leased their houses are getting more than Rs 5 lakh per month that is almost double than those in the neighbourhoods,” Panchshil Realty Director Sagar Chordia told media after signing the deal.
“The aim of Lodha Group's collaboration with the Trump Organization for the Trump Tower Mumbai is to raise the bar in every sense for luxury and services and set a new benchmark for luxury living in India, creating a tower that redefines the Mumbai skyline,” a company spokesperson has said about the tie-up.
“It has been my desire for many years to be involved in a great project in Mumbai, and it is my honour to bring the Trump lifestyles to the citizens of this truly global metropolis,” Trump, had said after signing the deals.
India's uber-luxury real estate space is likely to witness a complete turnaround as Trump would go for a brand expansion in the country, which Harvard University economists have projected to grow at an average of seven per cent through 2024, the fastest of any major economy. It would indeed be a win-win situation of Trump and the Indian real estate.