BackTrump plans to enter second homes segment in India
In January 2018, the fourth and last residential Trump Tower project was launched in Gurugram, which is being jointly developed by M3M Group. M3M’s under-construction Trump project, which sold about three units a month until last year, has more than doubled this year to seven units
PremiumBENGALURU: Close to four years after it launched its last luxury residential project in India, The Trump Organization is ready for a comeback. This time around, the New York-based business venture of former US president Donald Trump is looking to build not just its Trump Tower branded residences, but also venture into the booming ‘second homes’ space, which has attracted huge attention in the course of the pandemic.
Trump and Tribeca Developers, official representative of Trump Organization in India, plan to create gated communities of super luxury villas and farmhouses which are branded, fully serviced and amenitised, in property markets such as the National Capital Region, Bengaluru, Hyderabad, as well as Goa, Alibaug and Pavna (Maharashtra). Some of its new projects will also have golf courses and hotels.
Donald Trump Junior said India has become its largest residential market outside of the United States, through its partnership with Tribeca.
“…As with the US and most parts of the world, Indian residential real estate is witnessing a strong boom --- we are incredibly proud of the successes we have experienced over the years and look forward to once again raising the standard of luxury in India and beyond," Trump Junior said in an email response.
The Trump Organization's sabbatical in the country was prompted by Trump being elected president in January 2017, following which it had decided against entering any new overseas deals while he was in office. But it also coincided with a period when India’s luxury real estate market saw a slump, along with the overall slowdown in the sector, and developers focused on mid-market and budget homes to boost sales.
“Residential sales in the premium and luxury category have dramatically improved in the past year. We are selling 3000-6000 sq ft homes at ₹3-11 crore, across Trump and Tribeca’s projects in Mumbai, Pune, Bengaluru and Kolkata. Without exception, we have seen a strong revival in all projects," said Kalpesh Mehta, founder, Tribeca Developers.
Trump-Tribeca is close to signing two projects – a Trump Tower and another second home project. For the second homes projects, they may buy land outright, while for the tower project, it would be through a partnership with a local developer.
In January 2018, the fourth and last residential Trump Tower project was launched in Gurugram, which is being jointly developed by M3M Group. M3M’s under-construction Trump project, which sold about three units a month until last year, has more than doubled this year to seven units, said M3M director Pankaj Bansal.
The homes are priced at ₹8-9 crore each and the project has a March 2023 completion target.
The second home market in the country is poised to witness high traction in the near term, led by wealthy individuals, as they look to get away from cities in an ongoing pandemic.
Almost 70% of respondents want to invest in a second home priced at ₹2 crore or less, according to a recent survey by property advisory Savills India. The survey reveals that 57- 70% of the respondents want to buy a second home within two years.
Goa leads the domestic demand for second homeswith one-fifth of respondents interested in buying a second home here. There has been over 20% appreciation in land rates as compared to the pre-pandemic era.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
