Trump moves to end birthright citizenship: Will it impact the Indian real estate market?

Trump moves to end birthright citizenship: Will it impact the Indian real estate market?


US President Donald Trump has signed an executive order to end automatic birthright citizenship for children of non-permanent residents. A few experts say this order is expected to encourage Indians to return and and invest in real estate back home rather than in the US.

A few experts say the birthright citizenship order signed by US president Donald Trump may encourage some Indians to return to India and invest in real estate back home. (Representational photo) (AP Photo/Evan Vucci)(AP)
A few experts say the birthright citizenship order signed by US president Donald Trump may encourage some Indians to return to India and invest in real estate back home. (Representational photo) (AP Photo/Evan Vucci)(AP)

“This is positive news for Indian real estate. It will be positive for Tier 1 real estate markets in India, especially Hyderabad, Bengaluru, Gurgaon, and Chennai, given that they are also technology/IT hubs that can provide opportunities to people coming back,” Sandeep Reddy, co-founder at Propstack and Zapkey, posted on LinkedIn.

This policy shift will encourage Indians to go to the US, like other countries such as the Middle East, to earn money, but eventually, they may return and settle in India, he added.

Another post by Hyderabad Real Estate & Infra on X noted that ‘folks on H1-B might think twice before buying houses in the US and might move most of their earnings to buy properties here.’

For new H1-B holders, the US will feel like just another Middle Eastern country, where you earn, return, and eventually settle down in India. This policy shift will have a huge impact, the X post noted.

“In case the parents are working in the US on a permanent H1-B visa, then it means their children born on American soil won’t become US citizens by birthright. This might lead them to redirect their investments to India for real estate opportunities. Out of the 10 clients we speak to, we already see 8-9 buyers anticipating buying an apartment in cities like Bengaluru and Hyderabad because they want to return to India after some years. And after the recent changes, we may see an increased positive sentiment,” Manjesh S Rao, Chief Real Estate Officer at BrokerInBlue, told HT.com.

“Some want to return to their cultural roots while others want to make use of their dollars to buy a luxury properties in Bengaluru and Hyderabad,” said Kiran Kumar, vice president of Hanu Reddy Realty.

There are a few legal experts, however, who believe this may not lead to a dramatic increase in the number of people on a work visa in the US to invest back home. “Property investment decisions are largely driven by appreciation and tax benefits in a particular country. Having said that, there may be a few Indians who will continue to invest in the US and hold a second property back home,” they said.

Avnish Sharma, Partner in the Real Estate practice group Khaitan & Co, believes this may push more H1-B visa holders to consider investing in India as a safety net. Having said that, people who already have a green card and are settled in the US may think of investing there and have a second home investment back in India, as has been the case all along. It will not have a major impact on the real estate investment sentiment.

As per statista.com, the proportion of Indian buyers among foreign residential property buyers in the United States fluctuated between 2011 and 2024. In 2024, almost 10% of foreign buyers of property in the US hailed from India, making Indian buyers the fourth largest foreign buyer group in that year and registering the highest share of Indian buyers since 2011. In 2024, Chinese buyers were responsible for 11% of all foreign sales.

What does the executive order say?

As per the executive order, children born in the US will no longer be recognised as citizens if their father is not a US citizen or lawful permanent resident and their mother is either in the country illegally or present on a temporary visa, such as a student, work, or tourist visa.

The executive order effectively revokes the automatic citizenship granted to children born to parents who are on temporary work visas (like H-1B) or those awaiting green cards.

The change, set to take effect in 30 days, targets automatic citizenship for children of parents unlawfully or temporarily residing in the country. Immigration advocates have responded by filing a lawsuit on Jan 20.



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