Trump in the White House benefits the Portuguese Real Estate Market

Donald Trump as president of the United States of America can benefit some international real estate markets and according to international experts Portugal is one of the them.

11 Nov 2016 min de leitura

Donald Trump as president of the United States of America can benefit some international real estate markets and according to international experts Portugal is one of the them.

"Trump's victory has direct implications in the international real estate market, according to the English media, Property Wire, a specialist in the real estate market. "Real estate markets around the world may benefit from Donald Trump's election as the next president of the United States, but much will depend on how the country's economy and the dollar behave," this the starting point for the analysis of several experts.
According to the property and construction specialist and partner of the Berwin Leighton Paisner international law firm, Adriano Amorese, presidential elections traditionally result in a dollar dip that gets back on the line once the new president takes office in the New Year.The expert believes that a prolonged dip in the value of the dollar, could lead to a slowdown in the US investment activity in the UK real estate market. "Presidential elections traditionally result in a dip in the dollar value, which corrects once the new president is elected and stability returns." However, a Trump victory is a shocking thing for the political system. It could result in an extended period Of uncertainty and downward pressure on the dollar. "
"The good news is that the significant decline in the value of the pound due to Brexit should mean that the dollar should drop further before that begins to affect transatlantic investment decisions," he explained.

Market turmoil and dollar weakening

However, Camilla Dell, managing partner of Black Brick real estate agency, believes that market turmoil and the weakening dollar will likely result in increased global investment in London's main central real estate market.
"We are already witnessing a flight to assets for a safe haven, such as prime property in London that has always been seen as a safe haven in turbulent times. We also believe that some wealthy Americans, particularly those most offended by Trump, may come To the UK as some of our American clients who have come before the election result, "she says.
Simon Tollit, director of sales at Sotheby's International Realty in central London, also revealed that there was an increase from US buyers wishing to buy in London's central market. "Investors do not like to buy in uncertain markets and Trump's victory means a change of party, so policy changes are much more likely." New York and London are historically rival real estate markets, which means that this outcome could influence Buyers to favor a purchase in London, "he added.

Australian real estate market is the one who can benefit the most

The Australian real estate market is the one that is most likely to benefit, as it is also considered a safe haven for real estate investors. However, it has more restrictions on foreign buyers than markets like the UK.
Trump's victory will push more foreign investors into the Australian real estate market, according to Nerida Conisbee, chief economist of the REA Group. "This makes investment in Australia more attractive to large investors and foreign institutions as well as private buyers of high net worth seeking to buy residential properties"

Portugal is another beneficiary

This expert also indicates that the results of the US elections may result in a change in the buying habits of the South Americans who traditionally bought, suggesting that Portugal could benefit. "South American investors, especially from Brazil, are now much more likely to avoid the usual favorite destinations like Miami and New York. With a flexible gold visa program and cheap prime real estate, Lisbon was already a strong candidate against Miami and a Trump presidency will only consolidate this trend. "
Historically, Americans have been major foreign buyers in the Canadian real estate market, especially in places like Muskoka, Ontario and Whistler, but Nerida Conisbee believes that a dip in the dollar will affect Canadian real estate prices and that the impact could last for years.
The expert also reveals that real estate markets in Nova Scotia and New Brunswick plunged as much as 60% after the 2008/2009 financial meltdown, when Americans withdrew in mass and some of those markets are still in the process or recovering, almost a decade later.
Although, for US real estate market policies outlined by Trump can be beneficial, such as tax cuts and infrastructure spending. "At the end of the day, the fundamentals underlying the US housing market are solid. We believe that a very significant external cause would be needed to derail the market, and even with Trump's victory it is not likely to be enough to shock the reverse of that progress, "said Michael Gately, director at Barings Real Estate Advisers at Property Wire."

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