US President Donald Trump speaks to the press upon arrival at Joint Base Andrews in Maryland on February 2, 2025, as he returns to the White House from Florida. Photo: AFP
As the political landscape in the US continues to spark debate, two leading property experts have shared their perspectives on President Donald Trump and his impact on the property sector.
With Trump’s deep-rooted ties to the industry and his business-centric policies, opinions among property executives remain divided. Some view his tenure as a period of economic growth and deregulation, while others highlight concerns over volatility and policy uncertainty. Here’s what these two industry leaders had to say about Trump and his influence on the property market.
Adrian Goslett the regional director and CEO of RE/MAX of Southern Africa:
As the world reflects on the political and economic implications of Donald Trump’s presidency, questions arise regarding the ripple effects on markets far beyond the US. In South Africa, the property market is one of the sectors that could see both direct and indirect influence from the policies and global economic shifts triggered by the new US president.
According to , global politics always has an impact on local markets. While the South African property market is predominantly influenced by domestic factors such as interest rates, inflation, and local investor confidence, the broader international landscape—particularly US policies—can’t be ignored.
One of the key factors to consider is the strength of the rand against the US dollar. During Trump's presidency, economic policies aimed at "America First" often led to market volatility and fluctuations in the strength of emerging market currencies, including the rand. A weakened rand raises import costs and could drive inflation, leading to increased pressure on the Reserve Bank to adjust interest rates. Higher interest rates generally reduce affordability for homebuyers and dampen the overall demand for property.
However, there are potential upsides. Uncertainty on the global stage often drives high-net-worth individuals to seek property investments in stable markets. South Africa’s real estate sector offers attractive opportunities for foreign investors seeking value for money. This might mitigate some of the negative consequences of broader global economic challenges.
Ultimately, the local property market is shaped by a complex web of factors, and while Trump's policies may not have an immediate or dramatic impact, they might play an indirect role in how the local property market performs in the medium to long term.
Regardless of external influences, South African property remains an excellent long-term investment.
Giovanni Gaggia, the CEO of Real Estate Services:
As the world continues to analyse the political and economic repercussions of Donald Trump’s presidency, it is crucial to consider how his policies and global economic shifts could impact property markets beyond the US. In South Africa, the real estate sector, while primarily driven by local economic conditions, is not immune to global influences. Understanding these potential impacts can help investors and homeowners make informed decisions.
One of the primary ways Trump's presidency could affect the South African property market is through fluctuations in the rand against the US dollar. Historically, Trump’s "America First" economic policies led to market volatility, which often had ripple effects on emerging markets, including South Africa. A weaker rand makes imports more expensive, increasing inflationary pressure and prompting the South African Reserve Bank to consider interest rate hikes.
Higher interest rates could mean that borrowing becomes more expensive, making home loans less affordable for buyers. This could dampen demand in the property market, particularly among first-time buyers and middle-income earners who are more sensitive to rate changes.
Despite potential currency instability, Trump-era policies could also create investment opportunities in South Africa’s property market. Historically, global uncertainty has encouraged high-net-worth individuals to diversify their asset portfolios, including investments in real estate. South Africa’s property market remains attractive due to its relatively lower property prices compared to global standards and its potential for high returns on investment.
International investors, particularly those from the US and Europe, may seek refuge in stable and high-yield property markets. South Africa’s affordability and growing metropolitan hubs could position it as a viable option for those looking to hedge against global economic instability.
Trump’s policies on trade and economic relations had significant implications for emerging markets. If trade policies under his administration lead to reduced exports or economic slowdowns in key trading partners, this could have a knock-on effect on South Africa’s economy. A sluggish economy often translates into lower consumer confidence and reduced spending power, affecting the housing market negatively.
On the other hand, should US economic growth remain strong, there could be indirect benefits for South Africa. A robust US economy often leads to increased investment in emerging markets, providing a potential boost to local businesses and, by extension, the property sector.
Despite external influences, the South African property market has historically shown resilience. While currency fluctuations, inflation, and foreign investment trends are essential considerations, local factors such as government policies, infrastructure development, and employment rates play a more direct role in shaping the sector.
Ultimately, regardless of Trump's presidency and its potential international effects, South African real estate remains a solid long-term investment. Investors and homebuyers should remain focused on their financial objectives, staying informed about both local and global economic trends. Working with trusted real estate professionals can help navigate any uncertainties and capitalize on opportunities that arise in the market.
While Trump’s presidency may not have an immediate and dramatic impact on South Africa’s property market, it could indirectly influence market conditions through currency fluctuations, inflationary pressure, and foreign investment trends. By understanding these dynamics, buyers, sellers, and investors can make strategic decisions that ensure long-term success in real estate.
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