What does Trump mean for property?

Political outsider Donald Trump’s US election victory has rocked global markets this morning. The FTSE 100 opened 2% down, Japan’s stock market index plunged 919 points and the dollar fell 3% against the yen. What does the property developer cum reality TV star’s victory mean for the UK and global real estate market? Comment: What a Trump presidency means for business Analysis: Race for the White House Knight Frank head of research Liam Bailey said the result presented “challenges and opportunities” for global property markets. “While there is some uncertainty regarding the economic impact of President Trump’s policies, the US will remain the critical global source and destination for property investment flows,” he said. “It is important to remember that almost alone of all developed economies the US has largely shaken off the impact of the global financial crisis and has led the way to improved economic growth. “The business environment in the US and innovation in business services and technology providers based in the US have helped to drive property market demand globally – it is an incredibly strong platform to build from.” JLL’s UK residential forecasts have not changed “in a fundamental way” following the election result, the firm’s head of residential research Adam Challis said. However, he said there could be an upside to London residential investment and prime purchases that are more exposed to international demand. He added:  “The broader impact of a global economic drag could plague on the UK residential markets over the medium-term, but this will depend on what type of leader Trump chooses to be.” Naomi Heaton, chief executive of London Central Portfolio, said she thought London would be seen even more as a “safe haven” by international investors following the election result. She said: “In times of global political and economic uncertainty, people move to safe haven assets. “We already saw that movement to gold, that’s exactly what we saw during the global credit squeeze in 2009 and what we also know is that central London [property] tracks gold quite closely when there is this kind of uncertainty, when people are trying to derisk.” The UK property industry has been reacting to the news on Twitter this morning: Mike Ingall, chief executive of Allied London: https://twitter.com/michaelingall/status/796184673491812352 Tim Heatley, co-founder of Capital & Centric https://twitter.com/MrTimHeatley/status/796250883617079297 Pat Gunne, Green REIT chief executive https://twitter.com/patgunne/status/796253429739954176 • To send feedback, e-mail louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette