The Impact of the 2024 U.S. Election on the Dollar and Global Real Estate Markets

Remember the last time you stood at a crossroads, wondering which path would lead to the best outcome? That’s kind of what the real estate market feels like right now. With the recent U.S. election results, we’re seeing major shifts that impact not just Americans, but investors all around the world.

Former President Donald Trump is back, and with him comes a wave of economic policies that are bound to shake up the market. What does this mean for the dollar, for real estate, and most importantly, for investors like you and me?

Let’s dive in.

The Dollar's Trajectory Post 2024 U.S Election

With Trump’s return, we’re seeing familiar moves towards protectionism—higher tariffs, stricter trade policies—which historically leads to a stronger dollar. Investors tend to flock towards the dollar when uncertainty rises, and this election is no different. The Bloomberg Dollar Spot Index is already showing gains, signaling optimism about the dollar’s stability.

A stronger dollar is a double-edged sword for real estate investors. On one hand, it means U.S. buyers get more bang for their buck overseas. Properties in London, Dubai, or Italy just became more affordable for those holding dollars. On the other hand, it also means that international buyers looking at U.S. properties are now facing steeper costs.

Opportunities for U.S. Buyers in Overseas Markets

If you’re a U.S.-based investor, now is the time to keep an eye on overseas markets:

• London and Dubai: With the dollar gaining strength, properties in these luxury markets are becoming relatively cheaper. U.S. buyers have a competitive advantage here, especially in high-end real estate where price quotes are in weaker local currencies.
• Southern Italy and Montenegro: Looking for a vacation home or a rental investment? Regions like southern Italy or emerging markets like Montenegro present appealing opportunities, made even sweeter by the favorable exchange rate.

This strengthened purchasing power means more opportunities to diversify portfolios, acquire vacation properties, or make long-term investments in high-value markets.

Challenges for International Buyers in the U.S. Market

For international buyers, the landscape is shifting, and not necessarily in their favor:

• Higher Costs: A strong dollar means that foreign buyers now need to stretch their budgets further to afford U.S. properties. Recent data shows a decline in foreign investment in U.S. real estate, with purchases down by 36% compared to previous years.
• Regulatory Hurdles: Added to this is the evolving regulatory environment in the U.S., which might introduce new barriers for foreign investors.

However, these dynamics could provide opportunities for domestic investors, as reduced competition from international buyers could lead to more balanced pricing in certain segments.

Key Markets to Watch

• London: Expect an uptick in American buyers looking to capitalize on favorable rates. Real estate agents and developers here should highlight the value proposition to U.S. investors—emphasizing stability and long-term growth potential.
• Dubai: Known for luxury, Dubai is about to get more accessible for American buyers. Developers focusing on foreign-friendly projects may see an influx of U.S. clients interested in high-end residences.
• Italy and Montenegro: Both regions are likely to see a surge in interest from U.S. buyers looking for lifestyle investments. For agents, this is a great time to highlight the cultural appeal and potential rental income opportunities of these properties.
• Bali and Malaysia: Emerging markets like Bali and Malaysia are attracting U.S. investors seeking high returns and diversification. Bali's real estate market is experiencing growth, driven by strong tourism recovery and increasing demand for high-end real estate. Malaysia's property market is also on a trajectory of transformation, with technology driving innovation and sustainability becoming a focal point.

Conclusion

We’re stepping into a new chapter of economic and real estate dynamics—one where both opportunities and challenges coexist. For U.S. buyers, the strengthened dollar presents a unique chance to expand portfolios internationally, while international buyers face higher costs and more obstacles in the U.S. market.

Navigating this landscape requires strategic thinking, a bit of boldness, and an understanding of how these shifts play into the bigger picture. As investors, it’s up to us to decide how to best leverage these changes.

What’s your strategy for navigating this evolving market? Are you considering expanding your portfolio internationally, or doubling down domestically? Share your thoughts—let’s learn from each other and make the most of what’s ahead!