Trump Ends Birthright Citizenship: Will This Impact Real Estate Investments For NRIs?

Shortly after taking oath as the 47th president of the United States, Donald Trump ruled out certain executive orders that not only shocked the residents of the USA but also the world. One of the most contested ones includes Trump’s move to end birthright citizenship as part of his hardline anti-immigration agenda. A part of the concern is whether such a move could affect the real estate investments of Non-Resident Indians (NRIs) or how this could shape the real estate sentiment of the people.

What was the Birthright Citizenship Rule?

Trump’s decision marks a significant challenge to the 14th Amendment, which has upheld the principle of birthright citizenship for over 150 years.

The order has already sparked controversy and legal battles as it aims to end automatic citizenship granted to children born on American soil to undocumented immigrants and some temporary visa holders.

Starting February 19, 2025, children born in the US to parents without lawful permanent resident status or US citizenship will no longer qualify for citizenship.

For NRI, particularly those living in the U.S. on temporary visas like H1-B or student visas, this change raises a big question: How might this impact their plans, particularly when it comes to real estate investments?

Starting February 19, 2025, children born in the US to parents without lawful permanent resident status or US citizenship will no longer qualify for citizenship.

For NRI, particularly those living in the U.S. on temporary visas like H1-B or student visas, this change raises a big question: How might this impact their plans, particularly when it comes to real estate investments?

Will there be an immediate impact?

The short answer is no. You see, at its core, this new policy doesn’t change the fact that anyone, regardless of immigration status can buy property in the United States. Says Ravi Shankar Singh, Managing Director of Residential Transaction Services at Colliers India, “Owning real estate in the U.S. does not require citizenship. So, from a purely legal standpoint, NRIs do not need to panic about their property investment in the U.S.

But the bigger picture should also be taken into consideration. Singh notes that this shift in policy could accelerate a trend that’s already been growing among NRIs, investing in real estate in India. He explains that many NRIs have been purchasing property in India at an increasing rate, primarily driven by three factors;

- Wanting to stay connected to their roots

- Have a confidence in India’s economic growth

- Need for a safety net in uncertain times

Adds Rishi Tiwari, chief business officer at Square Yards, “This new policy might cause many immigrant families to rethink their long-term strategies.”

Tiwani opines that the idea of earning abroad but eventually settling in India might resonate more strongly now for many NRIs. Moreover, this change in the sentiment may seem particularly pronounced among H1-B visa holders as some of them already face challenges with long wait times for green cards and other uncertainties.

What Happens Next?

It’s important to remember that Trump’s executive order is not the final word. Legal challenges have already been filed by multiple state attorneys general and organisations like the ACLU, which argue that the order violates the Constitution. Until these cases are resolved, the long-term impact of the policy remains uncertain.

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