Trade agreements are usually discussed in terms of exports, jobs, and macroeconomics. But the recent US-India deal, which rolled back punitive tariffs on Indian exports from nearly 50% to about 18%, has ripple effects that reach far into real estate. For India’s textile, chemicals, leather, and gems & jewelry sectors, the deal means better market access and fewer job losses. For the economy, it means reduced uncertainty, a steadier rupee, and stronger investor sentiment. And for real estate, it means capital inflows, confidence in commercial property, and stability in residential demand. Without this agreement, tariff-related stress could have slowed growth and dampened housing demand. With it, India’s property markets find themselves on firmer ground, supported by a macro cushion that extends beyond trade.
The Trade Deal and Its Immediate Impact
The rollback of tariffs is a significant win for India’s export-dependent industries. Textiles and apparel hubs, which had been grappling with job losses, now see a clearer path to recovery. Chemicals, leather, and gems & jewelry all sectors with deep employment linkages stand to benefit from better market access. Dr. Samantak Das, Chief Economist and Head, Research and REIS, India, JLL, explains, “The recent U.S.–India trade agreement, which rolled back punitive tariffs on Indian exports from around 50% to about 18%, is expected to ease macroeconomic uncertainty and improve investor sentiment, factors that will have positive ripple on exports and overall economic growth.” His point underscores how trade policy is not just about goods it’s about confidence, and confidence is the currency of markets.
The Real Estate Connection
At first glance, tariffs and housing may seem worlds apart. But the link is direct. Lower trade tensions strengthen the rupee, reduce volatility, and encourage foreign capital inflows. For commercial real estate, this means global investors are more willing to commit to Indian office assets, REITs, and long-term leasing. For residential markets, stronger exports translate into job stability in hubs like Surat (textiles), Tiruppur (apparel), and Jaipur (gems & jewelry). When jobs are secure, housing demand rises even in price-sensitive segments. Dr. Das adds: “Indirectly, benefits on India’s real estate market are undeniable. Lower trade tensions and a stronger currency support capital inflows and foreign investment confidence, which historically helped commercial and residential property markets.”
Commercial Real Estate Outlook
India’s office market has already been buoyed by GCC demand, with leasing hitting record highs in 2025. The tariff rollback adds another layer of resilience. Export-linked firms, particularly in textiles and chemicals, may expand operations, requiring more office and industrial space. Investors, reassured by reduced uncertainty, are likely to channel funds into Grade A office stock and REITs. With REIT penetration still at 20% of institutional real estate, the timing is crucial predictable trade flows and stronger currency stability make Indian office assets more attractive globally. Developers, too, will find confidence in planning new projects, knowing that macroeconomic winds are blowing in their favor.
Residential Ripple Effects
Residential real estate, especially in tier 2 and tier 3 cities, stands to gain indirectly. Export hubs often double as housing markets for workers and mid-level professionals. When tariffs were high, job losses loomed, dampening housing demand. With tariffs rolled back, employment prospects brighten, incomes stabilize, and housing affordability improves. Price-sensitive buyers who might have delayed purchases could re-enter the market. Developers in these regions may see renewed confidence, while metros benefit from overall sentiment uplift. The deal essentially secures the income base that sustains housing demand, ensuring that the property market doesn’t lose momentum in the face of global uncertainty.
The US-India trade agreement is more than a diplomatic win it’s a stabilizer for India’s economy. By easing export stress and strengthening investor sentiment, it indirectly supports the country’s real estate markets. Commercial property gains from capital inflows and leasing confidence, while residential demand benefits from job security and income stability. In a sector often buffeted by macroeconomic winds, this deal offers a rare tailwind. The message is simple: when trade flows smoothly, real estate stands taller.
