Many of those who live nearby took offense to Trump's description of the location, but others said that the former New York real estate mogul makes a point.
The shiny embassy is located in Nine Elms, a massive redevelopment area on the south banks of the river Thames. The embassy is significantly larger than the old embassy, and is slightly closer to Westminster.
In interviews on Tuesday outside the embassy and in the surrounding area, it quickly became clear that one person's "off-location" is another person's "up-and-coming."
On Tuesday morning, the first day the embassy officially opened to the public, a small queue formed outside the entrance for consular services. A few yards away, dozens of construction workers in yellow vests and hard hats were hammering, drilling and banging.
"I can see why someone would say it's [an] off location," Sheron Cloyd, a 41-year-old project manager from New York said over the sound of a chain saw. "It's not in the city center, it's south of the river."
But Cloyd, who also lives south of the river - one of London's physical dividing lines - said that the area near the embassy has become trendy over the last few years.
"When I first moved here, someone said Vauxhall used to be horrible. Not any more. It's very expensive and trendy, kind of like Brooklyn - and as someone from Brooklyn, I would know," he said. Like others standing in the line, he got off at the Vauxhall subway station and within a few minutes, noticed a giant U.S. flag flapping in the wind. It's about a 10-minute walk to the embassy.
The old embassy was located in Mayfair, one of London's most exclusive neighborhoods, and in a square steeped in American history.
But if Mayfair is the place of today and yesterday, Nine Elms is arguably the place of tomorrow.
"This is a lovely, large store. All that's missing is the people," said a sales clerk in a nearby grocery store.
"The new embassy is the centrepiece of the vast Euro 15bn Nine Elms development that is at risk of being overbuilt and under thought. Some agents are already warning that the 20,000 homes will become a wasteland of empty buy-to-let flats owned by Asian investors."
But others, like Yakine Abdullah, 22, a business management student from Iraq who was waiting outside the new embassy, said that the area was not just up and coming, it was alive and flourishing today.
"Four years ago, I lived in Vauxhall, and it was more dodgy," but in three years, there has been a lot of construction, and the area has changed for the better, she claimed. "I now live very close to here, and it's my favorite area to live in," Abdullah said.
The embassy is located in the London borough of Wandsworth, where the council leader disputed Trump's description of the area.
The Dutch embassy is also considering moving to the area.
In addition to the U.S. embassy, the Euro 15 billion Nine Elms development includes the Battersea Power Station, a former coal station that lay empty for decades. The iconic building, with its towering white smoke stacks, famously featured on the cover of Pink Floyd's album "Animals."
Henry Pryor, a London property expert, said that the rumored figures for the sale of the old U.S. embassy - estimates range from Euro 300 million to Euro 500 million - seemed like a "fair deal." "I don't think it was knocked out cheap. It looked exactly like it should've looked," he said.
But while the price tag for the Mayfair building didn't give him pause for concern, he said that the location of the new embassy did.
When he heard that the U.S. embassy was moving to Nine Elms, he said it was like hearing about "prospectors heading West," adding that other than "fantastic views," the area at the time was "desperately unfashionable" with "little to commend about it."
But he added he looked forward to the new U.S. embassy "blazing a trail" in the area.
Peter Mackie, senior partner at Property Vision, said that given the United States wanted more space and security features - new embassies have to have a 100-foot perimeter - Nine Elms was "as good as anywhere."
"Looking forward, how that site will perform, that's anyone's guess," he said, adding that Battersea Power Station is "extraordinarily iconic location," but that the area becomes "more tenuous" as you walk away from the building.
For some Americans in London scrambling to sort out passport or visa issues, the very fact that the new embassy isn't in a highly built-up location was welcome.
"It's beautiful down here, with the wharf, it's easy to get to, a 10-minute walk from the station," said Julian Tejeda, a 22-year-old who lost his passport but was hoping to get a new one pronto to meet up with friends in Germany. He went to the old U.S. embassy on Monday, which he said was "harder to get to" because of all the tiny streets in central London.
Pointing in the direction of the new embassy, which has a small moat, he said: "This location is much more open."
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.