Gulf NRIs dump real estate, turn to Indian Equities amid West Asia crisis

73% GCC NRIs Increase Exposure to Indian Equities as Real Estate Sees Structural Exit

For decades, Gulf-based Indians largely sent money home for family support, savings and property purchases. But amid rising geopolitical uncertainty in West Asia, a major shift is now underway.GCC-based NRIs are increasingly moving away from Indian real estate and putting their money into Indian equities, mutual funds and long-term financial planning instead.

 

A new report by Equirus Wealth, based on responses from 8,300 NRIs across the UAE, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain, reveals a structural transformation in how expatriate Indians approach wealth creation and remittances.

 

Indian equities become the top wealth engine for NRIs

 

Key findings:

 

• 73% of GCC NRIs increased exposure to Indian equities and mutual funds
• 42% are willing to deploy fresh capital into Indian equities
• Indian equities emerged as the single biggest preferred asset class for future investments.

 

Fresh capital deployment preferences:

 

• Indian equities: 42%
• Fixed income/debt: 23%
• Wait-and-watch: 15%
• International equities: 11%
• Gold: 4%
• Cash/liquid assets: 4%
• Real estate in India: 2%

 

The data signals a dramatic shift:  Indian markets are now viewed as a stronger long-term wealth engine than physical assets like property.

 

Real estate sees structural exit

 

Historically, Gulf NRIs were among the biggest investors in:

 

• Indian property,
• second homes,
• land,
• and real estate-linked assets.

 

That trend is now reversing sharply.

 

The report found:

Up to 40% of respondents are reducing exposure to Indian real estate

 

"What we are witnessing is not a short-term reaction to global uncertainty, but a structural evolution in how GCC NRIs approach wealth creation. Investors are becoming more disciplined in behaviour, yet more decisive in allocation — with India firmly at the centre of that strategy. The shift away from real estate towards financial assets, particularly Indian equities, marks a defining transition. At the same time, remittances are no longer driven by obligation — they are increasingly being deployed with clear investment intent and long-term planning," said Ankur Punj, Managing Director & Business Head – Equirus Wealth.

 

In contrast, real estate is witnessing a broad-based exit, with up to 40% of investors reducing exposure, underscoring a long-term reallocation rather than cyclical rebalancing.

 

Meanwhile:

 

Net portfolio direction by asset class:

• Indian equities/mutual funds: +54%
• Fixed deposits/debt: +15%
• Gold: +16%
• International equities: -4%
• Cash/liquid assets: -4%
• Real estate: -27%

 

 Nearly 86% of respondents reported stable or improved financial confidence, reflecting long-term income visibility and a maturing investment approach. While 83% of investors acknowledge geopolitical risks, their response has been measured and disciplined—characterised by increased savings, controlled spending, and selective portfolio adjustments rather than panic-driven decisions.

 

Fresh capital deployment among GCC NRIs shows a strong and consistent tilt towards Indian equities, as reflected across multiple indicators rather than a single headline number. While 42% of respondents indicate willingness to deploy fresh capital into Indian equities, broader portfolio data shows an even stronger trend, with over 73% increasing exposure to equities and mutual funds.

 

Remittances are becoming investment-driven

 

Another major shift:

 Remittances are no longer being driven mainly by emotional or family obligations.

• Primary purpose of remittances to India:
• Investment in India: 27%
• Family support: 26%
• Retirement planning: 22%
• Savings/reserves: 18%
• Property payments: 3%
• Loan repayments: 3%

 

Combined:

 

Investment + retirement-linked remittances now account for:

49% of remittance intent

 

This marks a significant behavioural evolution: NRIs are increasingly sending money to India with clear wealth-building.  

GCC NRIs remain confident despite Gulf conflict concerns

 

The survey comes at a time of heightened uncertainty in West Asia amid ongoing geopolitical tensions.

 

Yet investor confidence remains surprisingly resilient.

 

Confidence levels:

53% said confidence remained stable

33% said confidence improved

Only 14% said confidence declined

 

Overall:

 

86% of respondents described themselves as financially confident

 

Average confidence score:

 

3.5 out of 5

 

Country-wise confidence:

 

Kuwait: 3.93

UAE: 3.53

Qatar: 3.52

Oman: 3.33

Saudi Arabia: 3.25

Bahrain: 2.75

 

The data suggests that despite geopolitical tensions, many GCC-based Indian professionals still feel financially stable and secure.

 

Geopolitical risks remain the biggest concern

 

While confidence remains stable, concerns around regional instability remain elevated.

 

Key concerns:

83% acknowledged geopolitical risks impact financial decisions

Regional geopolitical instability:

biggest concern for 41%

Inflation:

23%

Global market volatility:

13%

 

However, the report notes that investor behaviour remains measured rather than panic-driven.

 

Instead of:

 

withdrawing capital aggressively,

exiting markets,

or hoarding cash,

 

many investors are:

 

increasing savings,

spending more cautiously,

and reallocating portfolios strategically.

A more disciplined NRI investor is emerging

 

One of the biggest insights from the report is the evolution of the Gulf NRI investor mindset.

 

Behavioural trends:

35% are increasing savings

26% are cutting discretionary spending

Yet:

75% remain actively invested or selectively deploying capital

 

investor base.

Structural Shifts Defining GCC NRI Investors

The report identifies three clear long-term trends shaping NRI investment behaviour:

• Migration from physical to financial assets, led by strong equity inflows and real estate exits

• India’s emergence as the primary wealth engine, across fresh investments and remittance

flows

• Rising financial discipline, with investors becoming more structured, selective, and goal-

oriented