GCC NRIs Shift from Real Estate to Indian Equities Amidst West Asia Crisis

For decades, Gulf-based Indians primarily sent money home to support their families, save, and purchase property. However, amid growing geopolitical uncertainty in West Asia, a significant transformation is underway. GCC-based NRIs are now increasingly moving away from Indian real estate and channeling their funds into Indian equities, mutual funds, and long-term financial planning.

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.

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 compared to 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. This trend is now reversing sharply. The report found that up to 40% of respondents are reducing their 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,” said Ankur Punj, Managing Director & Business Head – Equirus Wealth. “Investors are becoming more disciplined in their behavior, yet more decisive in allocation—with India firmly at the center 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.”

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—characterized by increased savings, controlled spending, and selective portfolio adjustments rather than panic-driven decisions.

Remittances are Becoming Investment-Driven

Another significant shift is that remittances are no longer being driven mainly by emotional or family obligations. The primary purpose of remittances to India is now: - Investment in India: 27% - Family support: 26% - Retirement planning: 22% - Savings/reserves: 18% - Property payments: 3% - Loan repayments: 3%

Combined, investment and retirement-linked remittances now account for 49% of remittance intent, marking a significant behavioral evolution. NRIs are increasingly sending money to India with clear wealth-building goals.

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 are as follows: - 53% said confidence remained stable - 33% said confidence improved - Only 14% said confidence declined

Overall, 86% of respondents described themselves as financially confident, with an average confidence score of 3.5 out of 5. Country-wise confidence scores are: - 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 include: - 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 behavior 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. Behavioral trends include: - 35% are increasing savings - 26% are cutting discretionary spending - Yet, 75% remain actively invested or selectively deploying capital

Structural Shifts Defining GCC NRI Investors

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