A growing number of Indian expatriates living in the Gulf are moving away from traditional investments in Indian real estate and increasingly allocating their capital to equities, mutual funds, and structured financial planning, according to a recent study by Equirus Wealth.
The report, based on responses from 8,300 non-resident Indians (NRIs) across the Gulf Cooperation Council (GCC) countries, including United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain, highlights a structural shift in how overseas Indians are approaching wealth creation amid geopolitical tensions in West Asia.
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Indian Equities Become the Preferred Asset Class
According to the survey, 73% of GCC-based NRIs have increased their exposure to Indian equities and mutual funds, while 42% indicated they are prepared to deploy additional capital into Indian equities in the future.
Indian equities emerged as the most preferred investment avenue, significantly outperforming all other asset classes.
Preferred Future Investment Options Among Gulf NRIs
- Indian Equities and Mutual Funds – 42%
- Fixed Income and Debt Instruments – 23%
- Wait-and-Watch Strategy – 15%
- International Equities – 11%
- Gold – 4%
- Cash and Liquid Assets – 4%
- Indian Real Estate – 2%
These findings suggest that Indian real estate, once the default investment destination for Gulf-based NRIs, has become a relatively low-priority asset class.
Declining Interest in Indian Real Estate
Historically, NRIs in the Gulf channelled a substantial portion of their remittances into property purchases in India, including apartments, plots, second homes, and commercial assets. However, the latest report indicates that this trend is changing rapidly.
Approximately 40% of respondents reported reducing their exposure to Indian real estate, pointing to a broad-based and potentially long-term reallocation of assets rather than a temporary adjustment.
Net Allocation Trends
- Indian Equities and Mutual Funds: +54%
- Gold: +16%
- Fixed Deposits and Debt Instruments: +15%
- Indian Real Estate: -27%
- International Equities: -4%
- Cash Holdings: -4%
The decline in real estate allocation reflects a growing preference for more liquid, transparent, and professionally managed investment instruments.
Financial Confidence Remains Strong
Despite rising geopolitical uncertainty in the region, investor sentiment among Gulf NRIs remains resilient.
The study found that 86% of respondents said their financial confidence had either remained stable or improved. While 83% acknowledged geopolitical risks, most investors reported adopting disciplined financial behaviour rather than reacting impulsively.
Instead of making abrupt exits, respondents indicated they were focusing on:
- Higher savings rates
- Controlled spending
- Selective portfolio rebalancing
- Diversified investment planning
Implications for the Indian Real Estate Sector
The report underscores a notable change in NRI investment behaviour that could have long-term implications for India’s property market.
For decades, NRI capital, particularly from the Gulf, has been a key source of demand in premium residential and investment-led property segments. As more expatriates move toward financial assets such as equities and mutual funds, developers may need to rethink their engagement strategies and value propositions.
At the same time, the trend reflects the growing sophistication of overseas Indian investors, who are increasingly prioritising liquidity, diversification, and professionally managed wealth creation over traditional real estate ownership.
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A Structural Shift in Wealth Creation
The findings from Equirus Wealth suggest that Gulf-based NRIs are embracing a more strategic and market-driven approach to investing in India. While real estate remains part of the investment landscape, its dominance appears to be waning as equities and mutual funds become the preferred route for long-term wealth accumulation.
As geopolitical uncertainty continues to shape global markets, disciplined investing and portfolio.
