Gulf NRIs shift from Indian real estate to equities amid West Asia uncertainty: Report

Amid the ongoing Iran War, the Indian expatriates in the Gulf region are rapidly shifting their investment preferences away from traditional real estate purchases in India and towards equities, mutual funds and structured financial planning, according to a new report by Equirus Wealth.

The study, based on responses from 8,300 non-resident Indians (NRIs) across the Gulf Cooperation Council (GCC) region, including the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain, points to a structural transformation in how overseas Indians are approaching wealth creation amid rising geopolitical uncertainty in West Asia.

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According to the report, 73% of GCC-based NRIs have increased their exposure to Indian equities and mutual funds, while 42% said they are willing to deploy fresh capital into Indian equities going forward. Indian equities emerged as the single most preferred asset class for future investments, significantly ahead of fixed income and global markets.

The survey showed that 42% of respondents preferred Indian equities as their primary future investment avenue, followed by fixed income and debt instruments at 23%. Around 15% of investors preferred to remain in a “wait-and-watch” mode, while 11% favoured international equities. Gold and cash/liquid assets each attracted 4% preference, while Indian real estate accounted for just 2%.

The findings mark a sharp departure from historical investment patterns among Gulf NRIs, who traditionally channelled remittances into property purchases, second homes, land and other real estate-linked assets in India.

The report noted that Indian real estate is now witnessing broad-based selling, with as many as 40% of investors reducing exposure. This indicates a long-term portfolio reallocation rather than a temporary cyclical shift.

Net portfolio allocation trends further highlighted the transition. Indian equities and mutual funds recorded a net positive allocation shift of 54%, while gold and fixed deposits/debt instruments saw net increases of 16% and 15%, respectively. In contrast, real estate registered a net decline of 27%, while international equities and cash holdings both slipped by 4%.

The report also highlighted improving investor confidence among overseas Indians despite ongoing geopolitical tensions in the region. Nearly 86% of respondents said their financial confidence remained stable or had improved.

While 83% of investors acknowledged geopolitical risks in West Asia, most respondents indicated they were responding with disciplined financial behaviour rather than panic. The report said investors were increasingly prioritising higher savings, controlled spending and selective portfolio adjustments instead of making abrupt investment exits.