Are Indian equities replacing real estate as the top wealth choice for Gulf NRIs now?

Indian expatriates across the Gulf are increasingly moving away from traditional real estate investments and turning towards Indian equities and mutual funds as their preferred long-term wealth creation strategy. Amid rising geopolitical tensions across West Asia, GCC-based NRIs are showing stronger confidence in India’s financial markets than in physical assets such as property.

A new Equirus Wealth report suggests this shift is no longer cyclical but structural, with Indian equities emerging as the dominant destination for fresh capital allocation among Gulf-based investors.

According to the report, Indian Equity at the Core, Eyes Everywhere: The New Investment Behaviour of GCC NRIs, nearly 73% of surveyed NRIs are increasing exposure to Indian equities and mutual funds, while about 40%-45% are reducing investments in Indian real estate.

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The survey covered more than 8,300 NRIs across the UAE, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain. The findings indicate that long-standing investment preferences among expatriate Indians are changing rapidly as investors seek more liquidity, flexibility, and long-term growth opportunities.

Why the transition

The transition is happening against the backdrop of continued geopolitical uncertainty in West Asia. Regional tensions, inflation concerns, and global market volatility remain major worries for Gulf-based investors. Yet, instead of retreating from markets, many NRIs are recalibrating portfolios and becoming more selective in deployment.

The report showed that geopolitical instability is currently the single biggest concern for GCC NRIs, cited by 41% of respondents. Inflation and rising living costs followed at 23%, while global market volatility accounted for 13%.

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Risks and confidence

Despite these risks, confidence levels among NRIs remain surprisingly resilient. Around 86% of respondents said their financial confidence was either stable or had improved over the past year. Average confidence stood at 3.5 out of 5, reflecting cautious optimism rooted in long-term earning visibility and confidence in India’s growth prospects.

The report noted that GCC NRIs are responding to uncertainty in a disciplined rather than emotional manner. Around 35% of respondents said they had increased savings, while 26% reported reducing discretionary spending. Another 26% shifted toward safer assets such as debt and liquid funds. Importantly, 22% said they had increased allocation to India despite ongoing global uncertainty.

Long-term allocation

Long-tenure NRIs appear to be leading this investment transition. More than 84% of surveyed respondents have lived in the GCC for over 10 years, while 38% have spent more than two decades there. According to Equirus Wealth, this reflects a mature and financially established investor base making deliberate long-term allocation decisions rather than reacting to short-term market movements.

The report also highlighted changing remittance patterns among Gulf-based Indians. Investment in India now accounts for 27% of remittance intent, while retirement planning contributes another 22%. Together, they exceed traditional family-support remittances, indicating that India is increasingly viewed as the primary wealth creation geography for NRIs.

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Higher-income NRIs are gradually diversifying into global equities and international assets, but India remains central to portfolio strategy across all income groups. SIP-based investing, retirement planning, and structured financial portfolios are increasingly replacing property-led wealth accumulation models.

Equirus Wealth said the findings reflect a broader evolution in NRI investment behaviour — one that favours financial assets, disciplined investing, and long-term participation in India’s growth story over legacy real estate holdings.

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