Why Gulf NRIs turn to Indian equities as real estate eyes exit

Indian equities are emerging as the primary wealth creation engine for Gulf-based non-resident Indians, with a clear shift towards real estate and financial assets, according to a new report by Equirus Wealth. The report, based on a survey of over 8,300 GCC-based NRI investors in the UAE, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain, shows that 73% of respondents have increased exposure to Indian equities, while 42% are willing to deploy new capital in the market.

This marks a structural change in asset allocation patterns rather than a short-term reaction to global uncertainty, the report said. “What we are seeing is not a short-term reaction to global uncertainty, but a structural evolution in how GCC NRIs approach wealth creation,” said Ankur Punj, MD, Equirus Wealth. “The shift from real estate to financial assets, particularly Indian equities, marks a critical transition.”

Data shows that real estate is witnessing a broad-based exit, with as many as 40% of investors reducing exposure, signaling a long-term reallocation of capital away from physical assets. This shift comes despite heightened geopolitical tensions in the Gulf region.

Despite this, 86% of respondents reported stable or improved financial confidence, reflecting stable income visibility and a more mature investment approach among NRI investors. At the same time, 83% acknowledged geopolitical risks, but said their response was measured, focusing on higher savings and selective portfolio adjustments rather than panic-driven decisions.

The report shows that the move towards equity is not driven by a single trend but is visible across multiple indicators. While 42% of investors are actively looking to deploy new funds, broader portfolio data shows a strong trend, with over 73% increasing exposure to equity and mutual funds. This further strengthens India’s position as a destination of choice for long-term capital deployment.

Traditionally linked to family support, remittances are now increasingly aligned with investment goals. The report shows that 27% of remittances are now directed towards investments and 22% towards retirement planning, accounting for almost half of the total inflows to India.

This suggests deeper financial integration of overseas Indians with India’s capital markets. Investor behavior also shows a mixture of caution and assurance. About 35% of respondents said they are increasing savings, while 26% are reducing discretionary spending, but this has not reduced market share. Instead, 75% of investors invest actively or use capital selectively, indicating a forward-looking approach.

Confidence levels vary across regions. Kuwait showed the highest financial confidence among respondents, followed by the UAE and Qatar, while Saudi Arabia and Oman showed a more cautious attitude. Bahrain recorded the lowest confidence level in the sample.

The report identifies three long-term structural changes that are driving this trend – the shift from physical to financial assets, India’s emergence as a major asset destination and growing financial discipline among investors. Together, these trends suggest that Indian equities are not only benefiting from cyclical inflows, but are increasingly becoming a central pillar of global NRI portfolios.