GCC-based diaspora Indians rebalances portfolios toward equities

GCC-based Indians are moving away from traditional real estate investments towards financial assets, particularly Indian equities, Business Standard reports picking up data from an Equirus Wealth survey of 8.3k. respondents. The shift comes on the heels of changing risk perceptions and a more disciplined approach to wealth creation amid geopolitical uncertainty in the region.

Indian equities and mutual funds have become the preferred asset class, with 73% of respondents increasing exposure and 42% willing to deploy fresh capital. Equities now account for 42% of future allocation, followed by fixed income at 23%, while real estate has dropped sharply to just 2%, in a clear repricing of long-term return expectations. Net portfolio flows show equities and funds gaining 54% while real estate saw a contraction of 27%.

Why it matters: Up to 40% of respondents are actively reducing exposure to Indian property, marking a sustained exit from what was once a dominant investment avenue. Historically, Indian diaspora based in the GCC were the bedrock of the Indian luxury and secondary residential markets. That capital is now being redirected into financial assets that offer easier exits and higher transparency.

Remittances turn investment-driven: Remittance behaviour is also evolving, with investment and retirement planning now accounting for 49% of flows, overtaking traditional family support. Despite geopolitical concerns, 86% of the diaspora remain financially confident, opting for measured, long-term portfolios rather than reactive decisions.

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