Gulf turmoil sends NRI homebuyers back to India amid luxury housing demand | Industry News

“We are seeing a clear rise in NRI interest. At Puravankara, NRIs accounted for 9 per cent of our pre-sales in Q1 FY26; this increased to 13 per cent in Q4 FY26 and further to 15 per cent in Q1FY27. Significantly, close to 87 per cent of our NRI demand today comes from West Asia,” said Mallanna Sasalu, chief executive officer (CEO)-South, Puravankara. 

NRIs based in the six Gulf Cooperation Council (GCC) countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates — “today view India as a stable, long-term investment destination”, he said. US bases in GCC countries have come under sporadic Iranian attack since the outbreak of war on February 28. 

NRI buyers have been booking apartments in Mumbai, Bengaluru and the National Capital Region in the price range of ₹1-5 crore, according to developers and executives. 

The trend could mark a departure from last year, Abhishek Lodha, managing director (MD), Lodha Developers, predicted during the firm’s earnings call for the first quarter of FY27. “Uncertainty abroad is and will cause NRIs to want to secure a home base in India. We also expect to see the same pattern from US-based buyers for immigration-related reasons. Last year, about ₹35,000 crore flowed from India into Dubai’s real estate. A material part of that will now stay in India,” he said.

 however, added that the impact of war on demand is moderate. NRI buyers from West Asia represented about 4-5 per cent of the company’s sales, roughly a third of its total NRI business, and sentiment there remains subdued. “There is an offsetting dynamic we think that is not yet fully played out.” 

Sharad Mittal, founder and CEO, Arnya RealEstates Fund Advisors, said NRI capital moving towards India was concentrated in premium and branded housing, while the mid-market NRI buyer was pulling back. Citing a recent Equirus Wealth survey, he said 40-45 per cent of NRIs were actively reducing real estate allocations and redirecting money towards equities and mutual funds. 

Nisus Finance chairman and MD Amit Goenka said there was emerging evidence that Gulf-based NRIs were reassessing where to deploy residential capital, with India benefiting from the reassessment. 

Industry experts suggest that NRI demand could become an important incremental tailwind for premium and luxury housing sales, but would not fundamentally alter the direction of India’s housing market. Domestic high-net-worth individuals, rising incomes and infrastructure-led end-user demand remain the main supports for India’s luxury housing market. 

Godrej Properties’ MD and CEO Gaurav Pandey, during the company’s Q1 FY27 earnings call, said, “The quality of conversations has really shifted from the West Asia market. Barring the West Asia market, I think it’s pretty much business as usual. A lot of people are looking at India as a good place to invest purely from a long-term currency hedge, and people want to buy properties for their parents or come back here for retirement.” 

Signature Global (India)’s founder and chairman Pradeep Aggarwal also reported early signs of NRI interest tilting towards India, particularly from the Gulf. He said enquiries and site visits from NRI buyers across the company’s Gurugram portfolio had picked up meaningfully over the past two quarters, particularly for premium and luxury projects. 

However, market participants differ on whether the trend represents a temporary shift or the beginning of a structural redirection of NRI capital. 

Aayush Puri, CEO, Residential, Middle East and CEO, Anarock Channel Partners, cautioned against interpreting the developments as a broad-based shift. He said there was some evidence of more cautious GCC-based NRIs reducing their exposure to West Asian real estate and increasing investments in Indian equities and mutual funds, alongside higher interest in Indian luxury properties. Equally, some investors were also value-picking West Asian properties, expecting the current upheaval to be temporary. 

Mukesh Singh, chief of sales, Rustomjee Group, said any uncertainty globally is more likely to accelerate an existing preference than create a new one. “We are seeing NRI buyers take a far more long-term view. The conversation today is not just about investing in a home – it is about securing a well-located, high-quality asset that offers both lifestyle value and long-term appreciation. Many are planning for their families, future relocation or creating a base in India over the next decade.” 

According to real estate consultancy Knight Frank India, residential sales across the top eight major Indian cities stood at 171,471 units in H1CY26, a marginal 1 per cent increase year-on year. 

Homes priced above ₹1 crore accounted for 54 per cent of total sales, up from 49 per cent in H1CY25, continuing a shift in demand that has accelerated since 2021.