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THEBUSINESSBYTES BUREAU
NEW DELHI, DECEMBER 8, 2025
India’s home interiors industry is on the cusp of an unprecedented expansion, with its market value projected to more than double from ₹1.27 lakh crore in 2024 to ₹2.75 lakh crore by 2030. New research released by Magicbricks paints a dynamic picture of the sector’s transformation and identifies Tier-2 cities as the primary engines of growth over the next five years.
According to the report, interior demand in Tier-2 cities is accelerating at a remarkable CAGR of 19%, nearly twice the pace of their Tier-1 counterparts, which are expected to grow at 12 per cent. This surge will propel Tier-2 markets from their current valuation of ₹25,536 crore to nearly ₹72,500 crore by the end of the decade. The findings underscore the growing economic weight and evolving design sensibilities of India’s emerging urban clusters.
One of the most striking insights from the research is that 82 per cent of interior demand in Tier-2 cities stems from resale homes. This signals a powerful renovation wave sweeping across middle-income households, where homeowners are prioritizing upgrades to existing spaces. From modular kitchens and smart storage systems to contemporary furniture and aesthetic enhancements, the shift is characterised by a strong desire to modernize homes with functional, value-driven solutions. Average interior spending in these cities now stands at ₹3.9 lakh per home — 74 per cent of the typical expenditure in Tier-1 cities — reflecting a growing appetite for quality design.
Commenting on the findings, Prasun Kumar, CMO, Magicbricks, said, “The rapid expansion of the home interiors market, especially across India’s Tier-2 cities, signals a deep shift in consumer behaviour. Homes are becoming more personalised, more functional, and more design-led. What we are witnessing is the rise of a confident, aspirational India — one that increasingly seeks modular, contemporary interiors that elevate daily living. These markets are becoming powerful demand centres for the next phase of growth in India’s home interiors ecosystem.”
The market’s momentum is being shaped by a confluence of strong growth drivers. Rapid urbanization, rising disposable incomes, and evolving lifestyle aspirations have pushed families to redesign high-usage spaces such as bedrooms and living rooms. Digital platforms like Instagram, Pinterest, and YouTube are playing a major role in influencing design choices, exposing consumers to global trends and easing the adoption of turnkey interior solutions.
Cities such as Lucknow, Jaipur, Goa, and Kochi are emerging as high-performance markets, buoyed by robust real estate development and increased demand for modern, modular interiors. The study highlights that the preference is quickly shifting from traditional carpenter-made furniture to factory-finished modular components, which currently account for 45% of total interior spending nationwide.
The rise of online furniture consumption is another pivotal trend, especially in Tier-2 markets. Limited offline retail options, coupled with growing digital confidence, have pushed consumers toward e-commerce platforms for both furniture and décor purchases. This shift is democratizing access to quality interior solutions and further accelerating market penetration.
Beyond domestic consumption, the report positions India as a potential global force in the furniture and interiors value chain. Currently ranked 19th in global furniture exports, the country is well-placed to scale up, driven by its growing modular manufacturing capabilities, design innovation, and reputation for craftsmanship. While China continues to dominate global exports, India’s blend of customization, competitive pricing, and expanding local demand is carving out a promising pathway for growth.
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