Tier-2 Cities to Power India’s Home Interiors Market Growth
Real Estate

Tier-2 Cities to Power India’s Home Interiors Market Growth

India’s home interiors market is poised for strong expansion, growing from Rs 1.27 trillion in 2024 to Rs 2.75 trillion by 2030, driven largely by rising demand from Tier-2 cities, according to a new research report by Magicbricks. The study estimates that Tier-2 markets will grow at a compound annual growth rate (CAGR) of 19 per cent, significantly outpacing Tier-1 cities, which are projected to grow at 12 per cent over the same period.

Tier-2 cities alone are expected to expand from Rs 255.36 billion in 2024 to nearly Rs 725 billion by 2030, reflecting a rapid shift in consumer preferences and rising aspirations beyond India’s metropolitan centres. The research highlights that 82 per cent of interior demand in Tier-2 cities comes from resale homes, pointing to a strong renovation-led trend as homeowners increasingly invest in modular furniture, smart storage solutions and aesthetic upgrades.

Average spending on home interiors in Tier-2 cities stands at Rs 3.9 lakh per home—around 74 per cent of average spending in Tier-1 markets—underscoring growing design awareness and willingness to invest among middle-income households. Bedrooms and living rooms continue to account for the bulk of expenditure, as families prioritise high-usage spaces and value-driven, modular solutions.

Commenting on the findings, Prasun Kumar, Chief Marketing Officer, 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, reflecting the rise of an aspirational India.”

The report attributes market growth to factors such as rapid urbanisation, rising disposable incomes, evolving lifestyle needs and the growing influence of digital platforms like Instagram and YouTube on design choices. Cities including Lucknow, Jaipur, Goa and Kochi are emerging as key demand centres, supported by strong real estate activity and increasing adoption of turnkey interior solutions.

At a national level, furniture and modular components account for 45 per cent of interior spending, with a steady transition from carpenter-made solutions to factory-finished, modular formats. The study also notes a surge in online furniture purchases in Tier-2 cities, driven by limited offline retail options and rising digital confidence.

The research further positions India as an emerging global player in furniture exports, highlighting opportunities to scale through modular design, craftsmanship and value-added 

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

India’s home interiors market is poised for strong expansion, growing from Rs 1.27 trillion in 2024 to Rs 2.75 trillion by 2030, driven largely by rising demand from Tier-2 cities, according to a new research report by Magicbricks. The study estimates that Tier-2 markets will grow at a compound annual growth rate (CAGR) of 19 per cent, significantly outpacing Tier-1 cities, which are projected to grow at 12 per cent over the same period.Tier-2 cities alone are expected to expand from Rs 255.36 billion in 2024 to nearly Rs 725 billion by 2030, reflecting a rapid shift in consumer preferences and rising aspirations beyond India’s metropolitan centres. The research highlights that 82 per cent of interior demand in Tier-2 cities comes from resale homes, pointing to a strong renovation-led trend as homeowners increasingly invest in modular furniture, smart storage solutions and aesthetic upgrades.Average spending on home interiors in Tier-2 cities stands at Rs 3.9 lakh per home—around 74 per cent of average spending in Tier-1 markets—underscoring growing design awareness and willingness to invest among middle-income households. Bedrooms and living rooms continue to account for the bulk of expenditure, as families prioritise high-usage spaces and value-driven, modular solutions.Commenting on the findings, Prasun Kumar, Chief Marketing Officer, 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, reflecting the rise of an aspirational India.”The report attributes market growth to factors such as rapid urbanisation, rising disposable incomes, evolving lifestyle needs and the growing influence of digital platforms like Instagram and YouTube on design choices. Cities including Lucknow, Jaipur, Goa and Kochi are emerging as key demand centres, supported by strong real estate activity and increasing adoption of turnkey interior solutions.At a national level, furniture and modular components account for 45 per cent of interior spending, with a steady transition from carpenter-made solutions to factory-finished, modular formats. The study also notes a surge in online furniture purchases in Tier-2 cities, driven by limited offline retail options and rising digital confidence.The research further positions India as an emerging global player in furniture exports, highlighting opportunities to scale through modular design, craftsmanship and value-added 

Next Story
Infrastructure Urban

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Next Story
Infrastructure Transport

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Next Story
Infrastructure Transport

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement