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Tier-2 Cities Propel India’s Growing Home Interiors Market
People in India’s smaller cities are spending more money to improve their homes.
The average Tier-2 household spends about ₹3.9 lakh on interiors.
They are buying more than basic furniture, including modular kitchens, better lighting and storage.
Many people now see home improvement as an investment in comfort and lifestyle.
Deloitte says households spend around 10–15% of their home value on interiors.
Luxury décor purchases increased sharply in 2025 compared with 2024.
Smaller-city households have reached 74% of the interior-spending level of larger-city households.
India’s overall home and household market is expected to grow significantly by 2030.
Average spending on home interiors in Tier-2 cities has reached ₹3.9 lakh.
Tier-2 households have reached 74% of Tier-1 interiors spending, narrowing the consumption gap.
Deloitte estimates consumers allocate 10–15% of their home value to interiors.
Luxury décor shopping rose 300% year-on-year in 2025 compared with 2024.
India’s home and household sector is projected to reach $260 billion by 2030.
- Who
- Indian households, particularly those in Tier-2 cities, and the broader home and household sector.
- What
- Spending on home interiors is rising, with Tier-2 households averaging ₹3.9 lakh and increasingly buying design-focused products and services.
- Where
- India, especially its Tier-2 cities and households.
- When
- The reported comparisons cover 2025 versus 2024, with projections extending to 2030.
- Why
- Homes are increasingly viewed as investments in comfort, aesthetics, functionality and lifestyle, while the consumption gap with Tier-1 cities is narrowing.
Key facts
- Average Tier-2 spending
- ₹3.9 lakh on home interiors
- Tier-2 spending compared with Tier-1
- 74% of Tier-1 interiors spending
- Interior allocation
- Consumers allocate around 10–15% of home value to interiors
- Luxury décor growth
- 300% year-on-year increase in 2025 compared with 2024
- Home and household market
- Projected to reach $260 billion by 2030
- Furniture and furnishings
- Projected to grow from $39 billion in 2025 to $67 billion by 2030
- Interior services
- Projected to grow from $4 billion to $8 billion by 2030
Sources
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