₹3.9 lakh/home: Tier-2 spend hits 74% of metro levels in home interiors mkt

Furniture, modular formats take 45% share of India's ₹2.75-lakh-cr market

Tier-2 India is rapidly closing the gap with big metros in the home interiors market, with households now spending an average of ₹3.9 lakh per home—nearly 74% of Tier-1 levels, according to new Magicbricks research. The study shows that rising aspirations, strong real estate activity, and a shift toward modular, design-led living are powering an interiors boom in smaller cities, which are growing almost twice as fast as Tier-1 markets. 

India’s home interiors market is set for massive expansion, rising from ₹1.27 lakh crore in 2024 to ₹2.75 lakh crore by 2030,noted the report. 

 

The study highlighted that Tier-2 cities will outpace Tier-1 markets, growing at a CAGR of 19%, almost double that of Tier-1 cities (12%). Tier-2 markets alone will expand from ₹25,536 crore in 2024 to nearly ₹72,500 crore by 2030.

 

The report also reveals that 82% of interior demand in Tier-2 cities is driven by resale homes, signalling a strong renovation-led trend as homeowners increasingly upgrade existing spaces with modular furniture, smart storage, and aesthetic improvements. 

 

Spending in Tier-2 markets averages ₹3.9 lakh per home—nearly 74% of Tier-1 spends—indicating rising aspiration and design maturity among emerging middle-income households.

 

“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," said Prasun Kumar, CMO, Magicbricks.

 

Key growth drivers include rapid urbanization, rising disposable incomes, evolving lifestyle needs, and digital influence on design choices through platforms like Instagram and YouTube. 

 

Bedrooms and living rooms account for the bulk of spending, with families prioritizing high-usage spaces and value-driven modular solutions. 

 

The report also notes that Tier-2 cities such as Lucknow, Jaipur, Goa, and Kochi are leading interior demand, powered by strong real estate activity and increasing adoption of modern, turnkey interior designs.

 

On a national scale, furniture and modular components dominate 45% of total interior spending, with the market steadily shifting from carpenter-made solutions to factory-finished, modular formats. 

 

Online furniture consumption is booming, particularly in Tier-2 cities, where limited offline retail availability and rising digital

confidence have accelerated e-commerce adoption. 

Key points:

India’s home interiors market is set to jump from ₹1.27 lakh crore (2024) to ₹2.75 lakh crore by 2030.

 

Tier-2 cities will lead growth at 19% CAGR, nearly double Tier-1 cities (12%).

 

Tier-2 interiors spending will rise 3x to ₹72,500 crore by 2030.

 

Average Tier-2 spend is ₹3.9 lakh per home, now 74% of metro levels.

 

82% of Tier-2 demand comes from resale homes, driven by renovation upgrades.

 

Furniture and modular solutions form 45% of total interiors spending.

 

Online furniture buying is surging in Tier-2 cities due to digital confidence.

 

Lucknow, Jaipur, Goa and Kochi are emerging as key demand hubs.