High-end homes drive growth in interiors, lifestyle products

By: Team India Tracker

Luxury spending is soaring, driven by a rising ultra-wealthy population. With luxury housing growing 21% annually, momentum looks set to continue through the decade.

India’s luxury housing market is not only expanding rapidly but also transforming demand for furniture, interiors, and fittings. As more affluent Indians commit to high-end homes, the growth is spilling over into premium segments across the supply chain—from kitchens and bathrooms to tiles and furniture. 

Worth mentioning here is that the change is reshaping business strategies for global and domestic brands that cater to India’s wealthy, who are now seeking integrated, lifestyle-driven products rather than one-off purchases, according to a report in the Business Standard. 

From real estate to interiors 

Luxury housing has been one of the fastest-growing segments of the real estate market since the pandemic. Sales surged to 117,000 units in 2024, compared with just 22,054 in 2021, according to property consultancy Anarock. The momentum has lifted developers’ earnings but is also fuelling parallel demand for high-end home interiors. 

“Customers investing Rs 3-5 crore in homes want furniture that matches their lifestyle expectations,” Swapneel Nagarkar, business head and executive vice-president at Interio by Godrej, told the financial daily. “Increasingly, we are seeing requests for integrated solutions rather than individual purchases, where everything works together from Day One.” 

He went on to add that the trend has helped Interio maintain 25 per cent annual growth, which the company aims to sustain for the next few years as demand tracks luxury housing expansion. 

A broader consumer shift 

More significantly, the shift is not limited to developers or top-end buyers. It reflects a broader consumer trend: rising disposable incomes, a growing base of high-net-worth individuals, and urbanisation are driving spending on homes that project status and comfort. 

Post-Covid, luxury spending has surged, fuelled by a rapidly expanding ultra-high-net-worth population that’s projected to rise from 13,000 in 2023 to 20,000 by 2030. Luxury housing, already growing at a compound annual rate of 21 per cent, is set to sustain that momentum through the decade. 

Demand is no longer confined to Mumbai or Delhi. Tier-II and Tier-III cities are emerging as new centres of wealth, prompting companies such as Hansgrohe to expand their retail presence and distributor networks. The firm plans to open a flagship experience centre in New Delhi as part of a broader scale-up. 

Market potential and valuations 

The pipeline for luxury housing in India is projected to more than double from $38 billion in 2024 to over $101 billion by 2029, according to industry estimates. That expansion has a knock-on effect for the interiors market, which was valued at $12.33 billion last year and is expected to reach $24.52 billion by 2030, Magicbricks data show. 

The returns can be significant. Well-designed interiors can boost a property’s resale value by up to 70 per cent and help landlords secure rental premiums as high as 45 per cent, according to Magicbricks. That makes interiors less of a discretionary purchase and more of a strategic investment for many homeowners. 

Mid-sized homes dominate demand 

The luxury market in India is not just about palatial mansions. Much of the demand is concentrated in two- and three-bedroom apartments, which account for 95 per cent of sales. Homes ranging from 750 to 2,000 square feet, priced between Rs 2-5 crore, represent nearly half of the market, reflecting a preference for mid-sized but premium spaces. 

This preference explains the rapid growth of modular, integrated interior solutions, as buyers in this bracket want homes that are ready to use and consistent with global lifestyle trends. 

Outlook 

For developers, the luxury segment remains a lucrative pocket of growth. For furniture and fittings companies, it has become one of the most reliable engines of revenue. With disposable incomes climbing and global luxury trends shaping Indian tastes, the next few years could see a stronger convergence between real estate and branded interiors. 

The key question is whether growth remains broad-based or stays concentrated among affluent households. For now, the numbers suggest that India’s wealthier homebuyers are willing to pay for more than just square footage. They are paying for an experience—and brands from furniture to fittings are lining up to deliver it.