Millennials Drive 30% Year-on-Year Increase in Home Interior Spending in Bengaluru, Mumbai, and Pune
Millennials in Bengaluru, Mumbai, and Pune are leading a 30% YoY surge in interior spending, with a focus on maximizing functionality in smaller homes. Bengaluru sees the sharpest increase in 2BHK and 3BHK spends, while Pune records the highest jump in 3BHK spends and Mumbai in 1BHKs.
MillennialsInterior SpendingBengaluruMumbaiPuneReal Estate MumbaiSep 03, 2025
Experts attribute the trend to shrinking carpet areas in new launches, making functionality a top priority for homeowners. “People are spending more on maximizing the utility of smaller spaces rather than on furniture meant to last a lifetime,” they note.
In Mumbai, costs for doing up a 1BHK in the April-June 2025 period are up by 15% YoY, while 2BHK and 3BHK spends rose by 10% and 9% YoY, respectively. Bengaluru recorded the steepest jump for larger homes, with spending on both 2BHK and 3BHK interiors rising by 25% in the same period, while 1BHK interiors went up by 12%. Pune also saw a strong rise, with 1BHK spending increasing by 6%, 2BHK by 15%, and 3BHK by as much as 30% year-on-year.
The current average spend on interiors for a 1BHK in Mumbai between April-June 2025 stands at ₹6.3 lakh, compared to ₹8.9 lakh for a 2BHK and ₹13.4 lakh for a 3BHK a year ago. In Bengaluru, spending is slightly lower, with ₹4.2 lakh for a 1BHK, ₹7.6 lakh for a 2BHK, and ₹10.5 lakh for a 3BHK. Pune falls in between, with 1BHK spending averaging ₹4.8 lakh, 2BHK at ₹7.2 lakh, and 3BHK at ₹11 lakh, the data showed.
The sharpest annual increase was seen in Bengaluru, where spending on 2BHK and 3BHK interiors rose by 25% YoY each in June 2025. Pune recorded the highest jump in 3BHK spends at 30%, while Mumbai saw a 15% rise in 1BHK interiors compared to last year. Experts say this surge is being driven by shrinking carpet areas in new launches, which has made functionality a priority for homeowners.
NoBroker said that as carpet areas in new housing projects shrink, homeowners are choosing to spend more on interiors that maximize functionality and efficiency. Instead of investing in heavy furniture that lasts a lifetime, buyers are prioritizing modular, flexible designs where one room can serve multiple purposes, almost like a “flexi home.”
Agarwal said that shift is also being driven by rising awareness through e-commerce and social media, which showcase premium finishes and smart design solutions. “The growth of organized interior players has further simplified access to quality services, reducing the hassles of dealing with multiple vendors. With home prices soaring while interior costs remain relatively steady, many see interiors as a smaller yet impactful investment to upgrade their lifestyle, even if it means saving less and spending more today.”
More than half of the heavy spenders on interiors today fall into the Millennial age group of 30–40, and the reasons are both financial and lifestyle-driven. This demographic enjoys higher disposable incomes, with rising salaries, while many still have relatively low family expenses, with no children or only 1-2 young children. That financial flexibility allows them to invest more in comfort, functionality, and aesthetics for their homes. The shift toward nuclear families has also played a role, leaving more room in household budgets for interiors. Beyond practicality, millennials are motivated by the desire to make their homes stand out—spaces that reflect their personality and lifestyle rather than simply serve as living quarters.
For a typical middle-class homebuyer, the cost of doing interiors has nearly doubled in the last five years. According to NoBroker data, earlier, a 1BHK could be furnished for ₹2–4 lakh, but today the spend ranges between ₹3–6 lakh. Similarly, interiors for a 2BHK that once cost ₹3–8 lakh now fall in the ₹5–12 lakh range. For larger homes, a 3BHK that used to require ₹4–10 lakh now typically costs anywhere between ₹6–15 lakh, according to NoBroker data.
Frequently Asked Questions
What is driving the 30% YoY increase in interior spending?
The increase is driven by millennial homebuyers with higher disposable incomes, women leading design and budget decisions, and the need to maximize functionality in smaller homes due to shrinking carpet areas in new launches.
Which city saw the highest increase in 3BHK interior spends?
Pune recorded the highest jump in 3BHK spends at 30% year-on-year.
Why are homeowners spending more on maximizing the utility of smaller spaces?
Shrinking carpet areas in new launches have made functionality a top priority for homeowners, leading them to invest more in modular and flexible designs.
How have e-commerce and social media influenced interior design trends?
E-commerce and social media have expanded awareness of design choices and premium finishes, while organized interior players have made quality services more accessible.
What is the current average spend on interiors for a 1BHK in Mumbai?
The current average spend on interiors for a 1BHK in Mumbai between April-June 2025 stands at ₹6.3 lakh.
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