Millennials Fuel 30% YoY Surge in Interior Spending in Bengaluru, Mumbai, and Pune
Millennials are driving a significant 30% year-over-year increase in interior spending in Bengaluru, Mumbai, and Pune, with a focus on maximizing functionality in smaller spaces. Bengaluru leads in 2BHK and 3BHK upgrades, Pune in 3BHK, and Mumbai in 1BHK.
Interior SpendingMillennialsReal EstateBengaluruMumbaiReal Estate PuneSep 02, 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 period April-June 2025 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 too 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.
“People are spending more on maximizing the utility of smaller spaces rather than on furniture that lasts a lifetime. Social media and e-commerce have also expanded awareness of design choices, while organized players in interiors have made quality services more accessible,” said Amit Agarwal, CEO and co-founder of NoBroker, in an interview with HT.com.
Organized interior players in India include firms like Livspace, HomeLane, Design Café, Pepperfry, and NoBroker Interiors, which offer end-to-end, tech-driven design solutions.
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.
“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. Unlike older generations who prioritized durability and core materials, millennials seek modern finishes, flexible layouts, and stylish yet functional designs,” Agarwal said.
In comparison, millennial families with larger homes and young children often spend higher absolute amounts, but they tend to balance costs by opting for more affordable, practical finishes rather than luxury interiors.
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 in Bengaluru, Mumbai, and Pune?
The increase is driven by rising incomes, women leading design and budget decisions, and furnishing costs that have nearly doubled over the past five years. Additionally, shrinking carpet areas in new launches have made functionality a top priority for homeowners.
Which city recorded the highest jump in 3BHK interior spends?
Pune recorded the highest jump in 3BHK interior spends at 30% YoY.
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.
Why are millennials investing more in home interiors?
Millennials are investing more in home interiors due to higher disposable incomes, financial flexibility, and a desire to create spaces that reflect their personality and lifestyle. They are also motivated by the shift toward nuclear families and the availability of modern, functional designs.
How has the cost of home furnishings changed over the past five years?
The cost of home furnishings has nearly doubled over the past five years. For example, a 1BHK that once cost ₹2–4 lakh to furnish now ranges between ₹3–6 lakh.
Related News Articles
Boosting India's Housing Market: Developers Seek Tax Incentives and Industry Status in Budget 2024
The Indian housing sector is looking forward to the Union Budget 2024, expecting tax reliefs and other sentiment boosters to stimulate growth in the market.
Kalpataru Ltd Set to Enter Nagpur Real Estate Market with Plotted Development Project
Mumbai-based Kalpataru Ltd plans to launch a plotted development project in Nagpur, marking its entry into the city's real estate market. The project will be spread across 37 acres and will have 400 plots of sizes 1,200 to 4,000 sq ft range.
Hong Kong Halts Commercial Land Sales for Seventh Consecutive Quarter
Hong Kong's government has announced that it will not sell any commercial land in the quarter from October to December, citing low demand and high office vacancy rates.
Homebuyers Forum Claims RERA Act Falls Short of Objectives, Urges Consumer Affairs Ministry for Action
A forum representing homebuyers in Maharashtra claims that the Real Estate (Regulation and Development) Act, 2016, has failed to meet its objectives. The forum is now urging the Union Consumer Affairs Ministry to issue specific guidelines to protect consu
Ahmedabad Shines with Top Rental Yields in India
Ahmedabad leads the pack with the highest rental yields in India, clocking in at 3.9%, according to a recent report by Magicbricks. Other cities like Hyderabad, Kolkata, and Pune are also seeing significant increases in rental returns.
Incuspaze Expands with Major Leasing Deal in Gurugram's Thriving Real Estate Market
Incuspaze, a prominent player in the commercial real estate sector, has announced a significant leasing deal in Gurugram, marking a major expansion in one of India’s most booming real estate markets. This move underscores the growing demand for quality of