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Tier-2 home-interiors spending reached ₹3.9 lakh per home in 2025
Our read
Tier-2 spending is likely to draw branded interiors providers beyond metros, but customer acquisition and local fulfilment will determine whether expansion produces profitable growth.
For operators
Prioritize Tier-2 expansion with locally priced interiors packages and reliable installation, as spending reached ₹3.9 lakh per home in 2025—nearly 74% of Tier-1 levels.
Watch
Livspace or HomeLane announcements of Tier-2 launches or local partnerships
The report,
Tier-2 households spent an average of ₹3.9 lakh per home on interiors in 2025, nearly 74% of Tier-1 spending, according to Deloitte. India's home and household sector is projected to reach $260 billion by 2030.
- Tier-2 2025 interiors spend per home
- ₹3.9 lakh
- Tier-2 interiors spend versus Tier-1, 2025
- nearly 74%
- Home and household sector by 2030
- $260 billion
Reported figures
From the report. Source details below
| Home value allocated to interiors: | around 10-15% |
|---|---|
| Furniture and furnishings by 2030: | $67 billion |
What to watch next
- IKEA announcements extending delivery coverage beyond major metros
- Provider disclosures of Tier-2 orders, conversion rates and project values
- Interior-provider results showing discounting, installation costs or margin pressure
- Follow-up household surveys showing whether the spending gap with Tier-1 narrows
The counter-case
The case against this reading — not reported by the source.
Higher spending per interiors project does not necessarily translate into broad-based retail growth. The ₹3.9 lakh average could reflect affluent homeowners or larger homes rather than typical Tier-2 purchasing power. Spending may also flow to local contractors and carpenters, leaving organized retailers with limited gains and costly fulfillment.