Aimed at providing end-to-end solutions to homebuyers, some real estate developers are warming up to the need for a dedicated interior design unit

With the luxury real estate market thriving, developers are venturing into interior design to enhance the appeal and value of apartments and villas for discerning homebuyers. While many have partnered with experts in the field, some have established dedicated in-house subsidiaries to address the evolving needs of their clientele.

Currently, India’s home decor market is estimated to be worth over $32 billion. However, most of this space remains largely unorganized, with less than 10% of the overall market controlled by organized players. At the same time, the sector has witnessed the rise of new entrants over the past few years, including Livspace, HomeLane, Infurnia, and Spacejoy.

According to a Bangalore-based real estate developer “When you compare projects to projects, we have an edge over other developers because we’re able to provide more facilities .This helps us in converting more clients for flats as well, along with interior,”. To manage the day-to-day expenses, the developers target a 10% margin in this segment.

Among numerous names across India that have ventured into this ancillary industry is Bengaluru-based Gopalan Enterprises. Earlier this year, the company launched an in-house interior design department named ‘Grham.’

As per C Pramod, Director, of Gopalan Enterprises “Nowadays, people do not have enough time to look after interiors. So they want a ready-made set-up with the entire furniture and fittings. This is what the customers are seeking, where a flat is handed over with full-fledge interior work, like in established markets such as Dubai and Singapore” 

The idea of interior design has emerged from the times when the priority was to buy a home and interiors were given a second preference with durability as focus, said sectoral experts.

Customers today want to enter their dream homes with certain luxuries in place, alongside tasteful and trendy interiors with greater customization, that reflect their personalities, they said.

Currently, around 70 to 80% of Gopalan Enterprises’ customers enquire about interior design work while purchasing an apartment. The company now takes up 30 to 40 projects per month within a budget of ₹5 to ₹10 lakh for its 2BHK flats with full interior work. Subsequently, there is a rise of ₹2 lakh in each category for 3BHK flats.

With a 45-day completion target, Gopalan Enterprises’ packages charge a 30% premium over local contractors' charges due to its high-end quality work, the top company executive said.

The upcoming residential projects will offer basic interiors. “The advantage with the builder providing services is, if there is some customization to be done, like a puja room to be accommodated, changes per vastu or the cooking range to be shifted to one corner, these changes can be done along with the civil work during the construction itself,” C Pramod explained.

More Than One Rationale

The interior design market has also gained attention from the commercial real estate segment due to the new trend in the rise of the flexible workspace and co-living system in the country.

“It all comes down to the overall experience that an occupier provides to their staff, and design is a crucial component of that. It has evolved a lot. Previously, there was a very standard model for how an office should look and operate, but this industry has raised the bar.” a top executive of a Bengaluru-based managed office solutions provider said, emphasizing that it adds value to the business.

“Additionally, what has happened is the amenities and facilities aspect has been added in, which usually was not there earlier. So that is being integrated into the base build itself. Therefore, to create the whole experience, the builder is gathering a lot of feedback from us on how the base asset itself can be integrated on day one.,” the individual added.

Another player within the category, IndiQube, on September 17 launched a first-of-its-kind experience center for office interiors in the IT capital. From a range of furniture styles, partitions, ceilings, and flooring options to design elements like moss walls, customizable lighting, varied AC ducts, and wall claddings, the 25,000-square feet center allows businesses to explore possibilities for crafting their ideal workspace.

Meanwhile, the new co-living system has also made a significant contribution, experts highlighted.

“The rise of co-living in India has significantly increased the market for interior design. Developers are consistently focusing on modern, functional, and community-driven designs to cater to millennials and Gen Z,” said Kahraman Yigit, CEO of Olive Living.

Sustainable materials, smart home integrations, and modular designs are becoming basic facilities, as spaces need to balance aesthetics with functionality and technology, Yigit added.

How are interior design players responding?

As real estate developers coppe up to the segment, those within the home interior designs are exploring creative ways to set themselves stand out from their competitors, including collaboration with celebrity interior designers and fashion masters.

For instance, Bonito Design, a Lodha Ventures-backed full-home interior brand, has partnered with famed interior designer Gauri Khan and couturier Manish Malhotra to democratize celebrity interior design solutions for a wider audience.

“The cost of interior for a 2BHK, 3BHK or 4 BHK flats range anywhere between ₹8 - 30 lakh, and it is the big belly of our business…what we have noticed is that 90% of these are families are doing interior for the first time in their entire generation,” said Jugjot Singh Wasson, Chief Marketing Officer, Bonito Designs. These projects usually offer residential units priced anywhere between ₹1.5 to ₹4 crore, he added.

“There is a want from a consumer angle for an elevated experience. They also see it as status and modern perspective,” Wasson said, explaining the rationale behind onboarding acclaimed personalities in the field as celebrity designers.

In another example, To design luxury residential villas in Goa and Alibaug, fashion designer Kunal Rawal collaborated with premium real estate brand Boheim. Other prominent names that have collaborated on projects in the interior designing sector include designer duo Abu Jani and Sandeep Khosla, and designer JJ Valaya, among others.