Market Trends of India Interior Design Industry
Rise in the Real Estate Sector is Driving the Market
The real estate sector in India contributes 12% to the country's GDP by 2025. The real estate sector in India is projected to be the second-largest source of employment in the country after the agricultural sector. Furthermore, it is anticipated that the sector will experience an increase in the amount of investment from non-resident Indians (NRIs) in both the short and long term. It is anticipated that Bengaluru will be the most preferred property investment location for NRIs, with Ahmedabad being the second most preferred city, followed by Pune and Chennai. Other cities that are expected to attract NRI investment include Goa and Delhi. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs. India's residential property market experienced a record-breaking year in FY23, with home sales reaching a value of INR 3,47 lakh crore (approximately USD 42 billion). This was a 48% increase from the previous year, and the volume of sales also followed a strong growth pattern, increasing by 36% to reach 379.095 units sold. Real estate developers in India's biggest cities are on the cusp of achieving huge success in 2023 - they will be able to build around 558,000 homes. In the first nine months of 2022, there were more than 1,700 land deals in the top eight cities. Developers are expecting demand for office space in special economic zones to go up after the SEZs Act was replaced in February 2022. As the real estate industry continues to grow, the demand for interior designing services is expected to increase in the coming years.
Commercial Segment is Dominating the Market
The demand for commercial real estate has been steadily increasing, leading to the emergence of interior designing solutions as a trend. As the demand for commercial space continues to grow, the sector is likely to experience a significant opportunity to capitalize on in the years to come. For instance, the real estate group Chintels recently announced to invest in a commercial project worth INR 400 crore (USD 53.47 million) in Gurugram. The project is set to have a floor area of 9.28 lakh sq. ft. In the past year, there has been a sharp rise in land deals across India's top seven cities. Foreign investment in commercial real estate in India reached a record high of USD 10.3 billion between 2017 and 2021. Last year, India's capital investment in real estate reached USD 7.8 billion. In the forecast period, developers are predicting that demand for office space in Special Economic Zones (SEZs) will skyrocket after the SEZs Act is replaced.
With the transformation of the Indian work environment, office furniture and interior design have undergone a significant transformation. Office commercial spaces are likely to opt out of the various interior design services available in the market. Both traditional and modern offices will be looking to refurbish their office spaces, as well as start-ups and newly established offices. Additionally, hotels are emerging as trendsetters, offering design guidelines that combine creativity and sustainability.
