Luxury real estate market trends: Developers turn to interior design to make apartments more exclusive

With the luxury real estate market on a roll, real estate developers are now tapping into the interior design segment to make apartments and villas more appealing and expensive to the discerning homebuyers. While many have joined hands with players in the space, some have launched dedicated in-house subsidiaries to cater to the evolving needs of their clientele.

Presently, India’s home decor market is estimated to be worth over $32 billion. However, a majority of this space is largely unorganised, with less than 10% of the overall market resting in the hands of organised players. Simultaneously, the sector has seen mushrooming of new entrants over the last few years, including Livspace, HomeLane, Infurnia and Spacejoy, among others.

“When you compare apples to apples, we have an edge over others because we’re able to provide more facilities…This will help us in a lot more conversions for the flat itself, not just interiors,” a Bengaluru-based real estate developer said. The real estate player targets a 10% margin in this arm, to manage the day-to-day overheads.

Amongst numerous names pan-India, which have forayed into this ancillary industry, is Bengaluru-based Gopalan Enterprises. The company, earlier this year, launched an in-house interior design department named ‘Grham’.

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“Today, people do not have time to do interiors on their own. So they want a hotel kind of set-up with the entire furniture given. That is the kind of comfort customers are looking for, where a flat is handed over with interiors, like in established markets such as Singapore and Dubai,” explained C Pramod, Director, Gopalan Enterprises.

The concept of interior design has evolved from the days when the priority was to secure a home and interiors were done in intervals 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 customisation, that reflect their personalities, they said.

Presently, about 70-80% of Gopalan Enterprises’ customers enquire about interior design services while booking an apartment. The company currently takes up 30-40 projects per month within a budget of ₹5 lakh, 7.5 lakh and 10 lakh for its finished 2BHK residential units. There is a corresponding increase of ₹2 lakh in each category for a unit of 3BHK configuration.

With a 45-day target, Gopalan Enterprises’ packages command a 30% premium over what local contractors charge due to quality differences, the top company executive said.

The realty player’s upcoming projects will be inclusive of basic interiors. “The advantage with the builder providing services is, if there is some customisation 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 industry has also garnered attention from the commercial real estate segment of late with the rise of the flexible workspace and co-living segments in the country.

“Everything boils down to the entire experience for an occupier for their employees, and design is a very critical aspect of that. It has evolved a lot. This industry has upped the bar, otherwise earlier it was a very cookie-cutter model in terms of how an office should be, how it should function,” a top executive of a Bengaluru-based managed office solutions provider said, emphasising that it adds value to the business.

“Also, what has happened is the amenities aspect has been added in, which typically was not there earlier. So that is being integrated in the base build itself. So a lot of feedback is being taken from us by the builder also on how the base asset itself can be integrated on day one so the entire experience can be formed,” the individual added.

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Another player within the category, IndiQube, on September 17 launched a first of its kind experience centre 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 centre allows businesses to explore possibilities for crafting their ideal workspace.

Meanwhile, the upcoming co-living segment has made a notable contribution too, experts highlighted.

“The interior design industry has certainly gained more attention with the rise of co-living in India. Developers are increasingly focusing on functional, modern, and community-driven designs to cater to millennials and Gen Z,” said Kahraman Yigit, co-founder and CEO, Olive Living.

Modular designs, sustainable materials, and smart home integrations are becoming essential, as spaces need to balance aesthetics with flexibility and technology, Yigit added.

How are interior design players responding?

As real estate developers warm up to the segment, those within the home interior space are exploring innovative ways to set themselves apart from their competitors, including partnering with celebrity interior designers and fashion maestros.

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 democratise celebrity interior design solutions for a wider audience.

“(Interiors for) a 2BHK, 3BHK or 4 BHK in the range of ₹8 - 30 lakh is the larger belly of our business…what we have seen is that these are families wherein 90%-plus are doing interior design for the first time in their generation outlook,” said Jugjot Singh Wasson, Chief Marketing Officer, Bonito Designs. These projects are typically carried out in homes priced anywhere between ₹1.5 - 4 crore, he added.

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

In another example, fashion designer Kunal Rawal collaborated with luxury real estate brand Boheim to design luxury residential units in Goa and Alibaug. Other marquee names which have collaborated on projects in this sector include designer duo Abu Jani and Sandeep Khosla, and designer JJ Valaya, among others.

Globally, top fashion labels have an extension of their brands in the home line segment, or have lent their expertise to real estate brands via collaborations, such as Armani, Louis Vuitton, Fendi, Gucci and Calvin Klein, to name but a few.