According to a Cushman and Wakefield report, the demand for residential spaces is forecasted to hit 4.25 million units while the demand for office spaces is expected to hit 400 million sq.ft. between 2010 and 2014 in India.
Another major segment is contract furniture which is driven by the increasing hotel developments and tourism demand in the country. Tourism, clubbed with the increase in spending on lifestyle products is predicted to be favorable for the Indian furniture industry.
The furniture industry in India is considered as a non organized sector, with handicraft production accounting for about 85% of the furniture production in India The entry of international brands and changing consumer preference has led to the emergence of furniture retailing in India. The size of the Indian furniture retail market is estimated around Rs.30, 000 crores However, the furniture industry in India is not without its worries.
The furniture sector makes a marginal contribution of 0.5% to India's GDP. Moreover, even if the production is increasing every year, it is mainly in the unorganised sector. In fact, the furniture industry in India employs an estimated 300,000 workers. Globalization and a good pay package of the middle class India is a great boost for the furniture retail business in India.