After buying a home, budget around 10 % of its cost for interiors—this covers furniture, lighting, wardrobes, and modular kitchens. Plan your home interior budget after buying smartly, and explore financing options like personal loans or home loan top‑ups to manage post‑possession home expenses.
Congratulations on your new home! But don’t let the renovation blindside you: many buyers forget to account for interior design costs after possession. Understanding the 10% rule for home interiors ensures your dream space doesn’t derail your budget.
What Is the 10% Rule for Home Interiors?
The 10% rule for home interiors says you should allocate approximately 10% of your home’s purchase price toward interior design and decor. Experts actually recommend a range of 10–15%, while premium homes may see 20–30% allocation, especially for high-end finishes or villas.
This percentage-based approach helps you prepare early and avoid financial stress post-possession.
Where Does That Interior Budget Go?
Breakdown of Interior Design Cost Planning
| Category | Typical Share of Interior Budget |
| Furniture & Decor | 25–35% |
| Modular Kitchen | 20–30% |
| Wardrobes & Storage | 15–25% |
| Lighting & Fixtures | 10–15% |
| Soft Furnishings (curtains, rugs, etc.) | 10–15% |
| Design Consultancy Fees | 5–20% depending on scope |
According to design professionals, interior designer fees usually amount to 10–15% of total project cost, or ₹50,000 to ₹500,000 flat fees, based on size and customization.
Examples:
- A 2BHK might cost ₹3–7 L interior setup.
- A 3BHK premium finish could reach ₹7–15 L.
How Can You Finance Home Interiors in India?
Financing Options for Interiors
- Personal Loans – quick, unsecured, suitable for budget-friendly interiors.
- Home Loan Top‑Up Loans – added to your existing loan, often lower interest rates than personal loans and fewer docs.
- Home Improvement Loans – secured against property, longer tenure, tax benefits possible.
- Loan Against Property (LAP) – borrow against home equity, lower interest rates.
- DIY savings & credit cards – for small purchases; beware high interest.
What Expert Tips Can Help You Budget Smart Without Overspending?
- Plan Before Possession: Budget ahead using the 10% rule to avoid overshoot.
- Set Priorities: Split between essentials (modular kitchen, storage) and aesthetics (decor, lights).
- Use Modular Solutions: Pre-engineered fittings save both cost and time.
- Buy in Phases: Start with essentials; upgrade later.
- Leverage Sales & Local Sourcing: Festive offers and local craftsmen can help trim costs.
- Track Expenses Closely: Use a spreadsheet or budget app.
- Negotiate Fees: Designers on flat fees or per sq ft often offer better value.
FAQ’s
1. What is the 10% rule for home interiors?
The 10% rule suggests that homeowners should budget at least 10% of their property’s purchase value for interior design and furnishing. This estimate includes essential components like furniture, wardrobes, lighting, modular kitchen setups, and décor. Following this rule ensures that your home feels complete, functional, and personalized after possession.
2. Why should I budget separately for home interiors?
Home interiors are often not covered in the basic property cost. From furniture to storage, lighting, and kitchen fittings, these post-possession expenses can significantly impact your finances. Setting a separate interior budget helps avoid overspending and ensures a smooth transition into your new home.
3. What are the biggest post-possession home expenses in India?
The most common post-possession expenses include:
- Modular kitchen setup
- Wardrobes and storage solutions
- Lighting and false ceiling
- Furniture and décor
- Curtains and blinds
- Appliance installation and utility setup
These can collectively cost 8–15% of your property value, depending on finishes and materials.
4. How much does interior design cost in India?
Interior design costs in India typically range from ₹500 to ₹2,500 per sq. ft. depending on the level of customization, materials used, and city. For a 1,000 sq. ft. apartment, the interior budget can range from ₹5 lakhs to ₹25 lakhs, aligning well with the 10% rule for most homeowners.
5. Can I get a loan to finance home interiors in India?
Yes, many banks offer home improvement loans or top-up home loans specifically for interiors. These loans often come at interest rates similar to home loans, with flexible repayment options. You can also explore personal loans, though they may carry higher interest rates.
6. How do I plan my home interior budget smartly?
Here’s how to plan:
- Set a budget cap based on the 10% rule
- Prioritize essentials: kitchen, wardrobes, furniture
- Get multiple quotes from interior designers
- Opt for modular and phased installations
- Track expenses and avoid impulse upgrades
This ensures cost control without compromising style.
7. Is it better to hire an interior designer or DIY?
If you have a clear vision and time, DIY can save costs. But hiring an interior designer ensures professional space planning, material optimization, and time efficiency. For premium or custom-designed homes, a designer is often worth the investment.
8. Which rooms need the most interior investment?
Typically:
- Kitchen: Modular setup with appliances
- Master Bedroom: Wardrobes, bed, lighting
- Living Room: Sofa, entertainment unit, false ceiling
These rooms are the most used and visually prominent, making them priority areas for budget allocation.
9. What are some cost-saving tips for furnishing a new home?
- Choose ready-to-assemble furniture
- Buy during festive sales
- Use multi-functional furniture
- Prioritize essentials first
- Explore local carpenters for custom work
These hacks can reduce your interior budget by 15–30%.
10. How can budgeting for interiors increase home resale value?
Well-designed interiors enhance functionality, comfort, and visual appeal, making your home more attractive to buyers. Features like modular kitchens, concealed storage, and smart lighting can improve ROI and speed up resale in a competitive market.
Conclusion
Budgeting for interiors using the 10% rule ensures you turn your house into a home, worry‑free. Smart financing—whether through loans or phased spending—and planning early help align your vision with your budget. Ready to explore turnkey interior solutions or financing assistance? Contact our team today for comprehensive guidance.
