Design build firms and interior designers in India are expecting more than 90% gross revenue in 2018

3 out of 5 businesses in the design industry of India reported an increase in gross revenue in 2017

Outlook for 2018 remains strong despite increasing competition,

according to the 2018 Houzz India State of the Industry

  • Design build firms were most likely to have seen revenue gains in 2017 relative to 2016 (72%), followed by interior designers and architects (61% and 56% respectively)
  • Design build firms and interior designers are expecting more than 90% gross revenue in 2018 followed by architects at 86%
  • To support this growth, design firms are planning to invest more this year in marketing and bring in large budget projects (each 58%)
  • Almost 25% interior designers had to bear a surge in cost of doing business
  • 42% architects faced difficulties in finding prospective customers

New Delhi, 13 June, 2018 Houzz Inc, the world’s leading platform for home remodeling and design, today released the 2018 Houzz India State of the Industry. The report provides an overview of 2017 performance and an outlook on 2018 for residential renovation and design businesses based on data reported by nearly 200 professionals in the Houzz India community. The study revealed that 2017 was a strong year for the majority of firms across the industry, with nearly half having met or exceeded gross revenue expectations for the year (47 percent).

Three in five businesses also reported an increase in gross revenue in 2017 relative to 2016 (61 percent), with nearly half of those reporting that revenues increased by more than 10 percent (48 percent). Design-build firms were most likely to have seen revenue gains relative to 2016 (72 percent), followed by interior designers and architects (61 and 56 percent, respectively).

Increases in revenue were not without challenges. Nearly two in five businesses reported difficulty finding customers and increased competition (38 and 24 percent, respectively). While managing customer concern over cost continues to be a challenge (37 percent), the report shows a six percent point decrease from the previous year (43 percent). Managing customer concerns over cost was felt most significantly by design build firms and interior designers (48 and 42 percent, respectively), while architects were most concerned with finding prospective customers (42 percent).

“Renovation business revenues have surpassed expectations for another consecutive year,” said Nino Sitchinava, principal economist at Houzz. “The overall outlook for 2018 remains optimistic as well, despite increased competition and challenges finding prospective customers.”

Looking Forward to 2018

Considering a 13 percentage point decrease in renovation professionals who anticipate a rise in the cost of doing business in 2018 (54 versus 67 percent in 2017), the majority of businesses are optimistic about continued gross revenue growth (89 percent). Design build firms and interior designers are most bullish in their expectations for increased gross revenue in 2018 (97 percent and 93 percent, respectively), followed by architects (86 percent).To support that growth, firms plan to invest in more marketing and bring in larger budget projects (each 58 percent). Other common strategies include improving customer experience (54 percent), offering new products and services (42 percent) and improving employee productivity (37 percent). Company headcounts are expected to rise in 2018 for more than half of design build firms, interior designers and architects (68, 60 and 52 percent, respectively).

There are more than 1.5 million active home renovation and design professionals on Houzz, including architects, interior designers, home builders & construction companies and design and build firms.

The Houzz India State of the Industry Study was conducted among home renovation firms in the Houzz India community that offer services related primarily to residential renovation and/or design. The study was fielded in December 2017 and January 2018. N=196.

About Houzz

Houzz is the leading platform for home renovation and design, providing people with everything they need to improve their homes from start to finish – online or from a mobile device. From decorating a small room to building a custom home and everything in between, Houzz connects millions of homeowners, home design enthusiasts and home improvement professionals across the country and around the world. With the largest residential design database in the world and a vibrant community empowered by technology, Houzz is the easiest way for people to find inspiration, get advice, find products and hire the professionals they need to help turn their ideas into reality. Headquartered in Palo Alto, Calif., Houzz also has international offices in London, Berlin, Sydney, Moscow, Tel Aviv and Tokyo. For more information, visit