Experiences Edge Out Physical Goods in Indian Household Spending, CBRE Finds

When you ask a friend in Mumbai or Delhi where they’d rather spend their next paycheck, the answer is rarely a new TV set. It’s more likely to be a weekend getaway, a table for two at a trendy restaurant, or tickets to a concert. That sentiment, once thought to be a niche urban trend, is now showing up in the numbers, according to a fresh report from global real‑estate firm CB R​E.

The research surveyed a cross‑section of Indian households—spanning metros, tier‑2 cities and even some smaller towns—and tracked how they allocate disposable income. The headline? Expenditure on experiences is projected to overtake spending on physical goods by the end of 2025. In plain language, people are choosing memories over material possessions, and the data backs it up.

What’s driving this shift? A cocktail of factors, really. After a long, pandemic‑induced pause, many families are eager to “make up for lost time.” The travel sector, which had been in the doldrums, is seeing a resurgence: domestic holiday bookings are up roughly 38 % year‑on‑year, according to industry insiders. Meanwhile, dining out has bounced back faster than most retailers, with restaurant receipts climbing 27 % in the last twelve months.

But it’s not just about vacations and meals. Entertainment—think movies, live music, art exhibitions—has also entered the limelight. Spending on cultural events grew by an estimated 22 % last year, a sign that people are seeking out shared experiences that enrich their social lives.

Contrast this with the trajectory of traditional goods. Sales of furniture, appliances and electronics, while still robust, are growing at a modest 5‑7 % pace. The gap is widening, and CB R​E warns that retailers who continue to rely solely on product‑centric strategies may find themselves left behind.

From a real‑estate perspective, the findings have practical implications. Mixed‑use developments that blend retail, leisure, and hospitality are becoming the gold standard. Developers are now incorporating co‑working spaces, boutique cinemas, and food‑court concepts into new projects to capture that experience‑driven spend.

There’s also a generational angle. Millennials and Gen Z, who now make up a sizable chunk of the Indian consumer base, prioritize flexibility and social connection. They’re more likely to trade a new gadget for a weekend trekking trip than the other way around. Yet even older cohorts are getting in on the action, perhaps because the pandemic reminded everyone of the value of “time well spent.”

One surprising nuance the report highlights is the rise of “micro‑experiences.” These are lower‑cost, high‑frequency activities—like a spontaneous coffee date, a pop‑up art show, or a short road‑trip—that collectively add up to a sizable share of household budgets. Retailers and brands that can tap into this micro‑moment mindset stand to benefit.

What does this mean for the average Indian shopper? In practical terms, you might notice more promotions tied to travel packages, restaurant vouchers, or event tickets rather than straight discounts on televisions or sofas. It also suggests that loyalty programmes will increasingly reward experiential spend—think points you can redeem for a concert seat instead of a cash back on a purchase.

Looking ahead, CB R​E projects that by 2025, experience‑related spending will account for roughly 55 % of total discretionary expenditure, nudging past the 45 % share held by physical goods today. The trajectory is clear: as incomes rise and the economy stabilises, the appetite for enriching, share‑worthy moments will only grow.

For businesses, the message is simple yet profound: adapt or risk obsolescence. Whether you’re a mall operator, a property developer, or a consumer‑goods brand, understanding that the modern Indian household values memories as much—if not more—than material items is the first step toward staying relevant in a rapidly evolving market.