Planning to Renovate Your Home? Here’s What It Might Cost You

Summary

Home renovations, such as a fresh coat of paint, a modular kitchen, new flooring, and a complete layout change, can be exciting, but they also come with a cost. Whether upgrading for comfort or increasing your property’s value, it’s important to plan your budget. In this blog, we break down the cost of renovating a home in India based on the type of work, materials used, and space size, so you can dream big without overspending.

Key Takeaways

• Renovation costs vary based on the extent of work and materials used
• Minor upgrades can start from ₹1 lakh, while major renovations can cross ₹10–15 lakh
• Labour, design, and hidden charges add to the total
• Budgeting early helps avoid unexpected expenses
• Loans or top-up options can support your renovation plans

Table of Contents

1. Why Renovate Your Home?
2. What Factors Affect Home Renovation Cost?
3. Average Cost by Type of Renovation
4. Sample Budget for a 2 BHK Flat
5. Hidden Costs You Should Plan For
6. Tips to Save Money on Renovation
7. Financing Your Home Renovation
8. Final Thoughts
9. FAQs

1. Why Renovate Your Home?

Renovation can be a smart move if:

• You’ve lived in the same house for many years
• Your lifestyle needs have changed (like a growing family)
• You want to improve resale value
• You simply want a more modern and comfortable space

A well-planned renovation can transform your home without the cost of buying a new one.

2. What Factors Affect Home Renovation Cost?

The total renovation cost depends on:

• Scope of work: Full makeover or just a few rooms?
• Carpet area: Bigger homes = higher cost
• Material quality: Budget, mid-range, or premium finishes
• Labour rates: Vary by city and location
• Design complexity: Simple updates cost less than structural changes
• Contractor vs interior designer: Designer-led projects may cost more but offer better finish

3. Average Cost by Type of Renovation

Here’s a basic estimate of renovation costs in India (2025 rates):

Type-wise estimate:

• Painting: ₹20 – ₹30 per sq. ft.
• Flooring replacement: ₹80 – ₹250 per sq. ft.
• Kitchen renovation: ₹1.5 – ₹5 lakh (modular setup)
• Bathroom renovation: ₹80,000 – ₹2 lakh
• Electrical & plumbing: ₹50,000 – ₹2 lakh
• False ceiling: ₹100 – ₹200 per sq. ft.

4. Sample Budget for a 2 BHK Flat

Let’s assume a 2 BHK flat with 900 sq. ft. carpet area.

This can go up or down based on location, material choices, and whether you hire professionals or manage yourself.

5. Hidden Costs You Should Plan For

• Approval fees (in case of structural changes)
• GST on labour and materials
• Waste disposal and clean-up charges
• Temporary accommodation if you need to vacate during work
• Upgrades to old wiring, plumbing, or drainage

Always keep a buffer of 10–15% in your budget for unexpected expenses.

6. Tips to Save Money on Renovation

• Reuse existing materials (tiles, wood, fittings) wherever possible
• Get multiple quotes from contractors before finalizing
• Buy materials yourself instead of through contractors to reduce markup
• Schedule work during off-season (monsoon and post-festive months)
• Avoid last-minute design changes, they cost more and delay the project
• Plan everything in writing to avoid hidden charges

7. Financing Your Home Renovation

If you’re short on funds, you can:

• Take a home renovation loan offered by most banks and NBFCs
• Use a top-up loan on your existing home loan
• Opt for a personal loan if the amount is small and quick disbursal is needed

Make sure to compare interest rates, repayment terms, and documentation before choosing a financing option.

8. Final Thoughts

Now that you know how much it costs to renovate a home, planning and budgeting smartly is easier. Renovating your house doesn’t have to drain your savings, especially if you plan well, compare costs, and explore financing options. Whether adding a new look to your living space or fixing up an old layout, your dream home is just a few careful steps away. Start with a budget, stick to it, and enjoy the transformation process.

9. FAQs

Q1. How much does it cost to renovate a 2 BHK in India?
Typically ₹6 to ₹12 lakh, depending on material quality, design, and labour charges.

Q2. Can I take a loan for home renovation?
Yes, you can. Most banks and NBFCs, including Piramal Finance, offer dedicated home renovation loans or top-up loans if you already have a home loan. These loans help you finance upgrades like painting, repairs, or home improvements without dipping into your savings.

Q3. Is interior design included in the renovation cost?
Only if you hire a designer. Otherwise, you pay separately for materials, labour, and design.

Q4. How can I reduce renovation costs?
Plan well, avoid last-minute changes, reuse materials, and compare contractor quotes.

Q5. Do I need permission to renovate my home?
If you're making structural changes or altering the building layout, municipal approval may be needed.

Q6. Can I do a partial renovation, room by room?
Yes. Many people renovate their homes in phases to manage costs better.

Q7. Is GST applicable to renovation work?
Yes. GST is charged on both materials and services. Confirm rates with your contractor.