How To Plan A Home Renovation Budget
Renovation budgets are harder than new-build budgets because you are pricing things you cannot see until you open a wall. The method below assumes that, instead of pretending otherwise.
Hold 12–15% of the renovation value as contingency, compared with 8–10% for new construction, because concealed conditions are only discovered after demolition begins.
Set the number from value, not from wishes
Decide what the finished home should be worth to you to live in or to sell and work backwards. For most Indian homes, spending beyond 20–25% of property value on renovation stops returning value on resale, though it may still be worth it for comfort.
Split the budget into four buckets
Structural and services (plumbing, electrical, waterproofing, civil). Fixed finishes (flooring, tiles, doors, paint). Joinery (kitchen, wardrobes, units). Loose and soft (furniture, curtains, lighting fixtures, décor).
Fund the buckets in that order. The first two cannot be phased later without demolishing the ones after them.
The hidden costs, listed honestly
| Hidden cost | Typical impact |
|---|---|
| Concealed plumbing or wiring condition | ₹40k – ₹1.5 L |
| Debris removal and society charges | ₹20k – ₹60k |
| Lift access and building deposits | ₹15k – ₹75k |
| Temporary accommodation and storage | Varies by duration |
| Wastage and breakage (5–8%) | 5–8% of material value |
| Post-handover touch-ups | 1–2% of project |
Contingency and phasing
Hold 12–15% contingency on renovation, higher than the 8–10% normal for new builds. If money is tight, phase by room but never split services work across phases, because opening the same wall twice costs more than doing it once.
Where to spend and where to stop
Spend on waterproofing, electrical capacity, kitchen carcass and hardware. Stop at decorative panelling, imported finishes in low-visibility rooms, and anything that is fashionable now and permanent later.
