2BHK Renovation Budget Planner: ₹8 Lakh - ₹20 Lakh Scenarios

Planning renovations for a 2BHK across a budget of ₹8 Lakh to ₹20 Lakh involves a range of scenarios, largely depending on the extent of renovation you have planned. Personal loans linked to the repo rate were set to become cheaper after the repo rate dropped in June 2025, making financing easier for homeowners. This blog breaks down the typical budget requirements and practical planning strategies for a 2BHK renovation in India.

Budget Breakdown: ₹8 to ₹20 Lakh

Basic Renovations: ₹8 Lakh to ₹14 Lakh
A basic, functional renovation would typically make use of budget-friendly materials and simple designs, including a basic modular kitchen, standard tiling, and simple, elegant finishes. Electrical wiring and plumbing fixtures would prioritise necessity over cosmetic value.

Higher-end Renovations: ₹14 Lakh to ₹20 Lakh
As your budget increases, so does your capacity for additional renovations. You can opt for improved aesthetics and functionality, better materials and finish, custom lighting and plumbing, and smart home features.

Rough cost estimates across both scenarios:

This rough estimate will vary according to apartment size (generally 800-1200 sq. ft. for a 2BHK), choice of materials used, labour costs prevalent in your city, and the nature of the job. 

Also Read: Transform Your Living Space: Luxurious Home Makeover with a Prime Personal Loan

Ideal Cost Breakup for a 2BHK Renovation

Regardless of whether you’re opting for a lower-end cosmetic renovation or a more extensive change, splitting your budget across certain factors is crucial. This ensures you don’t overspend on one area while ignoring another. You can use this breakdown to begin with and then make tweaks depending on what the priority of your renovation is:

●    Structural changes: 15-20%
●    Plumbing and electrical work: 10-15%
●    Flooring and tiling: 10-15%
●    Kitchen: 10-15%
●    Bathrooms: 5-10%
●    Windows, doors, and roofing: 10-15%
●    Interiors and paint: 10-15%
●    Design and supervision: 5-15%
●    Contingency for unplanned expenses: 10-15%

Also Read: Documents Required for a Personal Loan for Home Renovation

Planning Your Budget for 2BHK Renovations

Keep the following steps in mind when approaching your 2BHK renovation budget planning:

Plan in Detail Before Execution
Spend time creating detailed layouts for each room, including all furniture and fixture placements, as well as plans for false ceilings, extra fittings, and other features. Show this to your contractor before you begin, and confirm you’re pricing before work begins.

This will help prevent unnecessary changes in the design or cost midway through the project. The more precise your plan, the easier it is to manage both time and money.

Mix and Match Materials Wisely
If you’re looking to make the most of your budget, whether ₹8 Lakh or ₹20 Lakh, consider reevaluating where you place your materials. Invest in high-quality finishes for visible areas like the living room or kitchen countertops, since they make the biggest impression.

For lesser areas like utility spaces or secondary bedrooms, go for budget-friendly finishes that may not look aesthetic but will get the job done. This way, your budget will have an even distribution of aesthetics and durability.

Consider Retaining Existing Plumbing and Electrical Layouts 

Any shifts of water pipelines, drainage points, or electrical wiring will significantly increase your budget. In addition, moving wet areas often requires permission from local authorities. As much as possible, try to keep the current setting of water, drains, and plumbing the same. 

The same logic applies to electrical layouts; if you intend on rewiring your home for added aesthetics or smart-home functionality, ensure you have the budget to put down for it. This decision alone will impact the money and weeks of labour that will go into the renovation.

Get Multiple Quotes

Contact at least three or four different contractors, asking for detailed breakdowns of the costs. By comparing these various quotes, you gain insight into the prevailing market price and, consequently, some bargaining power. Don’t hesitate to ask for a discount or for package deals that can include labour and materials.

Also Read: Maximising Your Savings: Tax Benefits of Home Renovation Loans

To Conclude

A well-planned 2BHK renovation can significantly enhance your living experience and property value. The key lies in realistic budgeting, smart cost management, and choosing the right financing option based on your financial situation.

Whether you opt for a basic refresh or a premium makeover, proper planning and financing are essential. Opt for a Personal Loan from Poonawalla Fincorp for a quick approval process and competitive interest rates, ensuring your renovations take place while your finances remain secure.

Frequently Asked Questions

What permits are required for a 2BHK renovation in India? 
For structural changes, you need approval from your housing society and the local municipal corporation. Non-structural work like painting, flooring, or fixture replacement typically doesn’t require permits. To be on the safer side, always check with your society’s management committee before starting major work.

How long does a typical 2BHK renovation take? 
A basic renovation takes 3 to 4 months, while extensive renovations can take 5 to 6 months. Timeline depends on the scope of work, material availability, and whether you’re living in the house during renovation. You should also consider other factors, such as monsoon or festival seasons.

What’s the best time to start a renovation? 
October to February is ideal, as weather conditions are favourable and material costs are often lower. It’s best to avoid the monsoon season (June-September) for exterior work and plan around major festivals when labour availability is limited.

How much should I keep aside for unexpected expenses? 
Always budget an additional 15-20% for contingencies. Unexpected issues like hidden plumbing problems, electrical rewiring needs, or structural repairs commonly arise during renovation. This buffer helps avoid project delays or compromising on materials and finishes.

Can I get tax benefits on renovation loans? 
Home improvement loans may qualify for tax deductions under Section 24(b) if the renovation increases the property’s value. However, it’s recommended to consult a tax advisor to determine the applicable deductions based on your specific situation and loan type.