Houses are a huge financial investment for most Indian buyers. Apart from the financial investments, homes are also invested with emotional attachments, meaning that many families would not prefer to sell their homes. However, houses are not built to last forever and often require upgrades. Two types of upgrades are common- house extensions and renovations. Continue reading to understand home renovation vs home extension, including differences in types, timelines, cost considerations and legal processes, so that you can make an informed decision on which to choose for your project.
What is Home Renovation?
Home remodelling or renovation refers to making changes in an existing building without increasing its area. This process can make an old home feel new without too many changes and without much expenditure. It is generally done for one of the following reasons:
- To upgrade or modernise old-fashioned architectural styles, amenities or building features.
- To restore a house to its traditional roots.
- To repair old or new construction defects.
- To change the layout of the house. For example, from typical layouts to more open floor plans.
What is Home Extension?
House extension refers to enlarging the size of an existing building by constructing additional rooms or spaces. It may be done for several reasons, including growing family sizes, increased requirements and changing priorities. The process makes a home larger in size and area and may or may not involve structural changes to the existing building. It acts as a cost-effective way to accommodate larger or higher numbers of families without buying new residential spaces.
Home Renovation vs Home Extension: The Differences
Types of Renovation and Expansion
Types of Old House Renovation
Three major types of renovation happen in old homes:
- Cosmetic Renovation: Involves minor aesthetic additions, changes and/ or upgrades to elements like lighting design, painting, false ceilings, flooring and wall cladding, along with small repairs.
- Structural Renovation: Includes removal, addition or changes to non-load-bearing elements like partition walls to make home improvements, along with electrical and plumbing modifications.
- Comprehensive Remodels: These include giving a complete makeover to one or more specific spaces. For example, kitchen renovations may involve the complete dismantling of the current setup to install a new modular kitchen with modular kitchen countertops, cabinets and new plumbing and electrical layouts.
Types of Home Addition
The following types of house extensions can commonly be observed:
- Single, Double or Multi-Storey Extensions: This includes adding one or more rooms across one or more floors of an existing building. These extensions may require strengthening of the existing structural framework, i.e., columns, beams and slabs.
- Rear, Side or Front Extensions: Additional rooms or spaces like verandahs and porches are constructed such that they are attached to one or more walls on the ground floor of an existing building. These generally require new foundations and structural frames to be built.
- Outbuildings: These are separate structures such as parking garages, gazebos or greenhouses built close to an existing home, but within the same site boundary.
Timelines for Building Extensions and House Renovations
Old Home Renovation Timeline
- Cosmetic Renovations: 1-3 months
- Structural Renovations: 2-6 months
- Comprehensive Remodels: 6-12 months
House Extension Timeline
House additions typically require a minimum period of 3 months (for any type) as they involve structural changes or additions. When new foundations and structural frames need to be built, the extensions require a minimum of 5 months to be completed. Additionally, acquiring regulatory permits can take another 1-2 months.
House Renovation Cost vs Extension Cost
Home Renovation Cost
- Cosmetic and Structural Renovation: Starts at a basic price of ₹500/sq ft, while luxury remodel prices can go up to ₹5000/sq ft.
- Comprehensive Remodels: The price varies depending on the space and type of finishes required. For example, the minimum modular kitchen cost for a kitchen makeover is around ₹1.75 lakhs.
Extension Cost
For constructing a new space in an existing house, a minimum cost of ₹1500/ sq ft is typically incurred. However, the addition of temporary structures might cost less, while multi-storey extensions cost much more.
These are approximate values, and exact figures depend on several factors like type of finishes, extent of remodelling/ area of extension, materials used and market trends. Several other charges like design and consultation fees, approval charges and taxes are also often involved.
Financing Options for Home Additions vs Renovations
Loans are the most common way of financing any construction or related activities. For home alterations and extensions, different kinds of loans are offered by Indian banks:
Home Renovation Loans
These loans generally cover small amounts and have short repayment periods. The interest rates typically vary from 7% to 9%. The loan amount provided varies depending on the type of house remodeling, but up to 80% of the total cost is generally allocated.
Home Extension Loans
A maximum loan of ₹1 crore can be taken for extending homes. Up to 80% of the extension cost is provided by banks as loans, with longer repayment periods up to 30 years. Interest rates generally vary from 8% to 12%.
Legal and Regulatory Procedures
House Renovation
Generally, no legal or municipal permits have to be obtained for renovations unless any changes that violate local regulations are undertaken. However, if the house is located inside a gated community or apartment complex, society approvals may be required.
House Extension
Municipal permits and building plan approvals must be obtained when any additions or extensions are undertaken. New extensions must adhere to local regulations regarding FAR, setbacks and building heights. Non-compliance can lead to fines and legal action.
Future Outlook
Both home additions and remodels require differing monetary investments. The returns (when the house is rented out or sold) and the increase in property value also differ significantly. Returns on renovations can vary from 50-80%, while additions can offer 70-100% returns on investment (ROI) within a few years. However, these values can vary based on factors like location, demand and supply, type of remodeling/ size of extension and market trends.
Which to Choose: Renovation or Extension?
Key Takeaways
From the above sections, the following points can be summarised:
| House Renovation | House Extension | |
| Meaning | Involves refreshing, updating or remodelling existing spaces without adding extra square footage. | Includes adding extra area, which expands a home beyond its original boundaries. |
| Types | Cosmetic and structural renovations, comprehensive remodeling | Single or multi-storey extensions, ground extensions, outbuildings |
| Timelines | Varies based on the type, but is typically completed within 1-9 months | Generally requires a minimum of 3-6 months |
| Cost | Minimum home remodel cost is around ₹500/ sq ft | Minimum cost is around ₹1500/ sq ft (excepting temporary structure additions) |
| Financing Options | Smaller loan amounts, lower interest rates and shorter payback periods | Larger loan amounts, higher interest rates and longer payback periods |
| Legal Procedures | Generally, it does not require any municipal permits | Generally requires municipal permits and building plan approvals |
| Future Outlook | Smaller returns on investment | Larger returns on investment |
Factors to Consider While Opting for Renovation vs Extension
While both options have their pros and cons, the final choice depends on several factors, like:
- Family and individual requirements
- Project budget and financing options
- Local and municipal regulations
- Condition of the existing house and its structural capacity
- Location, demand and supply for different types of houses
Getting the Best House Renovation and Extension Services
Both house extension and renovation require a careful study of the structural and architectural conditions of the existing house to avoid any damage. Brick & Bolt offers comprehensive extension and home renovation services at competitive market prices. Aided by a patented quality checking system (QASCON) and streamlined building materials supply, these services ensure top quality and zero delays. The company also collaborates with leading architects, designers and renovation contractors to provide customised designs that suit every requirement and budget. To get your house construction and renovation done by industry experts, get in touch with Brick & Bolt today!
Apoorva H P Achar