Not all home renovations increase property value. Some upgrades deliver high ROI, while others only add aesthetic appeal without boosting resale price. In 2025, with property markets shifting across Indian metros, it’s vital to know which renovations add value and which do not. This guide breaks down the top ROI renovations, cost-benefit analysis, and expert valuation tips for homeowners.
In Real Estate, renovating to increase property value is common but outcomes vary. Here’s a Case Study:
Case Study:
A Suburban Homeowner noticed wear and tear in her three-bedroom house. Motivated by neighboring property value increases post-renovation, she decided to modernize her home.
Planned Renovation:
Focused on the kitchen, bathrooms, and flooring, contractors were hired, materials chosen, and a budget set.
Investment and Expectations:
Considerable time and funds were devoted to renovations, aiming for increased property value. Research ensured renovations matched market preferences, with improvements intended for a favorable return on investment.
Outcome:
Renovations transformed the home, featuring modern kitchen appliances, luxurious bathrooms, and new flooring throughout.
Evaluation:
Despite impressive renovations, the expected increase in property value was not realized due to market conditions and renovation costs.
Key Takeaways:
Careful planning and realistic expectations are crucial in home renovations. Consulting professionals and considering market dynamics are vital for informed decisions.
Conclusion:
While renovations can boost property value, outcomes vary. With careful planning and research, homeowners can maximize benefits and create appealing spaces.
Planning to renovate before selling? Get an RNC property valuation to check ROI potential.
Read More Case Studies:
FAQs
1. Which renovations add the most value to a house in India?
Kitchen remodels, bathroom upgrades, and energy-efficient improvements add the highest ROI.
2. Do luxury renovations increase property value?
Not always. High-end finishes may not give proportional ROI unless in premium locations.
3. How much should I spend on renovations before selling?
Experts recommend 1–3% of the property’s value for renovations before resale.
4. Do buyers in India prefer furnished or semi-furnished homes?
In metros, semi-furnished homes with modern kitchens and bathrooms see faster resale.
About the author:
Sahil Narula
Sahil Narula is the Managing Partner at RNC Valuecon LLP and a Registered Valuer with IBBI. He brings over a decade of experience in Valuation Services, Corporate Finance, and Advisory, having led numerous complex assignments under the Insolvency & Bankruptcy Code, 2016, Mergers & Acquisitions, Insurance, and Financial Reporting.
He is a regular speaker at national forums (ASSOCHAM, CII, ICAI, IBBI, Legal Era) and currently serves as Co-Chairman of ASSOCHAM’s National Council on Insolvency & Valuations and a member of CII’s Task Force on Insolvency & Bankruptcy.
🤝Connect with Sahil on LinkedIn.