Dilaawar Interiors

Renovation vs New Construction: Which is Better for Your Budget ?

Renovation vs. New Construction: Your grandfather’s house in DHA Lahore. Your aunt’s old property in Gulshan-e-Iqbal Karachi. That affordable plot with a 40-year-old structure in Islamabad. Or perhaps you’ve just inherited a family home that’s seen better days.

You’re standing at a crossroads: Renovate or demolish and build new?

On one hand, renovation seems logical – you already have walls, a roof, foundation. Just update it, right? Should be cheaper than starting from zero. On the other hand, you’re looking at cracked walls, outdated plumbing, a layout that doesn’t work for modern living, and you wonder if you’re throwing good money after bad.

At Dilaawar Interiors, we’ve guided hundreds of Pakistani families through this exact decision. We’ve seen renovations that cost MORE than new construction. We’ve seen demolitions that were the smartest investment. We’ve seen the reverse too – beautiful renovations at half the cost of rebuilding, and unnecessary demolitions that wasted perfectly good structures.

Today, we’re breaking down everything you need to know to make the right decision for YOUR situation – real costs in Pakistan, hidden expenses, timelines, pros and cons, and a clear decision-making framework.

Confused about renovating vs. rebuilding? Get FREE expert consultation to analyze your specific situation! Contact Us Now


The Pakistani Context: Why This Decision Matters More Here

Before diving into costs and comparisons, understand why this decision is particularly crucial in Pakistan:

Unique Factors:

Property Values in Established Areas:

  • Old houses often in PRIME locations
  • DHA , Gulberg, Clifton, F-sectors
  • Land value >> structure value
  • Demolishing = only losing structure value, keeping land

Construction Quality Variations:

  • Old Pakistani homes (pre-1990s) often BETTER construction
  • Solid brick, real materials
  • Modern cheap construction sometimes worse
  • Need to evaluate individually

Family Inheritance:

  • Emotional attachment to ancestral homes
  • Multiple owners (siblings) with different opinions
  • Cultural pressure to preserve
  • Practical needs vs. sentiment

Regulatory Environment:

  • Demolition approvals (easier in some areas)
  • Renovation restrictions (heritage areas)
  • NOC requirements
  • Building codes (new construction must comply)

Market Dynamics:

  • Newly built = higher resale value
  • Renovated = decent value but ceiling
  • Location matters more than structure age
  • Buyer preferences (most want new/modern)

COST COMPARISON: THE NUMBERS

Let’s start with what everyone wants to know: What does each actually cost?

Scenario: 10 Marla House, Lahore

Existing structure: 30-year-old house, structurally sound but outdated


OPTION 1: COMPLETE RENOVATION

Renovation vs. New Construction

Scope: Gut renovation, keeping structure, updating everything

What’s Included:

  • Demolition of internal walls (selective)
  • New electrical wiring (complete)
  • New plumbing (complete)
  • New flooring (throughout)
  • New kitchen (complete)
  • New bathrooms (3, complete)
  • New doors & windows (all)
  • Paint (internal & external)
  • New fixtures & fittings
  • Structural repairs (as needed)

What’s NOT Included:

  • Foundation (existing)
  • Main walls (existing, repaired if needed)
  • Main structure (existing)

COST BREAKDOWN:

ItemCost (PKR)
Demolition (internal)150,000
Structural repairs300,000
Electrical (complete rewiring)450,000
Plumbing (complete new)400,000
Flooring (2,250 sq ft)675,000
Doors & Windows550,000
Kitchen400,000
Bathrooms (3)450,000
Paint (internal & external)350,000
Ceiling work/false ceiling280,000
Grills & Gates200,000
HVAC updates150,000
Miscellaneous300,000
Architect/Designer fees200,000
TOTAL RENOVATION4,855,000
Per Sq Ft: PKR 2,158
Timeline: 6-10 months

OPTION 2: DEMOLISH & NEW CONSTRUCTION

Renovation vs new construction Pakistan budget comparison guide

Scope: Demolish existing, build new from foundation

What’s Included:

  • Demolition (complete)
  • Foundation (new)
  • Structure (complete)
  • All finishing (as per standard)
  • Everything from scratch

COST BREAKDOWN:

ItemCost (PKR)
Demolition (complete)250,000
Grey Structure3,600,000
Finishing4,000,000
Architect fees250,000
Approvals/NOC150,000
Utility connections (new)150,000
TOTAL NEW CONSTRUCTION8,400,000
Per Sq Ft: PKR 3,733
Timeline: 12-16 months

COST COMPARISON SUMMARY:

AspectRenovationNew ConstructionDifference
Total CostPKR 4,855,000PKR 8,400,000PKR 3,545,000 (73% more)
Per Sq FtPKR 2,158PKR 3,733PKR 1,575 (73% more)
Timeline6-10 months12-16 months2-6 months longer
You GetUpdated old structureBrand new structureN/A
At First Glance: Renovation seems clearly cheaper (PKR 35 lakhs less!)
But wait… There’s more to consider.

HIDDEN COSTS: THE SURPRISE EXPENSES

Renovation Hidden Costs (Often Discovered Mid-Project):

1. Structural Issues:

  • Discovery: Walls weaker than thought
  • Cost: PKR 200,000 – 800,000 extra
  • Common in: Houses 30+ years old

2. Foundation Problems:

  • Discovery: Cracks, settling, water damage
  • Cost: PKR 300,000 – 1,500,000 to fix
  • Risk: Foundation issues = entire renovation cost can double

3. Hidden Electrical/Plumbing:

  • Discovery: Wiring buried in walls, pipes in slabs
  • Cost: PKR 200,000 – 500,000 extra to reroute
  • Common: Older homes with no plans available

4. Termite Damage:

  • Discovery: Wooden beams, joists compromised
  • Cost: PKR 150,000 – 600,000 repairs + treatment
  • Common: Very common in Karachi, Lahore

5. Asbestos/Hazardous Materials:

  • Discovery: Old insulation, roofing
  • Cost: PKR 100,000 – 400,000 for safe removal
  • Requirement: Must remove (health hazard)

6. Load-Bearing Wall Issues:

  • Discovery: Wall you wanted to remove is load-bearing
  • Cost: PKR 300,000 – 1,000,000 for structural solutions
  • Alternative: Can’t remove = design compromised

7. Ceiling Height Limitations:

  • Problem: Can’t change, stuck with 8-9 feet
  • Impact: Modern standards are 10-12 feet
  • Cost of Compromise: Feeling of cramped space, lower resale

8. Layout Constraints:

  • Problem: Can’t move plumbing easily, bathrooms stay where they are
  • Cost to Change: PKR 200,000 – 600,000 if you insist
  • Result: Stuck with suboptimal layout

9. Code Compliance:

  • Discovery: Old structure doesn’t meet current codes
  • Cost: PKR 200,000 – 800,000 to bring up to code
  • Required: For legal occupancy, resale

10. Unforeseen Contingencies:

  • Reality: Renovation ALWAYS has surprises
  • Standard: Add 20-30% contingency to budget
  • On PKR 4,855,000: Additional PKR 970,000 – 1,456,500

REALISTIC RENOVATION COST:

  • Quoted: PKR 4,855,000
  • With typical issues: PKR 6,000,000 – 7,500,000
  • Per Sq Ft: PKR 2,667 – 3,333
Now the gap narrows significantly!

New Construction Hidden Costs:

New construction from scratch Pakistan building process costs

Less Surprises (You’re Starting Fresh), But:

1. Site Preparation:

  • Unexpected: Difficult soil, rock
  • Cost: PKR 100,000 – 400,000 extra
  • Note: Rare, but possible

2. Material Price Increases:

  • Reality: Construction takes 12+ months, prices change
  • Cost: 10-15% inflation
  • On PKR 8,400,000: PKR 840,000 – 1,260,000

3. Design Changes Mid-Construction:

  • Common: “Can we move this wall?”
  • Cost: PKR 200,000 – 800,000 depending on changes
  • Avoidable: Finalize design before starting

4. Municipality Delays:

  • Issue: NOC delays, inspections
  • Cost: Time = contractor waiting = money
  • Impact: PKR 100,000 – 300,000
Contingency (New Construction): 10-15% (lower than renovation)

REALISTIC NEW CONSTRUCTION COST:

Structural assessment evaluation renovation vs rebuild Pakistan
  • Quoted: PKR 8,400,000
  • With contingencies: PKR 9,240,000 – 10,080,000
  • Per Sq Ft: PKR 4,107 – 4,480

REALISTIC COMPARISON (With Contingencies):
AspectRenovation (Realistic)New Construction (Realistic)Difference
Total CostPKR 6,000,000 – 7,500,000PKR 9,240,000 – 10,080,000PKR 2,000,000 – 3,500,000
Per Sq FtPKR 2,667 – 3,333PKR 4,107 – 4,480PKR 1,100 – 1,440

Gap narrows from PKR 35 lakhs to PKR 20-35 lakhs – still significant, but not as dramatic.

And we haven’t yet considered VALUE…


VALUE COMPARISON: WHAT DO YOU ACTUALLY GET?

Cost alone doesn’t tell the story. Let’s compare what you get for your money:

RENOVATION:

What You Get:

✅ Updated interiors

✅ New finishes

✅ Modern amenities

✅ Fixed immediate issues

✅ Faster timeline (usually)

✅ Preserve emotional/heritage value

What You DON’T Get:

❌ Optimal layout (limited by existing structure)

❌ Modern ceiling heights (stuck with old)

❌ Best orientation (can’t rotate house)

❌ New structure warranty (existing structure still old)

❌ Optimal window placement (structural constraints)

❌ Modern standards throughout

Hidden Costs (Long-term):

  • Structure still aging
  • May need significant work again in 10-15 years
  • Resale value limited (buyers prefer “new”)

Resale Value:

  • Renovated 30-year old house
  • Buyers know it’s still old structure
  • Value ceiling even with great renovation
  • Example: 10 Marla, DHA Lahore
    • Renovated (2026): PKR 3.5 – 4.2 crore
    • Newly built (2026): PKR 4.5 – 5.5 crore

NEW CONSTRUCTION:

Structural assessment evaluation renovation vs rebuild Pakistan

What You Get:

✅ Optimal layout (design from scratch)

✅ Modern ceiling heights (10-12 feet)

✅ Best orientation (if plot allows)

✅ New structure warranty (decades of life)

✅ Latest building codes (safety, efficiency)

✅ Modern standards (wiring, plumbing, etc.)

✅ Energy efficiency (proper insulation, design)

✅ Your dream design (not constrained)

What You DON’T Get:

❌ Heritage/character (new = no history)

❌ Fast timeline (takes longer)

Long-term Value:

  • Structure new, lasts 30-50+ years before major work
  • Higher resale value
  • Buyer preference (most want new)
  • Example: 10 Marla, DHA Lahore
    • Newly built (2026): PKR 4.5 – 5.5 crore
    • Resale value after 10 years: Holds better than renovated

THE BREAKEVEN ANALYSIS

Cost comparison chart renovation new construction Pakistan

When does renovation make financial sense?

Formula:

Renovation Makes Sense When:

(Renovation Cost + Lost Opportunity Cost) < (New Construction Cost – Demolition Proceeds)

Let’s Calculate:

Renovation Path:

  • Cost: PKR 6,500,000 (realistic)
  • Lost opportunity: Living elsewhere during renovation (6-10 months)
  • Rental cost: PKR 50,000/month × 8 months = PKR 400,000
  • Total: PKR 6,900,000

New Construction Path:

  • Cost: PKR 9,500,000 (realistic)
  • Demolition proceeds: Sell old materials (PKR 200,000)
  • Living elsewhere: PKR 50,000/month × 14 months = PKR 700,000
  • Total: PKR 10,000,000
Difference: PKR 3,100,000 (31 lakhs)

But Consider:

  • New construction resale value: +PKR 1,000,000 – 1,500,000 premium
  • New construction life: 20+ years longer before next major work
  • Renovation limitations: Can’t achieve optimal design
True Long-term Cost Difference: More like PKR 15-20 lakhs when factoring value and future costs

WHEN TO CHOOSE RENOVATION

Renovation success story Pakistan before after results

Renovation is the Right Choice When:

1. Structure is Genuinely Sound

Indicators:
  • House less than 30 years old
  • No visible cracks (major)
  • Foundation solid
  • No settling, shifting
  • Roof in good condition
  • Termite-free
  • Proper professional assessment confirms
Reality Check: Get structural engineer assessment (PKR 50,000 – 100,000). Worth every rupee.

2. Layout is Already Good

Meaning:
  • Room sizes appropriate
  • Don’t need to move major walls
  • Bathrooms/kitchen locations work
  • Flow makes sense
  • Ceiling heights acceptable (10 feet+)
If You’re Thinking: “I wish the master was here, and kitchen there, and bathrooms moved…” → New construction likely better

3. Renovation Cost < 60% of New Construction

Example:
  • New construction: PKR 9,500,000
  • 60% = PKR 5,700,000
  • If renovation truly costs PKR 5,500,000 → Makes sense
  • If renovation creeping toward PKR 7,000,000+ → Reconsider
Include Realistic Costs: Hidden issues, contingencies

4. Heritage/Emotional Value is High

Scenarios:
  • Ancestral home (grandfather built)
  • Historic property
  • Unique architectural features worth preserving
  • Family memories matter significantly
  • Cultural/social reasons
Note: This is valid, but be honest about financial trade-off. You’re choosing to pay premium for emotional value.

5. Regulatory Issues with New Construction

Situations:
  • Heritage area (can’t demolish)
  • Municipality delays expected (years)
  • Building code changes unfavorable
  • Neighbors’ objections to construction
  • Complicated approvals
Reality: Rare, but exists (especially heritage areas)

6. Timeline is Critical

Need:
  • Must be in house within 6-8 months
  • Can’t afford 12-18 month construction
  • Life situation requires quick solution
Renovation: 6-10 months typically New Construction: 12-18 months
But: Ensure renovation doesn’t stretch to 14 months due to issues!

7. Budget is Truly Constrained

Reality:
Caution: Ensure you’re not underfunding renovation (leads to problems)

RENOVATION SUCCESS EXAMPLE:

Client: Family, Gulberg Lahore, 20-year-old house

Situation:

  • Structure excellent (proper construction, well-maintained)
  • Layout perfect (no changes needed)
  • Ceiling heights good (10 feet)
  • Location prime (Gulberg III)
  • Emotional value (parents’ first home)

Renovation Scope:

  • Electrical and plumbing updates
  • New flooring, paint
  • Kitchen and bathroom modernization
  • Windows and doors replacement
  • Cosmetic improvements

Cost: PKR 4,200,000 Timeline: 7 months Result: Beautiful, modern home. Structure good for 30+ more years. Value: Appropriate expense, family thrilled.

Why It Worked:

  • Structure genuinely sound
  • Layout already optimal
  • No major structural work needed
  • Cost stayed controlled (no surprises)

WHEN TO CHOOSE NEW CONSTRUCTION

New Construction is the Right Choice When:

1. Structure is Compromised

Indicators:
  • House 40+ years old
  • Visible major cracks
  • Foundation issues (settling, water damage)
  • Roof structural problems
  • Termite damage throughout
  • Previous substandard construction
Reality: Fixing these = often 50-70% cost of new, and you still have old structure

2. Layout is Fundamentally Flawed

Examples:
  • Tiny kitchen (8×8 feet), can’t expand
  • Bathrooms in wrong locations
  • Bedrooms undersized
  • No logical flow
  • Ceiling heights too low (8-9 feet)
  • Want open plan, currently chopped up
Cost to Fix: Often requires removing load-bearing walls = expensive + structural complexity
Better: Design from scratch optimally

3. Renovation Cost > 65% of New Construction

Calculation:
  • New construction: PKR 9,500,000
  • 65% = PKR 6,175,000
  • If renovation realistically costs PKR 7,000,000+
  • Better: Spend extra PKR 2,500,000, get brand new
Why: For 30-40% more, you get 100% new vs. updated old

4. Current Design is Inefficient

Issues:
  • Poor orientation (west-facing rooms too hot)
  • No cross-ventilation
  • Wasted space (excessive hallways)
  • Awkward room shapes
  • Can’t fix without rebuilding
New Construction: Design correctly from start

5. You Want Modern Standards

Can’t Achieve with Renovation:
  • 11-12 foot ceilings
  • Open floor plan (if currently load-bearing walls)
  • Optimal window placement
  • Modern wiring/plumbing layout
  • Insulation throughout
  • Smart home infrastructure
New Construction: All possible

6. Long-term Investment Horizon

Planning:
  • Live here 20+ years
  • Retire here
  • Pass to children
  • Long-term family home
Logic: New construction = 50+ year structure. Renovated old = maybe 20 years before next major work.
Math: Over 30 years, new construction cheaper (no second major renovation)

7. Resale Value Matters

Market Reality:
  • Buyers prefer new construction
  • Pay premium (10-25%)
  • Easier to sell
  • Better financing for buyers
If Planning to Sell Eventually: New construction recovers cost better

8. Structural Warranty Matters

New Construction:
  • Structural warranty (varies, but protection)
  • Know exactly what you have
  • Built to current codes
Renovation:
  • Old structure = unknown issues
  • No warranty on structure
  • Uncertainty
Peace of Mind: New construction wins

NEW CONSTRUCTION SUCCESS EXAMPLE:

Client: Couple, DHA Karachi, 35-year-old inherited house

Situation:

  • Structure showing age (cracks, settling)
  • Layout terrible (small rooms, bad flow)
  • Ceiling heights 9 feet (felt cramped)
  • West-facing rooms unbearably hot
  • Renovation quote: PKR 6,800,000
  • New construction quote: PKR 9,200,000
Decision: Build new (difference PKR 2,400,000)

Outcome:

  • Perfect layout (designed from scratch)
  • 11-foot ceilings (spacious feel)
  • Proper orientation (bedrooms north/east)
  • Modern amenities throughout
  • Energy efficient (lower bills)
  • Resale value: PKR 12,000,000 higher than if renovated

Why It Worked:

  • Old structure genuinely poor
  • Layout couldn’t be fixed
  • Small extra cost, huge value difference
  • Long-term home (no more major work for 40 years)

THE HYBRID APPROACH

Sometimes the answer is: Both!

Selective Demolition + Partial New Construction:

Strategy:

  • Keep structurally sound portions
  • Demolish and rebuild compromised areas
  • Extend/add to existing
Example:
Original: 10 Marla, 1,500 sq ft old house

Approach:

  • Keep main structure (ground floor, sound)
  • Demolish old first floor (structurally weak)
  • Build new first floor
  • Add extension (500 sq ft)
  • Renovate ground floor

Cost:

  • Ground floor renovation: PKR 2,500,000
  • First floor demolition + new: PKR 3,500,000
  • Extension: PKR 1,750,000
  • Total: PKR 7,750,000

Result:

  • 2,000 sq ft house
  • Mix of renovated + new
  • Cost less than full demolition + rebuild
  • Better than pure renovation

When This Works:

  • Part of structure good, part bad
  • Want to expand
  • Staged budget (do in phases)

DECISION-MAKING FRAMEWORK

Use this systematic approach:

STEP 1: PROFESSIONAL ASSESSMENT

Hire:
  • Structural engineer (PKR 50,000 – 100,000)
  • Architect (initial consultation, PKR 25,000 – 50,000)
They Evaluate:
  • Structural integrity
  • Foundation condition
  • Load-bearing walls
  • Roof condition
  • Hidden issues likelihood
Get Report: In writing, with recommendations

STEP 2: REALISTIC COST ESTIMATES

For Renovation:
  • Detailed contractor quotes (3+)
  • Add 25% contingency (hidden issues)
  • Include living elsewhere costs
  • Professional fees
For New Construction:
  • Detailed quotes
  • Add 15% contingency
  • Demolition costs
  • Living elsewhere costs (longer)
  • Approval/NOC costs
  • Professional fees
Compare Apples to Apples: Both with realistic numbers

STEP 3: LAYOUT & DESIGN ANALYSIS

Questions:
  • Current layout work? (honestly)
  • Changes needed major or minor?
  • Can ceiling heights be changed? (usually no in renovation)
  • Orientation fixable? (no in renovation)
  • Dream design achievable with renovation? (be honest)
If Answers Mostly “No”: New construction likely better

STEP 4: TIMELINE ASSESSMENT

Your Situation:
  • How urgent?
  • Can you wait 14-16 months?
  • Living elsewhere feasible?
Reality:
  • Renovation: 6-10 months (if goes well)
  • New: 12-16 months (typically)

STEP 5: VALUE CALCULATION

Consider:
  • Resale value difference
  • Long-term maintenance costs
  • Years before next major work
  • Your satisfaction (living with compromises?)
Don’t Just Pick Cheaper: Pick better value

STEP 6: EMOTIONAL FACTORS

Valid Considerations:
  • Heritage value
  • Family memories
  • Architectural uniqueness
  • Neighborhood character
But: Be honest about financial premium you’re paying for emotion

STEP 7: THE DECISION MATRIX

Score Each Factor (1-10):
FactorRenovationNew ConstructionWeight
Structural Soundness____25%
Layout Suitability____20%
Cost (realistic)____20%
Timeline Fit____10%
Long-term Value____15%
Emotional Value____10%
Weighted Total: ___
Higher Score = Better Choice

REGIONAL CONSIDERATIONS

Lahore:

Renovation Pros:

  • Many well-built old homes (good construction)
  • DHA, Gulberg, Model Town have quality old structures
  • Heritage value in old areas

New Construction Pros:

  • Approvals relatively smooth
  • Good contractor availability
  • Modern standards improving
Typical Split: 60% renovation, 40% new construction

Karachi:

Renovation Challenges:

  • Coastal humidity = more damage
  • Termites very common
  • Old construction often compromised

New Construction Advantages:

  • Can design for humidity
  • Proper waterproofing from start
  • Modern materials resist environment
Typical Split: 40% renovation, 60% new construction

Islamabad:

New Construction Advantages:

  • Planned city, modern standards
  • Good quality contractors
  • Efficient approvals (CDA)

Renovation:

  • Fewer old homes (newer city)
  • When done, usually straightforward
Typical Split: 30% renovation, 70% new construction

FINANCIAL PLANNING

Funding Renovation:

Options:

  • Savings (ideal)
  • Home equity loan (if you own)
  • Personal loan (expensive interest)
  • Family loan (if possible)
Banks: Less willing to finance renovation vs. new construction
Budget: Have 30% more than quote (contingencies)

Funding New Construction:

Options:

  • Construction finance (banks offer)
  • Plot as collateral
  • Staged payments
  • Mix: Part savings, part loan
Banks: More willing (new asset as collateral)
Budget: Have 20% more than quote (contingencies)

COMMON MISTAKES

Renovation Mistakes:

Underbudgeting: Not accounting for hidden issues

Piecemeal approach: Doing bit by bit (costs more)

Ignoring https://dilaawarinteriors.com/our-services/construction-services/structure: Cosmetic fixes, ignoring foundation

Cheap materials: Saving money upfront, paying later

No professional assessment: Going on gut feeling


New Construction Mistakes:

Unnecessary demolition: Structure was actually fine

Overspending: Building too luxurious for area

Design creep: Constantly changing plans (cost+time)

Ignoring resale: Building very custom (hard to sell)


REAL CLIENT SCENARIOS

SCENARIO 1: The Right Renovation

Property: 25-year-old house, DHA Lahore, 10 Marla

Structure: Excellent (proper construction, maintained)

Layout: Good (worked for family)

Issue: Outdated finishes, old systems

Decision: Renovate Cost: PKR 4,800,000

Duration: 8 months

Outcome: Excellent. Modern home, structural integrity confirmed. Family saved PKR 4,000,000 vs. new construction.


SCENARIO 2: The Right New Construction

Property: 40-year-old house, Gulshan Karachi, 10 Marla Structure: Compromised (cracks, termites, settling)

Layout: Poor (small rooms, bad flow)

Ceiling: 8.5 feet (felt cramped)

Renovation Quote: PKR 7,200,000 (with all fixes)

New Construction Quote: PKR 9,800,000

Decision: New construction

Outcome: Perfect. Modern home, no structural worries, better layout, 11-foot ceilings, energy-efficient. Family thrilled. Extra PKR 2,600,000 well spent.


SCENARIO 3: The Wrong Renovation (Lesson)

Property: 35-year-old house, Islamabad, 10 Marla Initial Quote: PKR 5,200,000 (renovation) Actual Cost: PKR 8,900,000

Problems Discovered:

  • Foundation issues: PKR 1,200,000
  • Termite damage: PKR 800,000
  • Electrical completely redone: PKR 600,000
  • Plumbing nightmares: PKR 500,000
  • Other surprises: PKR 600,000
Outcome: Spent almost as much as new construction. Still have old structure (with concerns). Family regrets not building new.
Lesson: Professional assessment critical. Hidden issues killed renovation economics.

SCENARIO 4: The Hybrid Success

Property: 30-year-old house, Lahore, 1 Kanal Structure: Ground floor good, first floor weak Decision: Keep ground, demolish and rebuild first floor, add extension

Cost:

  • Ground floor renovation: PKR 3,500,000
  • First floor new construction: PKR 4,500,000
  • Extension (500 sq ft): PKR 1,750,000
  • Total: PKR 9,750,000
Vs. Full New: Would have been PKR 13,000,000 Savings: PKR 3,250,000
Outcome: Best of both. Preserved good parts, replaced bad, expanded. Cost-effective.

FREQUENTLY ASKED QUESTIONS

Is renovation always cheaper than building new?

No. Realistic renovation costs (with hidden issues) are often 60-80% of new construction cost, not 50%. And you get less (still old structure, layout constraints). Sometimes renovation costs MORE than new if significant structural issues are discovered mid-project.

How can I know if my structure is sound enough to renovate?

Hire a structural engineer for professional assessment (PKR 50,000-100,000). They’ll evaluate foundation, walls, roof, identify issues. Worth every rupee – prevents expensive mistakes. Don’t rely on contractor opinion (they have incentive to get project).

What’s a realistic renovation budget for a 10 Marla house in Pakistan?

Cosmetic renovation (flooring, paint, kitchen, bathrooms): PKR 3,000,000-4,500,000. Comprehensive renovation (electrical, plumbing, structural repairs, all finishes): PKR 5,000,000-8,000,000. With major structural issues: PKR 7,000,000-10,000,000. Always add 25% contingency for surprises.

When does renovation make more financial sense?

When: (1) Structure genuinely sound (<30 years, well-built), (2) Layout already good (no major changes needed), (3) Renovation cost <60% of new construction, (4) No major hidden issues (professional assessment confirms). If all four true, renovation makes sense.

Can I live in the house during renovation?

Partial renovation: Yes, but very uncomfortable (dust, noise, no privacy, disruption). Full renovation: Not recommended. Plan for living elsewhere 6-10 months. New construction: Definitely not (no house!), plan for 12-16 months elsewhere.

How long does renovation vs. new construction take?

Renovation: 6-10 months typically (if smooth). New construction: 12-16 months typically. However, renovation with unexpected issues can stretch to 14+ months. New construction timeline more predictable. Both depend on scope, contractor efficiency, approvals.

What about resale value – renovation or new construction?

New construction has higher resale value (typically 10-25% more than renovated). Buyers prefer new, financing easier, perceived less risk. Renovated homes have value ceiling – even excellent renovation can’t command new construction prices. If resale likely within 10 years, new construction better investment.

Should I renovate my inherited old house or demolish and build new?

Depends on structure quality and your emotional attachment. Get professional assessment first. If structure compromised (40+ years, visible issues, poor original construction), likely better to build new. If sound structure (<30 years, quality construction, good layout) and emotional value high, renovation may be right. Don’t let only emotion decide – financial impact is huge.


YOUR DECISION CHECKLIST

Before Deciding, Complete This:

Professional structural assessment (engineer report)

Realistic renovation quote (detailed, from 3+ contractors)

New construction quote (detailed, from 3+ contractors)

Add contingencies (25% renovation, 15% new construction)

Layout analysis (current works? changes needed?)

Timeline assessment (can you wait? live elsewhere?)

Long-term value calculation (resale, maintenance)

Emotional factors (heritage value worth premium?)

Financial planning (funding, budget reality)

Decision matrix (scoring all factors)


FINAL THOUGHTS

The renovation vs. new construction decision isn’t just financial – it’s about value, lifestyle, timeline, and peace of mind.

Key Takeaways:

Don’t assume renovation is cheaper – Hidden costs often make it 60-80% of new construction, not 50%

Professional assessment is essential – Worth PKR 50,000-100,000 to avoid PKR 1,000,000+ mistakes

Consider what you get, not just cost – New construction offers more (optimal design, modern standards, longer life)

Be realistic about timelines – Both take longer than contractors initially promise

Factor long-term value – Resale value, maintenance costs, years before next major work

Emotional value is valid – But be honest about the financial premium you’re paying

Sometimes the answer is “hybrid” – Keep good parts, rebuild bad parts, best of both

The Right Decision for You:

  • Depends on YOUR specific structure, situation, priorities, budget
  • Not a one-size-fits-all answer
  • Take time to evaluate thoroughly
  • Get professional input
  • Make informed decision, not rushed one

You’ll live with this choice for 20+ years. Invest the time to get it right.


NEED EXPERT GUIDANCE?

At Dilaawar Interiors, we help Pakistani families make this critical decision with confidence.

Our Renovation vs. New Construction Services:

Decision Consultation (PKR 15,000)

  • Analyze your specific property
  • Professional structural assessment coordination
  • Cost-benefit analysis
  • Realistic quotes for both options
  • Clear recommendation

Complete Renovation Management

  • Design + execution
  • Contractor vetting
  • Quality control
  • Timeline management
  • Budget control
  • Fee: 8-12% of renovation cost

New Construction Management

  • Architecture + structural design
  • Construction management
  • Quality supervision
  • Timeline coordination
  • Fee: 5-8% of construction cost

Hybrid Approach Design

  • Selective demolition planning
  • Mixed renovation + new construction
  • Cost optimization
  • Seamless integration

Contact us today:

📞 Call: +923111147157

💬 WhatsApp: +923111147157

📧 Email: info@dilaawarinteriors.com

🌐 Website: www.dilaawarinteriors.com

📍 Visit: Lahore, Pakistan.

👉 Get Your Renovation vs. New Construction Analysis


Stop guessing. Get expert analysis and make the right decision for your property and budget!

Share this guide with anyone facing this decision! Questions about your specific situation? Comment below! 💬