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What Is a Reasonable Design Budget? – A Homeowner’s Guide

When beginning an interior design project, the biggest question is often: “What is a reasonable design budget?” Setting a clear budget helps balance creativity with practicality, prevents overspending, and ensures the design process moves smoothly. A reasonable budget depends on the size of your home, scope of work, materials, and location.


Why You Need a Defined Budget

  • Keeps spending under control
  • Helps prioritize key areas like kitchen and storage
  • Provides clarity for designers and contractors
  • Avoids midway design compromises
  • Ensures that the final outcome matches expectations

Factors That Influence a Reasonable Budget

  1. Home Size – 1BHK, 2BHK, 3BHK, or villa
  2. Scope of Design – Full home interiors vs single-room design
  3. Style Choice – Minimalist, modern, or luxury interiors
  4. Material Selection – Local vs imported finishes
  5. Furniture – Modular vs custom-built furniture
  6. Location – Delhi NCR, Gurgaon, and Noida projects cost more than Tier-2 cities

Average Design Budgets in India

Property TypeBasic InteriorsMid-Range InteriorsLuxury Interiors
1 BHK₹2 – ₹4 lakh₹5 – ₹8 lakh₹10 lakh+
2 BHK₹4 – ₹6 lakh₹8 – ₹12 lakh₹15 lakh+
3 BHK₹6 – ₹10 lakh₹12 – ₹18 lakh₹20 lakh+
Villas / Penthouses₹15 – ₹30 lakh₹30 – ₹50 lakh₹60 lakh+

Cost Per Square Foot Estimate

  • Budget-Friendly – ₹800 – ₹1,500/sq. ft.
  • Mid-Range – ₹1,500 – ₹2,500/sq. ft.
  • Luxury – ₹3,000 – ₹6,000+/sq. ft.

➡ Example: A 1,000 sq. ft. home in Noida may cost ₹8–12 lakh for a mid-range setup.


Realistic Budgets in Delhi NCR

  • Compact 1BHK – ₹3 – ₹5 lakh
  • 2BHK in Noida – ₹6 – ₹10 lakh
  • 3BHK in Gurgaon – ₹10 – ₹18 lakh
  • Luxury South Delhi Villa – ₹25 – ₹50 lakh+

How to Allocate a Reasonable Budget

  • Furniture & Storage – 40%
  • Finishes (flooring, paint, wall panels) – 25%
  • Lighting & Electricals – 20%
  • Décor & Accessories – 10%
  • Contingency Buffer – 5–10%

Tips for Sticking to a Budget

  • Decide priorities early—focus on functional spaces first.
  • Use modular kitchens and wardrobes for savings.
  • Combine premium items with affordable décor.
  • Compare multiple vendor quotes before finalizing.
  • Keep 10–15% extra as a safety buffer for price hikes.

FAQs – Reasonable Interior Design Budget

Is ₹5–7 lakh enough for a 2BHK?
Yes, for mid-range interiors with modular furniture and essential finishes.

Can a 3BHK be designed under ₹12 lakh?
Yes, if you keep finishes simple and stick to modular solutions.

Are luxury interiors worth the cost?
Yes. They add durability, comfort, and resale value to your property.

Do turnkey services provide budget clarity?
Yes. Turnkey packages give fixed costs and timelines.

Should I go room by room or full home?
Full home projects maintain design consistency and may reduce costs.


Conclusion – Setting a Reasonable Design Budget

A reasonable design budget depends on property size and lifestyle, but typically falls between ₹800 – ₹2,500 per sq. ft. for mid-range homes. In Delhi NCR, plan for ₹5–8 lakh for 2BHKs and ₹10–18 lakh for 3BHKs, while luxury projects easily cross ₹20 lakh.

The key is planning smart, balancing essentials with style, and ensuring flexibility for unexpected costs.