Do you have to rush it? Landscaping is a big deal and can add a lot to resale. Why not check out Sunset Magazine (their website or design books) for ideas. You goals are not opposed; a pretty and low—maintainance yard is good for resale. But take your time and think this through. Don’t just pave it over or use fake grass. In fact, can you imagine life without a lawn? It’s possible. I haven’t had a lawn in >20 years. Sunset has plenty of article of people creating beautiful water-wise yards w/o grass. If you don’t want to take the time to research and plan all of this (and I could see why—-after finishing your construction project) consider hiring a landscape architect to at least come over and give you some ideas of what will grow well in your different micro—climates.

For resale, I would go most conventional, trying to keep it green. Not paving it if you don't have to. (We can't see the concrete so don't know what "breaking it up" means ... or "restoring to former glory.) Would not do anything expensive, like artificial turf. Would keep plain vanilla ... simple, attractive. Personally, I would rather have a plain patch of lawn than someone's version of their busy landscape dream. It looks like background is in place. Just clean up yard and plant the grass.

After construction, clean up and photo again. We might have better suggestions if we could really see what you're dealing with. For real estate appeal I'd go for simplicity and let new buyers do what they really want.

No fake grass.

What is the drainage situation like? Is it advisable to turn it into a planted area?

You already have such beautiful greenery. If you can redo the concrete to make it look beautiful instead of just a slab, go for it.