My garage is made of block. I would like to use the garage as living space.

What do I need to do to convert this garage into living space. What should I put over the block ,? drywall? The ceiling has the older type drywall, it is flexible but light. I would like to remove that but what would I put there in its place? This is a split level home and there are bedrooms above the garage, so that means the heating pipes are under this ceiling. Would a drop ceiling work ? Thanks