Construction Boom: Over a Quarter of New Homes are Prefabricated

Prefabricated homes are gaining significant popularity among homebuyers in Germany, with more than one in four new houses now classified as such. According to the Federal Association of German Prefabricated Construction (BDF), the share of prefabricated houses among newly approved single-family and two-family homes reached 26.1% in 2024, as reported from data by the Federal Statistical Office. This marks the first time this figure has exceeded a quarter, up from 24.5% in 2023 and a mere 16.2% in 2014.

Despite this growth in percentage, the absolute number of new prefabricated homes saw a decline. In 2023, Germany recorded 13,394 new approvals for prefabricated houses, but this number dropped to 11,543 in 2024. However, the decrease in the prefabricated segment was less severe compared to other construction methods, allowing this sector to expand its market share.

The real estate market is currently facing challenges, including high costs and a reluctance from households to invest in property, primarily due to the tense economic climate. The BDF is advocating for a federal program aimed at revitalizing the construction sector. This initiative would focus on reducing regulatory burdens, expediting processes, and enhancing support for all citizens. The association's president emphasized the need for average families to regain the opportunity to build home ownership.

As the housing market adapts to these conditions, the advantages of prefabricated homes--such as lower costs and quicker construction times--are becoming increasingly appealing to prospective homeowners. The ongoing shift in preferences may signify a long-term trend towards more efficient building practices in response to economic pressures.