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Prefabricated housing market

Portrait of Kai-Stefan Schober
Senior Partner
Munich Office, Central Europe
+49 89 9230-8372
10 januari 2018

Industrially prefabricated houses with varying finishing and material types are increasingly in demand.

The market study by Roland Berger analyzes the prefabricated one and two family housing market in Central and Northern Europe, covering the countries Germany, Scandinavia, the UK, Austria, Switzerland and Poland, and is based on primary and secondary sources of information. The market volume of one and two family housing is expected to display solid growth of 2.0% p.a. from 2017 to 2022, driven by a strong anticipated GDP development, favorable financing conditions, and governmental regulations and subsidiaries. Among one and two family housing, the prefabricated housing segment is forecast to further gain in relevance by growing at 3.2% p.a. from 2017 to 2022 mainly due to an increasing demand for planning security and technology acceptance.

The prefabricated housing segment seems to be particularly well positioned to meet changing customer demand trends
The prefabricated housing segment seems to be particularly well positioned to meet changing customer demand trends

Within prefabricated one and two family housing, there is a trend towards turnkey solutions with convenience and security as key drivers. Turnkey solutions are the prevailing prefabricated finishing type, accounting for circa 50% of the market volume, and are projected to outgrow the prefabricated housing market in all focus regions.

The market value of prefabricated one and two family housing is expected to grow at circa 6% per year between 2017 and 2022 in Central and Northern Europe due to favorable pricing trends like shifts towards more expensive turnkey solutions and increasing wage levels. Turnkey solutions are forecast to outgrow the prefabricated housing market with circa 7% growth per year.

Yet new manufacturers in the prefabricated one to two family housing market may face several challenges. The main market entry barriers are related to technical capabilities, sales network with an attractive online channel, brand/track record and capital intensity.

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Study

Prefabricated housing market

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Industrially prefabricated houses with varying finishing and material types are increasingly in demand.

Published January 2018. Available in
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