Prefabricated houses – advantages and disadvantages

Choose a style, have it assembled, move in – prefabricated houses made from pre-assembled building elements are in high demand. But is such a house actually a more cost-effective and faster alternative to a traditionally built house?

According to the Federal Statistical Office, in 2022 almost one in four newly built single-family homes was a modular building. However, prices in this sought-after segment have also risen due to factors such as increased interest rates and the shortage of skilled workers.

What costs will I incur when building a prefabricated house?

In 2023, the cost of prefabricated houses in the lower price segment was around €2,000 per square meter, while in the mid-price range it was approximately €2,500. For higher-end models, an additional €500 had to be budgeted. Depending on the features and specifications, however, costs could rise to between €4,500 and €6,000 per square meter. These prices only cover the construction of the house itself – additional expenses for the land, foundation slab, landscaping, and ancillary construction costs must be factored in separately.

The costs depend on various factors:

• Basement or foundation slab: Most prefabricated home providers quote prices "from top of foundation slab," which means "from the top of the foundation slab" or "from the top of the basement." The foundation slab is included in the standard price, but a basement incurs additional costs of approximately €35,000 to €70,000.
• Construction preparation costs: These vary depending on the development of the property and the necessary earthworks.
• Roof shape: Various roof shapes are possible, with the classic gable roof being the most cost-effective option.
• House size and shape: A rectangular house is easier to build than an L-shaped house, just as a two-story house is often more complex than a bungalow.
• The supplier: There are also differences among prefabricated house manufacturers. While some suppliers offer standardized houses, there are premium suppliers who, for example, build custom-made eco-houses.

Advantages of a prefabricated house

Besides a shorter and more predictable construction time, a key advantage of a prefabricated house is that the construction costs can be precisely calculated. Once you have decided on the construction method, level of completion, size, and features, you will know the exact costs.

Whether a modular home is actually cheaper than a traditional brick-and-mortar house or buying an existing property depends on many factors. It's best to consult an experienced local real estate agent to better compare the different options.

Are you looking to buy a property and wondering what suits you and your budget? Contact us! We'd be happy to advise you.

Notice

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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