Contrary to expectations, the crisis caused by the pandemic in 2020 had no negative impact on the prefabricated house market in Germany. A total of 23,006 housing units were built in Germany last year using industrial prefabricated construction methods, 4.9% more than in the year before. Forecasts for the next few years are also looking positive, as shown in a new study by Interconnection Consulting.

The growing importance of moving from the city to the countryside is having a positive effect on the development of the prefabricated house market. The prefabricated house segment is growing more dynamically than the general new construction of detached and semi-detached houses. The prefabricated house rate, which has been growing steadily for years, rose from 20.8% to 21.5% last year. “The Corona crisis did not hinder market development in 2020,” says Daniel Kollar. Above all, the significantly higher market security, the prices already fixed at the beginning of the project, the fixed deadline and the minimised risk of delays ensure large growth rates in the prefabricated construction sector. The east of the republic shows the strongest growth dynamics.

Turnkey Will Soon Overtake Floor Covering Solutions

Although most houses are still sold as floor covered buildings (market share 39.1%), there is a clear trend towards turnkey projects. As early as 2022, turnkey houses will represent the largest market segment, the Interconnection study predicts. In the long term, the segment of shell-finished houses will grow the least, although there are still manufacturers who cater exclusively to this segment, such as Massa or ProHaus. In terms of construction type, timber frame construction continues to gain in importance. This is explained by the increasing focus on the sustainability factor. “Sustainable building is becoming more and more important for builders and wood supports this trend as a renewable raw material” says Kollar.

Room For Competition

The German prefabricated house market is growing so strongly that competition is not so much between individual manufacturers, but rather with other construction methods. Deutsche Fertighaus Holding as a group of Okal, Massa and Allkauf continues to dominate the market and was able to further increase its market share in terms of volume in 2020 with stable growth. Overall, the market concentration of the top ten companies last year was 42.4%, a little below last year’s figure.

10/02/2021

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.