Real estate: Construction boom in prefabricated houses – supplies of materials secured

Important raw materials are still in short supply – but more and more prefabricated wooden houses are being built in Germany. However, the industry association does not see production in danger.

The construction boom in Germany has given manufacturers of prefabricated wooden houses full order books.

In the first four months of this year, almost 9200 building permits for one and two-family houses in prefabricated construction were issued nationwide, reported the Federal Association of German Prefabricated Buildings (BDF), citing figures from the Federal Statistical Office. That is almost 1700 houses more than in the same period of the previous year and corresponds to an increase of 22.4 percent. In total, the building authorities approved almost 41,000 new one and two-family houses between January and April 2021.

Despite the currently tense situation on the Holzmark, the supply of the manufacturers with building materials is assured. The prices for wood and other building materials have risen sharply on the world market, partly because of the great demand from China and the USA. This should also be reflected in the prices for prefabricated houses. “The companies can certainly not fully absorb the enormous increases in material prices and will have to take them into account in their calculations,” said the prefabricated building association.

The proportion of prefabricated buildings coming from the factory in all single and two-family houses has been increasing for years. Last year, the prefabricated house industry achieved a market share of 22.2 percent, which, according to their estimates, could increase to 23 percent this year. The prefabricated house industry is currently working at full capacity, in some cases there are additional shifts in companies to cope with the high order backlog, the industry association said.

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