The prefabricated house – a favourable alternative?

Due to the effects of the recent crises, many prospective buyers are looking for favourable alternatives to buying or building a house. A prefabricated house can be one way of reducing costs. But what should you bear in mind?

The popularity of prefabricated homes is on the rise. The Federal Statistical Office (Destatis) reports that in 2022, almost one in four newly built detached houses was a prefabricated house. However, prices have also risen due to increased inflation and interest rates as well as a shortage of materials and skilled labour.

What does a prefabricated house cost?

In the lower price segment, the cost of a turnkey prefabricated house in 2023 was around 2,000 euros per square metre. In the mid-range and high-end segments, prefabricated houses were available for around 2,500 and 3,000 euros per square metre respectively.

However, depending on the fittings and individualisation, the costs could also amount to between 4,500 and 6,000 euros. These are only the costs for the construction of the property. In other words, ancillary building costs, land costs and the costs for the base plate and outdoor facilities were added.

The following factors influence the price

• Floor slab or basement: Many prefabricated house providers state the prices as “from OK”. This means “from the top edge of the floor slab” or “from the top edge of the basement”. A floor slab is included in the standard price, but if you choose a basement, you can expect additional costs of around 35,000 to 70,000 euros.
• Building preparation costs: The costs for building preparation vary depending on the extent of the earthworks and the degree of development of the plot.
• Choice of roof shape: Thanks to the modular system, buyers have a choice of different roof types. A classic pitched roof is a cost-effective option.
• House shape and size: An L-shaped house is more complex to build than a simple rectangular house, just as a single-storey bungalow with 100 square metres of living space is less complex than a two-storey house with more than 200 square metres.
• Choosing a prefabricated house supplier: Among prefabricated house manufacturers, there are both premium suppliers who build individual eco-houses to customer specifications and those who offer standardised houses with basic features. It is worth paying attention to features that characterise a high-quality prefabricated house provider.

Conclusion

In addition to the shortened and plannable construction time, a major advantage of a prefabricated house is that the construction costs are precisely predictable. Once you have made a decision regarding the construction method, finishing, size and fittings, you also know how much you will have to spend on the house.

However, whether it is cheaper than a solid construction house or buying an existing property depends on various factors. Seek advice from a local quality estate agent. They will help you compare different property prices.

Are you looking for support when buying a property? Get in touch with us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

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

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