The prefabricated house - an affordable alternative?

Due to the effects of the recent crises, many prospective buyers are looking for affordable 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 houses is on the rise. The Federal Statistical Office (Destatis) reports that in 2022, almost one in four newly built single-family homes was a prefabricated house. However, prices have also risen here due to increased inflation and interest rates as well as a shortage of materials and skilled workers.

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 meter. In the mid-range and high-end segments, prefabricated houses were available for around 2,500 and 3,000 euros per square meter respectively.

However, depending on the fittings and individualization, 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 to this.

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: Expenditure on building preparation varies depending on the extent of the earthworks and the degree of development of the property.
• 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 meters of living space is less complex than a two-storey house with more than 200 square meters.
• 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 standardized houses with basic fittings. It is worth paying attention to features that characterize a high-quality prefabricated house provider.

Conclusion

A major advantage of a prefabricated house, apart from the shorter and plannable construction time, is that the construction costs are precisely predictable. Once you have made a decision regarding the construction method, the level of finish, the size and the fittings, you also know how much you will have to spend on the house.

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

Are you looking for support when buying real estate? Please contact 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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