Prefab Lab

Evolution of the Prefab Market

In your view, which direction is the market heading, and which concept should we focus on in the coming years?

Without delving into specifics, the main products in the modular market are as follows:

Firstly, standardized modules—mini-homes, residential houses, and sometimes offices. A manufacturer or idea generator implements their concept, emphasizes quality marketing, establishes a network of representatives across regions, and sells the same product, adding and optimizing it year by year. Examples include compact homes like KODA, Tiny Villa, Nokken, and ÖÖD.

Secondly, mass production of modules based on the project documentation of a client, developer, or real estate developer. Here, it's straightforward: a factory receives project documentation for a residential building consisting of 100 apartments = 350 modules and adapts the necessary structural elements for its production. Examples include Skanska / BoKlok, which procure modules for residential buildings in the Baltic States and Poland.

From what I've observed in social media over the past few years, it seems that the growth of the modular industry is primarily driven by private clients. In other words, the main product is standardized compact homes.

At the same time, significant prospective projects that could efficiently utilize resources and quickly achieve profitability through modular construction still rely on traditional construction methods.

So, what's hindering developers from transitioning to modular construction?

Legislation, financing, design, lack of qualified professionals, unfamiliarity with the concept—what other factors could be at play?