Germany is actively exploring modular and serial construction methods as a potential solution to address housing shortages and escalating building costs. Federal Minister for Digitalization and Building, Verena Hubertz, highlighted the significant potential of these approaches to accelerate construction timelines and reduce expenses. She dismissed previous perceptions of serial construction as monotonous or low-quality, asserting that equally attractive and well-designed buildings and neighborhoods can be created using these techniques.
The industry echoes this optimism. Mathias Schäfer, President of the German Federal Association for Prefabricated Buildings (BDF), described modular and serial construction as a pathway out of the current building crisis. He noted substantial untapped potential, extending beyond residential construction to crucial public sector projects like schools, healthcare facilities and even defense infrastructure. Schäfer envisions these projects being realized nationwide with consistent quality and predictable costs through the adoption of serial building methods.
However, industry leaders are also calling for regulatory reform to fully unlock the potential of these methods. Schäfer argued that differing building codes across German states and existing public procurement laws currently hinder large-scale implementation. He proposed concept procurement – consolidating planning and construction under a single general contractor – as a potential solution.
Furthermore, the BDF is advocating for financial incentives to stimulate both demand and supply. Proposals include reducing land transfer tax for owner-occupied homes, improving depreciation options for private builders and exploring “supply-side” funding specifically designed to enhance productivity and reduce construction costs within the industry. This includes potential tax breaks for investments in automation and the digital integration of planning, manufacturing and construction processes.
