Germany prefab housing market share rises to 26.7 percent

The German residential construction market is seeing a shift toward prefabricated housing. According to data from the Federal Statistical Office and the German Prefabricated Construction Association, prefabricated homes accounted for 26.7 percent of all newly approved single-family and two-family homes in the first half of the year, a slight increase from 26.2 percent in the previous year's period.

This growth was particularly strong in Baden-Württemberg, where prefabricated buildings represented 44.7 percent of permits, followed by Hessen at 33 percent. While Bavaria leads in absolute numbers of new prefabricated homes, the construction method is gaining popularity in major metropolitan areas such as Berlin, Cologne, Hannover, and Augsburg.

In the financial sector, Stefan Siebert, CEO of the building society LBS Süd, noted that while high construction costs, rising interest rates, and economic uncertainty present challenges, the desire for homeownership remains active. LBS Süd manages a balance sheet of 38 billion euros and serves 2.5 million customers, holding an aggregate building society savings sum of 165 billion euros to support future real estate investments.