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Prefabricated construction in Germany has been growing over the past few years with the penetration of prefab around 30% in the country as compared to only 3% in the US. The popularity of one and two family prefabricated houses in Germany is increasing. Of the 102,000 new one- and two-family houses approved in Germany in 2019, around 20.6% (or 21,000) of the houses were prefabricated .
Over the past decade, the share of building permits for prefabricated houses in Germany has augmented to around 21% from 15%. ??Also, multi-family prefabricated houses have recorded YoY growth of 21.2% in terms of number of permits in 2019. Growth though low has also been seen ??in prefabricated apartment buildings which recorded 1.6% YoY growth in the number of permits.
In 2019, Baden-Wurttemberg and Hesse states reported high prefabrication rates of 36.9 and 30.6%, respectively, as compared to federal states. However, in absolute terms, in 2019, Bavaria State held highest market share of 24.8%, with 5,644 newly approved prefabricated houses. While North Rhine-Westphalia held 14.4% share and Lower Saxony held only 8% share.
The official building permit numbers during January to July 2020 stood at 60,922 single and two-family houses were approved nationwide, of which 21.9% (or 13,370) were prefabricated, an increase of 9.6% as compared to Jan-Jul 2019 , which reflects increase in demand for such houses. In Germany, majority of prefabricated houses are manufactured and constructed by 49 industrial manufacturers of the Federal Association of German Prefabricated Buildings (BDF) and their employees. As per BDF estimates, prefabricated house manufacturers turnover is expected to increase by around 5% to over EUR3.2B in 2020.
Moreover, the demand for wooden prefabricated houses has been increasing and it holds a market share of 21.9% in one and two-family houses newly approved in Germany from January to September 2020. The prefabricated house manufacturers involved are investing around EUR15M euros in their latest lighthouse project in Kappel-Grafenhausen.
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