The answer is not simple, but with the experience we have, we can clearly state that it is not. The construction of a prefabricated house is not cheaper than one built with conventional or traditional methods. However, there are many factors that make industrialized or prefabricated construction the best option.

What economic benefits does prefabrication offer then?

Financial benefits: Controlling the execution timelines and the absence of delays reduce loan costs. By knowing exactly when the work will be finished, the interest on self-promotion mortgages or bridge loans is minimized.
Risks on site: Although not directly an economic disadvantage, prefabrication reduces safety and health risks, as well as third-party damage risks on worksites. Fewer accidents mean fewer interruptions and possible penalties or legal costs.
Subsequent repairs: In the long run, the high quality of prefabrication and industrialization eliminates the need for post-repair tasks that are so common in traditional construction. The components are manufactured in a controlled environment, minimizing errors and hidden defects.
Low energy consumption of the building: In the medium term, the investment can be recovered because prefabricated homes are usually much more energy-efficient. The joints are reduced, they are much more airtight, and air infiltration into the building is much better controlled. In addition, they usually incorporate superior thermal insulation levels, resulting in considerable savings in climate control bills throughout the home’s lifetime.

Costs that increase the price of a prefabricated house

If the direct savings are not the determining factor, why is the initial cost of a prefabricated house not lower, or even higher, than that of a traditional construction? Several factors contribute to this:

Optimized engineering and design: Although mass-produced, the initial development of prefabricated modules requires a significant investment in engineering and design. Each piece must fit perfectly and be capable of being transported and assembled with millimetric precision, which involves more advanced processes and technology than on-site construction.
Inherent quality and industrial processes: Prefabrication factories usually use higher-quality materials and exhaustive control processes. The workforce, although efficient, is highly specialized. This standardization and superior quality of the final product, while a long-term benefit, is reflected in the base price of the modules.
Specialized transportation and on-site assembly: Moving large, heavy modules from the factory to the site is not a simple or inexpensive task. It requires special transport, specific circulation permits, and, in many cases, the use of heavy-duty cranes and highly qualified assembly teams to position each module with precision. These are additional costs that do not exist in traditional construction.
Need for precise foundation: Although the house arrives in modules, it needs a solid base and, above all, a perfectly level one. The foundation for a prefabricated house must be extremely precise so that the modules fit seamlessly, which may require more demanding and, therefore, more expensive land preparation and foundation (slab, sanitary flooring, basement).

The real cost: Beyond the price per square meter

When comparing the cost of a house, it’s crucial to go beyond the often advertised “price per square meter,” especially in the case of prefabricated homes. The final cost of living in your new home involves many more components:

Acquisition and land preparation: Whether prefabricated or traditional, the price of the plot is often the largest expenditure. In addition, there are land preparation costs: earthworks, clearing, leveling, and, if necessary, soil stabilization.
Connections and services: Connecting the house to water, electricity, sewage, gas, and telecommunications networks involves excavations, pipe and cable installations, and payment of fees to utility companies. These works are independent of the type of construction.
Licenses, permits, and technical fees: Bureaucracy is an unavoidable cost for any construction. Municipal work permits must be obtained, taxes on construction (ICIO) must be paid, public space occupation fees (if applicable) must be settled, and, most importantly, the fees of the professionals managing the project and construction: architects, surveyors, and, in some cases, specialized engineers.
Urbanization and exteriors: A house is not complete without its surroundings. The costs of landscaping, building access points, fencing, retaining walls, garages, or even a pool are elements that add a significant portion to the total budget and are not included in the price of the prefabricated “module” or the structure of a traditional home.
VAT and other taxes: It is crucial to consider the Value Added Tax (VAT) that applies to the purchase of the house, materials, and labor. In self-promotion of new homes, it is usually 10%, but it is vital to confirm the specific tax situation of each component, especially in prefabricated houses, where the fiscal classification may have nuances depending on the type of installation and whether it is considered movable or immovable property.

At Kaitek Arquitectura, we can carry out a cost study for your prefabricated house construction

As we’ve seen, the decision to build a prefabricated or traditional house isn’t reduced to a simple “cheaper” figure. While industrialized construction offers undeniable advantages in timelines, quality control, and long-term energy efficiency, the initial investment cost can be similar or even higher than that of a traditional construction of identical quality, once all the factors are considered.

At Kaitek Arquitectura, architects in Barcelona, we understand the complexity of this decision. That’s why we offer a detailed, personalized cost study for your construction project, whether prefabricated or traditional, here in Barcelona and its surroundings. We will analyze your plot, your needs, and your desires, breaking down each item so that you have a clear and transparent view of the total investment. Our goal is for you to make the best decision with all the necessary information, optimizing your budget and ensuring the quality and efficiency you’re looking for in your future home. Contact us without obligation to start shaping your dream.