Modular Construction: Is This the Answer to Portugal's Housing Crisis?
In response to Portugal's ongoing housing crisis, the nation's Socialist Party (PS) has formally presented a package of measures to the government, which includes a significant emphasis on industrializing the construction sector. A key pillar of this proposal is the adoption of modular construction, a modern building technique being touted as a potential solution to accelerate the delivery of new homes. The proposal, championed by PS Secretary-General José Luís Carneiro, highlights the method's potential for speed and cost efficiency as crucial advantages in the current market.
The core objective of the party's initiative is to address the severe housing shortage that has led to soaring property prices and rents, particularly in major urban centers. Modular construction, where large components of a building are manufactured off-site in a factory and then assembled on location, is seen as a way to dramatically shorten project timelines compared to traditional on-site building methods. This speed is considered a critical factor in being able to respond more rapidly to the urgent demand for housing.
However, industry experts caution that while the long-term benefits are clear, immediate cost savings may not be realized. In a recent discussion on the 'Chave na Mão' podcast, architect Miguel Ribeiro de Sousa, the founder of Modular System, provided a nuanced perspective. He stated that while modular construction is often associated with lower costs, this is not yet the reality in Portugal. 'The construction system is not yet cheaper because it has not been adopted on a large scale in Portugal,' Sousa explained. He pointed out that the economies of scale necessary to reduce production costs have not been achieved due to the industry's nascent stage in the country.
The debate now centers on how to bridge this gap. For modular construction to become a viable, large-scale solution, significant investment in factory infrastructure and a consistent volume of projects are required. The PS proposal suggests that government support could play a crucial role in fostering this new industrial capacity. This could involve public-private partnerships for large housing projects or incentives for private developers who choose to utilize modular techniques. A fictional developer, Carlos Andrade, commented, 'The speed is the main attraction for us. If we can deliver a residential project in 12 months instead of 24, that significantly de-risks the investment. If government incentives can help offset the initial learning curve and setup costs, we would be very interested in exploring this for our next Lisbon development.'
The discussion represents a potential turning point for the Portuguese construction industry, shifting from traditional practices towards a more technologically advanced, industrialized model. The successful implementation of modular construction could be a key factor in alleviating the housing supply constraints that have defined the market for the past several years. Monitor new development opportunities at realestate-lisbon.com.
