Prefab Homes Portugal: A Modern Solution to Traditional Housing

When it comes to trendy and convenient housing options like prefab homes, Portugal is seeing a growing interest. While traditional buildings are built on-site, prefab homes – short for prefabricated homes – are constructed in a factory environment and transported as complete homes from the construction site to the project site. 

Prefabricated houses, in many ways, are revitalizing the construction industry and shaping the future of buildings. Sometimes referred to as mobile homes, they can be built at a lower cost compared to traditional homes, can be built faster, are adaptable and customizable, and, as a general rule, can be carefully controlled. This has made their popularity increase on a global scale – and in Portugal, prefab houses are becoming an increasingly sought-after option for buyers. 

In this article, we’ll guide you through a brief history of prefabricated homes and their advantages before focusing on Portugal. We will also provide you with information on the environmental and sustainability benefits of opting for prefab homes in Portugal and some key considerations to bear in mind. 

History of Prefabricated Housing

While it may sound quite modern to build a home and then move it, the concept of prefab houses was first mentioned as far back as the twelfth century. In more modern terms, however, the concept has really come to fruition in the USA, where companies such as Sears Catalog Homes began offering mail-order homes from 1902 to 1910, with ongoing research taking place in the 1930s and 1960s. By 1958, approximately 10 percent of new houses in the USA were prefabricated. Fast forward to 2024, and a whopping 21.2 million Americans live in prefab and modular homes, representing around one out of every 10 new homes constructed in the US  each year.

This trend of buying prefab properties or modular houses has been gaining traction in Portugal, where affordability and a shorter construction time are major attractions. Additionally, the house still offers good living conditions and the ability, to a certain extent, to put your own touch on the finished home.

Yes, this type of housing is making a great impact in the Portuguese market, such as with companies like Portugal Karmod. For example, Karmod offers quality prefab houses across the world that can be customized to the buyer.

Advantages of Choosing a Prefab House in Portugal

Choosing a single-story prefab house in Portugal can be a great option, with room to expand into more stories if desired, or to add sought-after amenities like a swimming pool. Some of the main advantages of prefab houses include:

• Cost efficiency: Reduced labor costs as prefab houses are built in controlled factories, therefore cutting labor expenses and creating cheap houses for sale in Portugal. Alongside this, materials can also be saved. 
• Energy efficiency: The efficient design of prefab houses can reduce energy inefficiency, both during the building stages and in the finished product. Many modular houses can easily include solar panels and energy efficient windows. This reduces the overall carbon footprint of the home compared to traditional construction methods. 
• Quality control: Factories can ensure high-quality building of modular houses, plus indoor work minimizes weather delays. 
• Faster construction: Modular construction is time efficient, so modular houses are generally much quicker to assemble than traditional houses. 
• Sustainability: Modular homes do not follow traditional construction methods and can be produced with sustainability and energy-saving mechanisms firmly in place. 
• Less maintenance: A prefab or modular house will generally need less maintenance, given the smaller space and durable materials used. This is especially true for basic models. 

Prefab Homes Portugal: Prices, Models, and Characteristics

In this section, we’ll delve into the prices, models, and characteristics of prefab and modular homes in Portugal, so you’re more clued up on whether this could be a viable option for you.

Prices of prefabricated houses in Portugal

The price for prefab houses or modular homes will vary depending on the size, the model, how many bedrooms and bathrooms the home will have, additional features, and which construction company you choose to work with. For a 150 square meter, three or four-bedroom house with two bathrooms, expect to pay between €155,800 to €193,930 for the turnkey package of a prefab house. However, basic models cost as low as €40,000 to €50,000, giving you access to Portugal properties under 50K.

Models and types of prefabricated houses in Portugal

Models of prefab houses and modular homes in Portugal range in architectural style, although most tend to have a modern look to them, especially with the tiny home trends gaining traction worldwide . Many prefab houses also have minimalist designs, with various layouts and aesthetic feels, providing buyers with a fair selection of properties depending on their preferences. You can also find single or double-story luxury models, micro homes, lodges, cabins, bungalows, mobile homes, and even modular small villas with a pool in Portugal.

Characteristics of prefabricated houses in Portugal

A prefab house in Portugal will usually be built with energy efficiency in mind. For example, many prefab houses Portugal offers will feature excellent insulation and efficient heating and cooling systems. Additionally, these prefab homes in Portugal often incorporate sustainable materials and building practices, reducing their environmental impact. You can also customize the home, in many cases, to reflect your personal tastes and preferences.

Prefabricated and Modular Houses: Challenges and Considerations

Here are some considerations that you should take into account if you are considering opting for a prefabricated home in Portugal.

Selecting land

The first step before you consider a prefab house is to find land for sale where your new home will be situated. It’s recommended that the manufacturer visit the site to evaluate the location of the intended prefab house, land conditions, sun and wind orientation, and other factors.

The manufacturer, at this stage, may quote land preparation costs that are not included in the initial price. You will also need to adhere to consult the Municipal Master Plan (PDM), as they are the body responsible for qualifying the land, for example, whether it is urban or rural, etc.).

Alongside this, you will need to adhere to legal considerations. For example, the land should not be in an environmentally protected area, given the construction limits here, which often make it impossible to buy land with the intention to build on it. It is worth working with a Portugal real estate lawyer to assist you with the legal aspects of the buy.

Building the prefab home

While the building of prefabricated houses is generally more affordable, modular houses will need a construction license, which will add to the costs, alongside the land acquisition and building costs associated with the prefab construction.

Also, securing financing for a modular home can be slightly trickier, as there are usually higher interest rates and shorter repayment terms compared to conventional buildings.

Licensing

1. You will need to ensure that you have property licensing before you go ahead with the construction. This involves requesting prior information from the Municipal Council about where the house will be built to guarantee the project can go ahead. You will need to present architectural plans to the City Council of the municipality where the house will be constructed before any assembly or building work begins. 
2. Once approved, the technical projects will need to be presented – such as sewage, electrical supply, and gas installation – so that the City Council can consult the entities responsible before issuing a building permit. 
3. Once the building permit is issued, the building work can be carried out. A contractor will need to be responsible for the work and the site book. 
4. When the construction is finished, a use license must be requested from the City Council’s urban planning services. This will be issued after it has been confirmed that the work complies with the approved projects. This will be done through an inspection of the property. 

Taxes

In order to own a prefab house, Portugal requires certain property taxes to be paid. You will need to consider the taxes to pay for prefabricated and modular homes, which will fall either at the time of purchase or on an annual basis. For example, prefab houses will attract municipal property tax (IMI), which is applied based on the taxable value of your prefabricated property. You can consult our article here for more information: Property Taxes in Portugal in 2024.

Prefab Homes Portugal: Why opt for a prefab home?

Prefab housing can ensure top-quality materials are used while embracing construction methods that promote sustainable living, such as increasing building energy efficiency. Alongside this, you’ll also find that prefabricated and modular homes are more affordable than the traditional construction practices for building properties, and, to a certain extent, you can still customize the house to fit your preference. However, determining whether this housing solution is the right choice for you will depend on your specific needs and requirements.

Working with a Buyer’s Agent to Buy Property in Portugal

A buyer’s agent can prove to be a godsend in the buying process. While real estate agents work for the seller and will receive a higher commission for a higher sale, a buyer’s agent works solely on behalf of the buyer, providing access to listings that you will not find elsewhere, ensuring the negotiation stages run smoothly, and assisting you throughout the buying process.

Why work with Goldcrest?

Thinking about buying a property in Portugal? Goldcrest is a local buyer’s agent based in Lisbon, Porto, and the Algarve that provides insightful real estate expertise and strategic advice. From sourcing to property acquisition, we offer a tailor-made service for our clients, assisting them in identifying outstanding investment opportunities in some of Portugal’s finest locations, from relocation to investment projects. You can read more here: Why Work With Goldcrest to Buy Property in Portugal?