Modular construction increasingly popular in local governments

The improvement of modular construction is increasingly noticeable in local investment. This is mainly affected by the faster pace of work being carried out compared to those utilizing conventional construction technologies. It is besides crucial to meet environmental conditions, including advanced energy efficiency of buildings, which has an impact on the anticipation of obtaining backing from the National Recovery Plan. Local governments have small time to finalise subsidised investments. The deadline is 31 August 2026.

– Today we are in local governments mainly in 2 sectors. This is educational construction, related to the widely understood sector of public utility construction, namely schools, nursery schools, kindergartens. 2 is housing. Here again we have 2 streams, due to the fact that they are both municipal and social buildings – Says Newseria Kamil Kowalczyk, associate of the Board of Unihouse.

Modules are utilized in modular construction – light constructions of different sizes and equipment. They can be made of various materials, depending on the intent and technology of the manufacturer, e.g. wood, steel, concrete and keramzitobetone. The production of modules takes place at partial automation, in halls, under controlled conditions, so it is possible throughout the year in contrast to the conventional construction process. Prefabrication can be utilized in both housing – especially for the creation of flats for rent with average rent as part of social housing initiatives (SIM), as well as public utility facilities – kindergartens, nurseries or schools.

According to a study published by Spectis "Modular construction in Poland 2025-2030", in 2023 the value of the marketplace remained at PLN 4.8 billion. In 2024, the estimation increased to PLN 5.1 billion, and this year, further, more dynamic growth is forecast. The interest in modular construction is noticeable throughout the country, including in local governments.

– In general, the construction and assembly production sector is about 2%. In my opinion, this is simply a much higher indicator in local governments. I would measure it closer to the 5 or 6 percent limit, due to the fact that we see that local governments are more willing to go to prefabrication methods. They know that this gives them a better product, affect less people to oversee the project. In fact, most of the work is carried out by mill production control, which supervises all phase of the process – Kamil Kowalczyk says.

Among the factors supporting the further improvement of the modular buildings market, according to the Spectis report, there are, among another things, solid long-term macroeconomic foundations of the Polish economy, persistent shortage of housing in Poland against the EU average, increased interest among Poles in housing or expanding force to shorten the construction process. Now besides measures from the National Reconstruction Plan stimulate the improvement of modular construction. The programmes financed by the EU Reconstruction Fund include support for green transition, sustainable improvement and improvement of method and social infrastructure (including the construction of fresh housing and modernisation of existing housing). So far (data for April 2025) 6302 apartments have been eligible for support from KPO funds.

Co-financing from KPO includes, among others, the creation of housing for rent with the engagement of the municipality or the inter-municipal union (SIM, TBS), as well as municipal housing. The condition is to complete the investment by 31 August 2026. Building construction in specified a short time utilizing conventional technologies may not be possible, hence modular construction.

– Local governments request to settle their investments in a very short time, so they are very eager to get prefabricated. late we signed a contract to build 95 apartments in Będzin, through SIM Zagłębie, which is owned by respective municipalities – from Zagłębie, the metropolis. In fact, in the course of the year, we are to deliver about 10,000 m of full space. This would not be to be achieved by utilizing another technology. In addition, thanks to the prefabrication, the buyer could scope for additional funding, if I remember correctly, of 12 million PLN – points out Kamil Kowalczyk.

Modular buildings are energy-efficient, so they fit into modern standards of sustainable construction. In practice, this means that they can accomplish an yearly primary energy request rate (EP) below 52 kWh/mkw/year. They so fulfil the conditions for obtaining additional backing from the KPO. Modules are built and made for minimising environmental impacts.

– In our homes we kind waste into 4 factions, and in our production we kind it into 16 factions, and of that 80% is actually re-used or recycled. The same is actual for waste generated. We are able to go down to tens of kilograms of waste per square meter. This aspect of self-government is actually discovering – says Unihouse expert. – Secondly, it is, of course, energy efficiency As a standard, our products have indicators above those resulting from method conditions. We are practically mandatoryly examining all buildings for air tightness of these objects. This is 1 of the key aspects of energy efficiency.

Energy efficiency, which results from the usage of thermal insulation materials, translates into lower costs of building operation. This allows local governments to offer lower rent to tenants of municipal and social buildings. The popularity of modular construction is besides due to the fact that the modules can be utilized to build both studios and premises whose meters exceed approx. 100 sqm.