The boom of prefabricated houses and the mortgages to buy them

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First came the financial crisis of 2008 and, without recovering, suddenly came the COVID-19. Many who were already in mortgage loans since the beginning of the previous decade or the twenty-first century, now see how their finances do not hold. In turn, most young people find it hard to imagine buying a home in the traditional way: taking out a mortgage, as their parents did years ago. However, in times of recession, new business opportunities always arise and the purchase of prefabricated houses with the purchase of prefabricated houses with mortgages or "a tocateja" seems to be a new rising market in the real estate sector.

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Prefabricated Houses

How much do prefabricated houses cost in Spain?

Prefabricated houses had their boom in the twentieth century, especially in the United States and Canada: prefabricated houses made of wood, concrete, steel ... even European countries such as France and the United Kingdom also noticed an upturn in the market for this type of home. However, prefabricated houses in SpainHowever, prefabricated houses in Spain have never enjoyed a good reputation and until very recently, they have barely had any pull in our real estate market.

Traditionally, we associated prefabricated houses to modular and not very aesthetic containers, very common in works and momentary installations. However, the financial situation, mainly, invites many to consider the purchase of this type of housing. In turn, progress in aesthetic and design aspects has also helped to increase demand. Therefore, currently, for prefabricated houses prices are much lower than for industrialized and conventional industrialized and conventional housing.

In fact, we can roughly establish that the square meter for the prefabricated houses in prefabricated houses in Barcelona, Madrid or other important Spanish cities oscillates the 1.000€. That is to say, it is possible to buy prefabricated houses financed or with own capital of between 80 to 100 square meters for amounts of between 10,000 and 30,000 euros. However, we must bear in mind that there are many factors and variables that will influence the final cost of such a house.

What does a prefabricated home include and what requirements do I have to meet? 

As we mentioned, this kind of housing has become an attractive option for its innovation in design, for shortening construction times and for its cost. The problem is that, as buyers of a prefabricated house, we will have to weigh many more variables than if we buy a conventional home. Variables such as: 

  • The materialsThe materials, since prefabricated houses made of wood will not cost the same as prefabricated houses made of concrete.
  • The services included in the estimate that we have been given (if it offers a geotechnical study, insurance, topographical survey...)
  • The square meters of the houseThe larger the property, the lower the cost per square metre.
  • The quality of the finishes and the equipment of the house of the house, for example, if it includes home automation.

At the same time, before embarking on such a project and making calculations to apply for your mortgage, make sure that the property meets the following requirements: 

  • It will be built on developable land.
  • To be found at Anchored to the ground.
  • It has municipal license and with a project of work approved by a college of architects.
  • It will be registered in the Land Registry.

If we don't leave any of these loose ends, we can take the next step by asking ourselves a question: do you have enough savings and equity or will you need to look into possible mortgages to buy financed manufactured homes? 

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Manufactured Home and Mortgage Obtaining

How much does a prefabricated house made of wood or other material cost?

Due to the growth in the demand for this type of housing (between 2015 and 2019 grew by 40%, according to one of the latest reports of the portal Habitissimo), the offer has also become more specialized. Now we have greater variety in terms of materials, which can make the total costs much cheaper or more expensive.

If we talk about the cheapest, prefabricated wooden houses and PVC are cheaper, with final prices around the 40.000 € on average. Somewhat more expensive are prefabricated concrete houses, which, due to their resistance, can reach a final price of up to 100,000 €.

Even so, banks have also detected in modular housing an opportunity and already offer various mortgages for the purchase of cheap and offer various mortgages for the purchase of cheap and financed prefabricated houses. Even, since they are amounts, in general, lower than those of traditional housing, the mortgage market gives us the possibility of acquiring prefabricated concrete houses financed 100%, as long as we meet their requirements. The big question is: Are these new homes are here to stay or are they a fad?

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