Prefabricated timber construction has strengthened its position in Germany's housing market, reaching a record market share of 26.5% in 2025, according to figures from the German Prefabricated Building Association (BDF) and the Federal Statistical Office.
During the year, 50,755 building permits were issued nationwide for single-family and two-family houses, representing an increase of 14.6% compared with the previous year. Of these, 13,473 homes were prefabricated, marking a 16.7% rise and pushing the sector's market share to its highest level on record, up from 26.1% in 2024.
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The share of prefabricated homes has grown steadily over the past two decades, climbing from around 13% at the start of the 2000s and surpassing 20% for the first time in 2019.
Although the housing market faced a significant downturn after 2021, triggered by rising interest rates, higher material and energy costs, and investor uncertainty, the prefabricated sector has shown stronger resilience than conventional construction.
BDF president Mathias Schäfer said prefabricated construction is recovering more quickly from the crisis and continues to gain importance for sustainable, cost-efficient building, with growing use not only in single-family homes but also in larger residential projects, commercial buildings and neighbourhood developments.
Source: www.moebelmarkt.de
