Are modular homes a good choice for real estate investors?

Investment in real estate is definitely a good source of potential profits. However, it is worth considering whether to bet on traditional construction, or whether it is better to take an interest in modern modular homes. They have numerous advantages that investors should appreciate.

Modular construction is a modern trend, gaining popularity in Central Europe or Scandinavia. In Poland, too, there are more and more people who are interested in this type of investment - and no wonder! A modular building is made of separate elements - precisely modules - which are produced in a factory, most often from ecological prefabricated elements, such as pressed wood, and assembled together on the construction site. As a result, its erection is very quick and easy, and in terms of usability, aesthetics or quality, it does not differ from a building created in the traditional way... or falls in favor. Modular building can serve as dwellinghouse, a small bungalow whether offices - It depends only on the decision of the investor. But is it a good idea to put up such buildings for investment purposes? By all means!


Comparison of investments in modular and traditional homes

Modular houses, regardless of their intended use (residential or commercial, such as offices), are much cheaper to build and maintain than traditional buildings. For example, for a bungalow with a built-up area of up to 35 m2 - that is, one that can be erected without a permit - or up to 70 m2 (construction in a simplified procedure), the price is about PLN 3,900 per m2. A modular office with a built-up area of up to 35 m2 is even cheaper, as it only needs about PLN 3 thousand per square meter. Thanks to the use of high-quality materials used in the construction of individual modules, precise assembly, as well as excellent sealing, modular homes are also usually more energy-efficient than traditional ones. This means not only lower energy bills, but also greater environmental friendliness, thanks to which the builder can build his prestige as a socially responsible entrepreneur, and thus attract new satisfied customers, while at the same time putting his hand to the fight against climate catastrophe. Of course, in investing in real estate, the time it takes for a building to become profitable is very important. The construction of modular homes is very fast - a fully equipped bungalow or house can be put into use in just a few to several weeks. Thus, with this type of construction, the investment will begin to pay off more quickly. At the same time, a modular house can be erected practically anywhere, on any terrain, even one where the erection of other buildings is impossible or very difficult. It is also a very mobile solution - in case of emergency it can be easily taken apart, moved to another place and put back together again.


Modular homes as rental investments

All of the above advantages make modular houses great as rental investments. Added to this is their multifunctionality - you can quickly and inexpensively erect even a lot of buildings of this type for different purposes, for example, residential or office. Residential can serve as year-round or seasonal, they are great as hostel elements. All we need to do is to choose the designs that suit us. Due to the relatively low price of construction and operating costs, modular home rentals can also be offered at prices much more attractive than those of competitors with traditional buildings. These same factors also make it worth investing in modular homes for sale.


Modular property management

Modular property management is basically no different from traditional property management. It can be carried out on your own, using a suitable IT system, or you can hire specialists.


Rules and regulations for modular homes

Another advantage of modular construction is the legal simplification associated with the erection of such buildings. Namely, residential houses and offices with a construction area of less than 35 sqm do not require a building permit; only a notification will suffice. Besides, as of January 3, 2022, anyone who owns a building plot can build a house of up to 70 m2 on it, under a simplified procedure. Simplified, that is, without having to hire a construction manager and keep a construction log. Of course, professionals can be hired; however, there is no such legal requirement. Under this program, you can build a single-family detached house that has no more than two stories and is entirely contained on the plot or plots on which it is designed. It can be a house built for personal residential purposes or as a recreational home.

This simplified procedure can be used by anyone who has the right to dispose of real estate for construction purposes, provided that the investment meets their own residential or recreational needs. It does not matter marital status, social status or family situation. Moreover, all the necessary documents can be submitted online, which helps save time and money. In addition, the municipality's zoning decision is issued in a shorter period of time, up to 21 days. Once the construction is completed, the house can be sold, rented out or rewritten to another person.

These facilitations in the construction of houses up to 70 m² are part of the new Act of September 17, 2021 amending the Construction Law Act and the Spatial Planning and Development Act (Journal of Laws, item 1986).