UIPI replies to Commission survey on the market potential of offsite construction for housing supply
In March, UIPI submitted its contribution to the European Commission’s consultation on the market potential of offsite construction for housing supply. This initiative is part of the Commission’s broader efforts to explore innovative solutions to address Europe’s housing shortage and improve construction efficiency.
Offsite construction refers to building methods where components are manufactured in a factory and then assembled on-site. The consultation aimed to assess the current state of the market, identify barriers to adoption, and gather stakeholder views on how to unlock its potential across the EU.
In its response, UIPI welcomed the Commission’s initiative, recognising offsite construction as a promising approach to accelerate housing delivery, reduce costs, and minimise disruption during renovations. However, UIPI also highlighted several challenges that hinder wider adoption. Key barriers include high upfront investment costs, limited access to tailored financing, and regulatory frameworks that are still designed around conventional construction methods. For example, permitting processes, fire safety rules, and environmental regulations create additional complexity for modular and prefabricated buildings.
To support the growth of offsite construction, UIPI recommends that policymakers update building codes, assist with streamlining permitting procedures, and develop financial models suited to the unique needs of this sector. Public subsidies, specialised financing, and incentives for early project completion could also help make offsite methods more attractive and accessible.
UIPI is also actively contributing to building knowledge and actionable offsite construction solutions through the BuildUPspeed project, an EU LIFE research project promoting and implementing industrialized renovation solutions.