5 Business Benefits of Designer Prefab Homes

The growing demand for prefab homes is causing a shift in the real estate scene. By 2020, global shipments of prefab homes are expected to reach 1.1 million units. This increased popularity can be rooted in its benefits—energy efficiency, transportability, design options, and world-class elegance.

But modern prefab homes are not just stylish, functional, and livable to the core. Homeowners are not the only ones who see it in a different light. Even real estate developers are looking at these projects with renewed interest, gearing up to reap the benefits of building horizontal communities out of prefab homes.

Here are some of the advantages of prefab construction to a real estate business.

Increasing Demands

Market demands change as housing trends evolve over time, and developers should learn how listen to the market to grow and remain strong amidst tight competition.

In the prefab industry, an increased demand is projected. In fact, there will be a 2.7% annual increase in global demand for prefab housing through 2019 to 3.4 million units. This is expected to grow further in the coming years as the market realizes the advantages of prefabs.

This rise of the prefab market around the world poses business opportunities to developers to expand their portfolio and offer the market’s needs for better sales results.

Faster Construction

One of the most important resources in business operation is time. Often, long project schedule increases costs that could otherwise be avoidable. This happens in housing construction too. In India for instance, a new government rule states that real estate developers need to pay home buyers 11.2% interest for delays associated with turning over homes and apartments.

Unlike traditional home construction, prefabs are built faster since parts and materials are manufactured in the factory beforehand. This results in reduced effects of on-site conditions, sub-contractor delays, and other nuances affecting the project time. Because prefabs are quicker to build, more real estate developers can take on multiple projects, enabling business growth.

"Simple" by Jean Nouvel installed in 2 days in the Tuileries b…

A timelapse video of "Simple" by Jean Nouvel in collaboration with Revolution Precrafted. Watch how the home gets installed in 2 days! Visit Simple in the Tuileries Garden by the Louvre Museum in Paris. The showing will be from October 18 – 28, 2016. For more info, e-mail inqiures@revolutionprecrafted.com #architecture #design #FIAC #Paris

Posted by Revolution Precrafted on Monday, October 17, 2016

A timelapse video of Jean Nouvel’s Simple for Revolution Precrafted

Lesser Surplus, Lower Losses

Distressed inventory is one of the biggest challenges of many private developers. In the U.S., a RealtyTrac report found that 1.1 million properties had foreclosure filings in 2014. Foreclosed properties always hurt developers, lenders, and home buyers who are finding ways to lower their losses.

Both developers and homebuyers can leverage on the increasing demands and interests for prefab homes to ensure their returns on investments. For developers, this means fewer chances of having distressed properties. For homeowners, it means their homes will increase in value.


Based on the report from Harvard University’s Joint Center for Housing Studies, researchers estimated that home repairs and remodels would rise to 8.6% this year in the U.S., as remodels are quite expensive. In fact, homeowners spend between $4,500 and $49,000 in remodeling their kitchens. The cost is even higher for remodeling the entire house.

Prefab homes allow both real estate developers and home buyers to adjust the designs of their pre-manufactured homes to provide both limitless ways to transform spaces without compromising aesthetics and quality. Since prefab homes are highly flexible when it comes to design, you spend even less. Developing communities using prefab homes allow developers to be ready to meet new technologies for upgrades and address the demands stemming from the tighter competition.

Designer Status

Many of today’s modern prefab homes are designed by world-famous architects, artists, and designers. These visionaries continue to give not just new looks, but also new life to the once-shunned prefabricated housing. This provides real estate developers with limitless opportunities to work with famous names in the architecture and design scene and the chance to tap a diverse market.

Such rings true with Revolution Precrafted—producer of designer prefab homes exclusively done in collaboration with global creative design leaders like Jean Nouvel, Massimiliano and Doriana Fuksas, Philip Johnson Alan Ritchie Architects, and more. The vision of the project is to democratize high design and make premium precrafted properties like homes and pavilions accessible to the mass market.

These past years have shown how the image of prefab homes have changed. Once considered unpleasant, prefabs are now a stylish, modern upgrade that even the world’s biggest names in architecture and design are working on prefab homes. Real estate developers must realize the benefits it can bring to their business if they jump on this opportunity to create modern living spaces made of prefab homes.