Cityscape Intelligence is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

How modular construction is transforming real estate

Article-How modular construction is transforming real estate

In progress modular construction of a tall building
Modular construction is gaining traction globally, transforming the real estate industry with efficiency, sustainability, and innovation.

Modular construction is seeing increased usage in the construction industry. As a matter of fact, in 2020 The Global Modular Construction Market size had a value of $91.24 billion in 2020. This is projected to reach $148.97 billion by 2030, representing growth at a CAGR of 6.32% from 2020 to 2030. So, the innovative technique is revolutionising the design and construction process behind buildings. It’s an approach that offers many benefits and is gaining popularity. But, it's still early on in its development and has extensive future potential. So, understanding how it will shape the construction industry going forward is essential.


To understand modular construction, it is important to first define it. In short, modular construction involves building using pre-fabricated units or modules. These modules get built off-site in modular factories. Then, they're brought to the construction site and put together to form the building. This method differs from traditional construction, which uses more on-site labour and materials.


Sketch of a modular construction building.jpg

Customization and standardized components

One of the key benefits of this innovative construction technique is its high level of customization. You can customize modules for homes, offices, or factories. It's easy to adjust the size, design, and layout too. This makes modifications quick and efficient.

The use of standardised components is ideal too. This means modules fit together with ease, forming a unified structure. Modules can range from individual rooms to entire floors of a building.

A sustainable approach

Another notable benefit of modular construction is its sustainability. This is because factories make modules in a controlled environment. In doing so, they cut down on waste and use materials efficiently. Also, these modules are easy to take apart and reuse in different projects. This helps further reduce the environmental impact.

Reduced reliance on skilled on-site labour

Modular construction has revolutionized traditional construction processes too. The shift towards off-site manufacturing and assembly reduces the reliance on on-site labour. This minimises risks associated with skilled labour shortages and it improves worker safety too. The controlled factory environment also ensures higher quality standards, as modules undergo rigorous inspections before installation.

Project management efficiencies and productivity

There are clear benefits when it comes to project management. In particular, it offers a huge productivity boost. It does so by creating clear efficiencies through building modules off-site, allowing for simultaneous construction activities. This not only saves time and money compared to traditional methods, but it also speeds up projects, resulting in improved cash flow for developers and investors. Additionally, the controlled manufacturing process lowers the risk of weather-related delays. This ensures projects finish on time.


While modular construction offers many advantages, it is not without its challenges.

Transportation, logistics, and planning challenges

Transportation and logistics pose potential obstacles, particularly for larger modular units. The size and weight of these modules can make it difficult to transport them to the construction site without damage or delays. Additionally, coordinating the delivery and installation of modules requires precise planning and execution to ensure that everything fits together. This requires thorough project management and planning. Coordination between manufacturers, transportation, and construction companies is essential here.  The problem here arises when this isn’t in place. You’ll lose the time-saving benefits if all processes don’t work together efficiently.

Mixed public perceptions

Many people have mixed views on modular construction. They link it with cheap, poor-quality housing, like mobile homes. Also, some don't grasp how it works. They think the result is less sturdy than traditional building methods. Some people also feel there's little room for customization. This leads them to believe all modular buildings appear identical. Past instances of poorly constructed modular buildings also contribute to negative perceptions. So, to ensure modular construction thrives, it's crucial to tackle these challenges head-on. The industry needs to educate the public about the method's advantages and capabilities. This effort can shift public perception and boost acceptance of the construction method. By doing so, the industry can position modular construction as a reliable and appealing building method. 


Recent success in the MENA region.

Despite being a new proptech innovation, modular construction is already seeing success in MENA real estate. For example. Amana group used concrete modular construction for 18 residential buildings within Turtle Bay Village built by The Red Sea Development Company (TRSDC). This provided 288 apartments for TRSDC staff. The method resulted in construction taking 30% less time or 74 days less when compared to traditional construction methods. Yet this is just one example of the impact Amana Group is having, the company also delivered a total of 50 projects in 2022 alone.

Equally, in 2023 Dubai-based LINQ Modular won the first regional license to use modular construction for buildings up to six stories high. Dubai Municipality awarded the Alec-owned company a first G-6 modal license.

The future of modular construction in the MENA region

The future of modular construction is promising, with several predicted trends and potential challenges to consider. As this construction technique continues to evolve, it will shape the construction industry and influence future development projects.

One of the major roles of construction technique is how it can help MENA countries achieve their sustainable development strategies. Examples of these strategies include Saudi Arabia’s Vision 2030, Egypt’s Vision 2030, Abu Dhabi’s Economic Vision 2030, Qatar’s National Vision 2030, and Bahrain’s Economic Vision 2030. These visions all stress the importance of sustainable solutions. So, this approach offers modern, efficient, and sustainable benefits, aligning with these goals. So, it's well positioned to support these countries in reaching their objectives. With these advantages, we expect to see more widespread use of modular construction in the MENA real estate market.

Also, Saudi Arabia and the UAE, along with other MENA countries, are shifting their economic focus from oil to non-oil sectors. Construction and real estate are pivotal in this transition. So, the MENA region is witnessing rapid real estate development and increased infrastructure demand. Modular construction emerges as a solution to meet these needs efficiently and sustainably. Its benefits, along with technological advancements, position modular construction as a key driver of the region’s construction industry. This method will shape the region’s skylines, enhancing its reputation as an innovation and development hub.


Modular construction has huge potential not only in the MENA region but also worldwide in real estate. It’s transforming the construction industry and redefining traditional processes. By prefabricating modules in factories, it's an innovative approach. This construction method reduces construction time, lowers labour costs, and minimizes on-site waste. It also allows for greater customization, improved quality control, and increased safety. As the world faces housing shortages, environmental concerns, and a need for more efficient construction methods, modular construction offers a promising solution on a global scale.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.