July 20, 2024


Mad about real estate

Should the World Go Modular?

Should the World Go Modular?

Modular buildings are built almost entirely in a factory and arrive at the site 90 – 95% complete. Framing, insulation, roofing, siding, doors, windows, electrical, plumbing, and interior finishes are completed in the secure environment of the factory. After which, the modules are shipped to the site where they are ready to be finished with interior amenities, appliances, paint, and carpet.

Key Advantages of Modular Construction?

Short Build Times

Typically, 50-60% less time is taken when compared to traditional methods.

Safer Construction

Modular construction has proven much safer than traditional constructional methods.

Environment Friendly

Efficient factory production techniques are less wasteful and installation is less disruptive.

Reduced Labor Requirement

The erection and finishing teams require fewer workers than traditional methods.


Modular construction can easily be disassembled and then get relocated for new use.


The buildings are designed to quickly add or remove modules suiting to the need of the client.

What types of modular construction are there?

They are of two types: Permanent construction and Relocatable construction. Both methods have their advantages and disadvantages.

Permanent Construction

This type of construction provides markets with the performance of conventional construction in roughly half the time. This construction has a life cycle expectancy identical to that of conventional construction. The design considerations for permanent construction is higher.

Relocatable Construction

It provides the market with instant relief for space needs as the project time for this type of construction is very less. The construction generally provides a life cycle of 1 – 7 years. This market is primarily driven by low-cost of production and speed of construction.

A report by a market research firm estimates a high growth rate for the global modular construction market.

The market is still in its early stages, particularly in the United States, despite having been in existence for at least 25 years. Countries, such as the United Kingdom and India, have shown a significant increase in modular construction. In India, the government plans to build 50 million homes and more than 90 smart cities by the year 2022. Certain cities, like Bengaluru, have already inculcated the modular construction in the residential and industrial sectors.

The main hurdles for modular construction market are increased costs in transportation and logistics. Studies have shown that shipping modules become cost prohibitive when they must travel more than 150 to 200 miles from the factory to site. The industry generally recognizes 125 miles as the maximum practical distance modules should need to travel from factory to site.