What drives the cost of modular construction

Pacarada Modular Building Systems, Kelkheim (Taunus), Germany · Last updated: October 2026

What does modular construction cost per square metre? There is no reliable flat price, because, as with conventional construction, the cost depends on the project. But some factors have a particularly strong effect in modular construction. Knowing them early lets you control the cost.

Hand drawing a falling cost curve, illustrative image — Illustrative image

Cost per square metre: why figures are rarely comparable

Anyone comparing prices per square metre should ask three questions:

Which area? Gross floor area, usable area or living space: the same price looks considerably higher or lower depending on the reference area.
Which costs? Only the building itself, that is cost groups 300 and 400 of the German standard DIN 276, or also land, site development, outdoor works and ancillary costs?
Which price basis? Net or gross, and from which year? Construction prices change, and old figures are misleading.

A price per square metre without this information says little. Only a cost estimate for the specific project is reliable.

What the cost is made up of

In Germany, DIN 276 divides the cost of a building project into eight cost groups. Modular construction mainly changes two of them.

Cost group	Content	In modular construction
100 Land	purchase price and incidental costs	as for any building
200 Preparatory measures	site clearance and development	as for any building
300 Building: construction	foundations, structure, walls, floors, roof, facade, fit-out	mostly made in the factory; the foundations are built on site
400 Building: technical systems	heating, ventilation, plumbing, electrical	largely pre-installed in the factory
500 Outdoor works	paths, landscaping, parking	as for any building
600 Furnishings	furniture and equipment	often supplied from the factory for hotel, care and student rooms
700 Ancillary costs	design, surveys, permits	design completed earlier
800 Financing	interest and commitment fees	shorter construction time, less interim financing

Land, site development and outdoor works therefore cost the same as for any other building. The difference arises in the building itself and through the construction time.

Eight factors that decide the price

The following factors decide how economical a modular building becomes.

1. Repetition and grid

The more identical or similar modules a building has, the more efficient series production in the factory becomes. A well-thought-out grid is therefore one of the biggest cost levers. Variety is still possible: through the facade, the combination of floor plans and the finishes.

2. Early, finalised design

The factory works from fixed drawings. Changes after production starts are expensive. It pays off when the architect, structural engineer and modular construction partner plan together from the start and the design is matched to the system.

3. Degree of prefabrication

The more is finished in the factory, the less work is left for the site. In the Pacarada system this includes finished bathroom pods and a plug-in electrical installation as in the automotive industry, prepared in the factory and simply plugged together on site.

4. Transport and assembly

The size and weight of the modules, the distance between factory and site, the crane class and site access all affect the cost. Where large room modules would be uneconomical to transport, the Pacarada system can work with columns and beams (1D) or flat wall and floor elements (2D).

5. Site and foundations

Ground conditions, foundations and connections to water, drainage and power cost much the same in modular as in conventional construction. A soil survey therefore belongs at the start of every cost estimate.

6. Building class and standards

Height and use determine the requirements for fire protection and sound insulation. The energy standard affects costs and possible funding. With the Pacarada system a new building with 123 apartments was built in Frankfurt am Main to the Effizienzhaus 40 standard.

7. Construction time as a cost factor

Time is money: a shorter construction time reduces interim financing and site costs and allows earlier use or letting. When an office building in Darmstadt was converted into 197 homes, construction with the Pacarada system was 44% faster than conventional construction.

8. Life cycle

Because everything in the Pacarada system is bolted and plugged, a building can later be converted or dismantled, and its components can be reused instead of being disposed of. That counts when you look not only at construction costs but at the cost over the building’s whole service life.

The factors at a glance

Factor	What you can do
Repetition and grid	Match floor plans to a common grid
Design	Involve the modular partner before the design is fixed
Prefabrication	Have as much as possible finished in the factory
Transport and assembly	Check site access and crane position early
Site and foundations	Start with a soil survey
Standards	Settle the energy standard and funding early
Construction time	Plan factory production in parallel with site work
Life cycle	Consider dismantling and reuse from the start

Comparing quotes properly

A quote for a modular building often includes more than a quote for the shell in conventional construction. Check what is included:

Design: production design, structural analysis, verification of fire protection, sound and thermal insulation.
Building: structure, facade, roof, windows, interior fit-out, bathrooms and building services.
Transport and assembly: transport, crane and assembly team.
Foundations and connections: foundations, ground slab or basement, utility connections.
Outdoor works and furnishings: included or provided by the client?
Price basis and price validity: how long is the price valid, and what happens if things change?

When the price is fixed

In conventional construction the price becomes more precise with every design stage, from the first budget through the cost estimate and cost calculation to the quotes of the individual trades. In modular construction the design is completed before production starts. The price for the building is therefore usually fixed earlier and more reliably. For clients this means more decisions at the beginning and fewer surprises at the end.

Frequently asked questions

What does modular construction cost per square metre?

There is no reliable flat price. The price depends on the building type, energy standard, finishes, number of storeys, location and number of units, and on which area and which cost groups it refers to. Only a cost estimate for the specific project is reliable.

Which costs come on top of the modular building?

Land, site development, foundations, utility connections, outdoor works and ancillary costs such as design, surveys and permits. They arise for every building, whatever the construction method.

Is modular construction cheaper than conventional construction?

Not automatically. Modular construction mainly saves time and makes costs more predictable: construction time is usually shorter, fewer skilled workers are needed on site, and risks such as weather or delays in individual trades have less effect. What that means in euros depends on the project.

When should I involve a modular partner?

As early as possible, ideally before the design is fixed. The building can then be matched to the system grid and later redesigns can be avoided.

How do I get a cost estimate for my project?

Send us the building type, project location and, if available, drawings or a site plan via the contact form. Pacarada Modular Building Systems in Kelkheim (Taunus), Germany, will give you a first assessment for your site.