Africa Prefabricated House Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 5.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Africa Prefabricated House Market Analysis
The size of the Africa prefabricated housing market is USD 4.8 billion in the current year and is anticipated to register a CAGR of over 5.5% during the forecast period. The market was negatively impacted by COVID-19 in 2020. The growth was impacted due to the economic downturn caused by the COVID-19 pandemic across the residential, commercial, industrial, and institutional sectors in Africa.
- Prefabricated housing created affordable housing solutions and many employment opportunities for the residents. Due to the lack of the ability to provide housing on time in terms of human resources and materials, serious housing shortages exist across Africa.
- The lack of end-user financing and affordability makes the situation more difficult. The government and developers are constantly striving to find solutions to make it possible for middle-income people to buy their own houses. Developers are seeing rapid urbanization as an opportunity.
- In 2021, the GDP of the Nigerian real estate industry recorded positive growth, a 2.3% increase from NGN 3.96 trillion (USD 8.6 billion) recorded in the previous year. Despite the activities witnessed in 2021, the housing deficit in Nigeria remains at about 22 million. The market is yet to see the expected home demand and supply volume.
- Nigeria's housing inventory is dire, with a chronic shortage of affordable and available homes needed to support the nation's population. According to Oxford Business Group, by 2050, Africa's population will double, meaning that the region will include added 3.5 million people per month. Africa will contribute more than half of the world's total population growth by then and more than three-quarters of that growth up to 2100.
Africa Prefabricated House Market Trends
Shift Towards Prefab Housing due to High Pricing in Egypt
The construction sector is a major contributor to Egypt's economy. With the sector expanding in size and importance, alternative and more efficient construction methods are slowly being introduced to Egypt's building sites. These include prefabricated (or prefab) and modular construction, which are growing in popularity worldwide as time-saving and cost-efficient alternatives to traditional construction. Housing is the key to safety and reassurance, and the government found some individuals are facing difficulty in obtaining housing as a result of the very high prices of housing units. It is seen as an opportunity for the growth of prefab houses to reduce the overall house cost and make it affordable.
Madinet Nasr for Housing and Development (MNHD) announced in October 2022 the signing of a partnership agreement with DMC, one of the leading Egyptian contracting companies in general contracting & project construction - to execute the construction of 13 buildings in the Lake Park project in Taj City. The project's total investment is valued at EGP 350 million (USD 11.43 million)and is expected to be delivered within 18 months. Lake Park introduces a unique modular community that combines a wide selection of vistas and modular, customizable homes.
Opportunity for Prefabricated Housing Market in South Africa Affordable Housing Projects
South Africa is urbanizing swiftly, as is the continent. In the last decade, the urban population expanded at a 2% yearly rate, and by 2030, 71% of South Africa's population will live in cities. The government could not meet the metropolitan population's housing needs despite supplying roughly 3 million state-sponsored homes to low-income households since 1994. The government tried to address the affordability of mortgage finance to low-income households through demand-side capital subsidies. First-time buyers earning between ZAR 3,501 (USD 213) and ZAR 22,000 (USD 1,341) could be eligible to receive a subsidy to purchase property under the Finance-Linked-Individual Subsidy Program (FLISP). Recent two-bedroom homes start at ZAR 679,000 (USD 41,374) with 9% interest and no deposit. Monthly payments would be ZAR 6,000 (USD 366) with a FLISP subsidy of ZAR 20,000 (USD 1,219). Even with a FLISP subsidy, these home prices are unaffordable for those earning ZAR 18,000 (USD 980) or less.
The NHFC is working on an initiative involving the private sector to generate ZAR 1.5 billion (USD 91.3 million) to finance 35% of social housing developments through public funds, debt, and equity. It aims to yield 8,000 to 10,000 new units in the next eight years. The NHFC's strategy is instrumental in the effort to address the shortfall in the supply of 'gap' housing, that is, households earning between ZAR 3,501 (USD 213) to ZAR 22,000 (USD 1,340) per month by April 2032. In 2021, 32,627 residential units were reported to municipalities as completed. In the new build market, 65,591 new transactions were recorded in 2021, which entails properties registered on the deeds registry for the first time, i.e., newly constructed residential units. Nearly half of these (30,150) were properties subsidized by the government.
Africa Prefabricated House Industry Overview
Africa's prefabricated housing market is relatively fragmented. Several international and domestic companies are present in Africa's prefabricated housing market. Companies are implementing effective production technologies to minimize product costs and reduce related risks. High capital requirements and rapid technological advancement are important barriers to entry for new participants. The market is expected to grow during the forecast period due to increased prefabricated housing construction building investments and upcoming major projects. Intensified competition led to the emergence of many innovative and advanced solutions in the market, such as turnkey solutions and lightweight ceramic houses. Major players are Karmod Prefabricated Building Technologies, Kwikspace Modular Buildings Ltd., Cube Modular, Fabricated Steel Manufacturing, and Concretex.
Africa Prefabricated House Market Leaders
-
Karmod Prefabricated Building Technologies
-
Kwikspace Modular Buildings Ltd.
-
Cube Modular
-
Fabricated Steel Manufacturing
-
Concretex
*Disclaimer: Major Players sorted in no particular order
Africa Prefabricated House Market News
- May 2023: A new prefab housing structure is under development by Amsterdam-based architecture firm NLE. They installed a model in Africa's Cape Verde to understand its viability's various aspects as floating houses. The idea is to reduce the overall cost emanating from land prices.
- January 2022: Housing is one of the major challenges of a city resident in Addis Ababa, the capital city of Ethiopia. Hence, the Addis Ababa City Administration laid the foundation for 5,000 prefabricated houses in the Akaki Kaliti sub-city. Addis Ababa City Administration also stated that 2 million houses would be built during the ten-year development plan.
Africa Prefabricated House Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Insights on Supply Chain/Value Chain Analysis of the Prefabricated Housing Industry
4.4 Cost Structure Analysis of the Prefabricated Housing Industry
4.5 Insights on Different Types of Materials used in Prefabricated Housing Construction
4.6 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers / Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Single Family
6.1.2 Multi Family
6.2 By Country
6.2.1 Nigeria
6.2.2 Egypt
6.2.3 South Africa
6.2.4 Rest of Africa
7. COMPETITIVE LANDSCAPE
7.1 Overview
7.2 Company Profiles
7.2.1 Karmod Prefabricated Building Technologies
7.2.2 Kwikspace Modular Buildings Ltd.
7.2.3 Cube Modular
7.2.4 Fabricated Steel Manufacturing
7.2.5 Concretex
7.2.6 Global Africa Prefabricated Building Solutions Ltd.
7.2.7 Panelman Engineering
7.2.8 House-it Building
7.2.9 Nyumba
7.2.10 M Projects*
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
9.1 Macroeconomic Indicators (GDP breakdown by sector, Contribution of construction to economy, etc.)
9.2 Key Production, Consumption, Exports & Import Statistics of Construction Materials
Africa Prefabricated House Industry Segmentation
Prefabricated homes, often called prefab homes, are primarily manufactured in advance off-site, then delivered and assembled on-site. The report covers a complete assessment of the Africa Prefabricated Housing Market. It includes an assessment of the economy market overview, market size estimation for key segments, and emerging trends in the market segments. The report sheds light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the Africa Prefabricated Housing Market is depicted through the profiles of active key players. The report also covers the impact of COVID-19 on the market and future projections.
The Africa Prefabricated Housing Market is segmented by type (single-family and multi-family) and country (Nigeria, Egypt, South Africa, and the Rest of Africa). The report offers market sizes and forecasts in value (USD) for all the above segments.
| By Type | |
| Single Family | |
| Multi Family |
| By Country | |
| Nigeria | |
| Egypt | |
| South Africa | |
| Rest of Africa |
Africa Prefabricated House Market Research FAQs
What is the current Africa Prefabricated Housing Market size?
The Africa Prefabricated Housing Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in Africa Prefabricated Housing Market?
Karmod Prefabricated Building Technologies, Kwikspace Modular Buildings Ltd., Cube Modular, Fabricated Steel Manufacturing and Concretex are the major companies operating in the Africa Prefabricated Housing Market.
What years does this Africa Prefabricated Housing Market cover?
The report covers the Africa Prefabricated Housing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Prefabricated Housing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa Prefab Homes Industry Report
Statistics for the 2023 Africa Prefab Homes market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Prefab Homes analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Africa Prefab Homes Market Report Snapshots
