Expert sees bright future in prefabricated houses

The future of prefabricated housing looks brighter as Tanzania continues to face higher demand for houses amid deficit, an industry player has said.

Salim Mbarouk, the managing director of SPH Group which deals with the construction of prefabricated houses in Tanzania, said the industry is currently still at its infant stage of growth but there have been a growing demand for the houses among both corporations and private residents.

“We expect and anticipate the dynamics to change in the coming years with more interest for private residential projects coming in,” said Mr Mbarouk in an interview.

Prefabricated structures are built using pre-made components that are manufactured off-site in a factory.

In Tanzania, most of these buildings are currently implemented in government and corporate projects, especially in the oil, gas and energy related projects in which offsite camps for accommodation and offices are constructed in remote areas.

The construction of the prefabricated housing is said to be faster by between 30 and 50 percent compared to traditional block houses and cheaper by 20 percent.

“This speed can be particularly beneficial in situations where rapid housing is needed, such as disaster relief efforts or urgent housing demands,” said Mr Mbarouk who has been in the industry since 2019.

The global prefab housing market has been experiencing significant growth in recent years due to various factors including design flexibility, cost effectiveness, energy efficiency and environmental sustainability.

According to a report by Grand View Research, the global prefab housing market size was valued at $112.4 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.2 percent from 2022 to 2028.

In Tanzania, the demand for prefab housing is said to continue growing annually as “more people recognize its benefits, and governments and builders seek innovative solutions to address housing challenges and affordable construction alternatives.”

“Tanzania, like many other developing countries, has a significant demand for affordable housing. Prefab housing can be an attractive solution due to its potential cost-effectiveness and shorter construction timelines,” said Mr Mbarouk, adding that the industry might witness growth as the government and private sector focus on addressing the housing deficit.

In Tanzania, the industry is currently limited by low awareness, cultural preferences, shortage of skilled labour, infrastructure challenges, financing options and affordability of the houses.

The government also needs to establish regulatory framework to ensure safety, quality, and compliance.