Modular construction, in which homes are built in sections (or modules), is gaining ground, says a new study, offering a faster, more flexible and cost-effective alternative to traditional building in Portugal.

The study published by service hiring platform Fixando found that, in January 2025 alone, interest in modular homes in Portugal rose by 148% compared to December 2024.

On a broader scale, demand increased by 261% in the first months of 2025 compared to the monthly average for 2024, and the platform expects demand to grow by 221% this year.

According to Fixando, regions showing the highest levels of interest include Lisbon, Porto, Setúbal, Aveiro, Braga, Leiria, and Santarém.

In terms of size, the most requested modular homes are between 80 and 100 square meters (23% of requests), followed by 100 to 130sqm (22%) and 50 to 80sqm (21%). The average budget for the most popular size is estimated at around €48,000.

So what makes modular homes so appealing? The fact that they are built in a factory and then assembled on-site allows for shorter construction times (months instead of years), providing controlled environments that minimise waste and weather-related setbacks, and more predictable costs.

But while interest is rising, companies point to a gap between demand and completed projects. They argue that more public support could help bridge this divide and make modular – or pre-fabricated – homes a more accessible solution across Portugal.

Although modular housing hasn’t yet taken off in the Algarve, its rising popularity elsewhere could inspire future opportunities. A knowledgeable local agent like Algarve Home Sales can help you explore available options. Contact us for more information.