In recent months, the spotlight has turned to modular homes as a fast, affordable, and sustainable solution to housing crises across Europe.
While countries like Portugal are embracing the model with growing success, Ireland’s experience has been mixed, particularly in Dublin, where recent modular social housing projects have drawn sharp criticism. The Journal
This is a rather hard pill for me to swallow, as I am a big advocate for modular construction as an effective way to help relieve the current housing situation in Ireland. But we need to talk about this.
Portugal’s Modular Surge – Efficiency Meets Demand
According to Fixando, a leading service contracting platform in Portugal, demand for modular homes is set to soar by 221% in 2025 compared to the previous year.
The first few months of 2025 already recorded a 261% jump in interest compared to the 2024 monthly average. Key regions experiencing the highest demand include Lisbon, Porto, and Braga.
This rise in demand is due to several key advantages:
- Shorter Delivery Times: – Modular homes can be completed in months rather than years.
- Lower Costs – With the average home priced around €48,000 (in Portugal), affordability is very attractive.
- Sustainability – Off-site construction reduces waste and allows for more efficient use of materials.
- Design Flexibility – Modules can be customised and expanded as needed.
Portugal’s success story is driven not just by private sector enthusiasm but also by the growing recognition that modular homes could help address the housing shortage faster, especially if supported by government policy.
Dublin’s Current Stumble – A Cautionary Tale
Meanwhile, Dublin’s rapid-build modular housing projects by developer Sisk Contractors paint a starkly different picture.
According to a recent Dublin City Council report, four modular social housing developments to deliver 263 homes – (Bunratty Road, Cork Street, Bonham Street, and Springvale) experienced:
- Cost Overruns – €39.4 million in extra costs.
- Delays between 2 to 6 years for modular construction! – Due to pandemic disruptions, contractor changes, and poor oversight.
- Quality Issues – Fire safety risks, damp, and sub-par construction.
The root cause?
A lack of oversight and adequate expertise in modular building. While inspections were carried out during factory construction, on-site monitoring fell short, leading to poor finishes and disputes between the city council and developer Sisk.
Councillors like Darragh Moriarty have rightfully pointed out that “quick fixes” are not the answer. Modular housing has enormous potential, but as the report highlighted, it must be executed with sufficient training, experience, and monitoring.
How Ireland Can Move Forward.
Despite these setbacks, I believe modular construction should not be dismissed.
If anything, Dublin’s experience offers some critical lessons for scaling this housing model successfully across Ireland:
1. CENTRALISED OVERSIGHT WITH MODULAR EXPERTISE.
Set up a national Modular Housing Taskforce within the Department of Housing, made up of modular construction experts to oversee all public projects. This in my humble opinion, has much better potential than the recent ‘Housing Czar‘ theatre proposed by the Taoiseach.
2. STRICT CONTRACTOR VETTING AND TRAINING.
Require all contractors working on modular housing projects to be certified in off-site construction standards.
3. THIRD-PARTY QUALITY ASSURANCE
Implement an independent QA framework that ensures both factory and on-site stages meet safety and build quality standards.
4. PUBLIC AWARENESS CAMPAIGNS.
I believe the state can promote or create conversation about successful case studies from Ireland/Europe on news outlets or social media. This could be a way to make the general Irish public more aware of the possible benefits of modular construction and earn their trust.
5. FUNDING & TAX INCENTIVES
Local governments already provide funding to Approved Housing Bodies to build social housing. What if there was some nation-wide incentive in place to encourage the building of social modular homes specifically?
I am usually on the fence about providing tax breaks for private developers, but we do not have a choice at this time in Ireland. Tax breaks around modular construction could prove very beneficial for everyone in the short-medium term.
Final Thoughts
Modular construction remains a powerful solution to Ireland’s housing shortage. While Portugal is showcasing its viability through private investment and growing public acceptance, Ireland must address the gaps in governance, expertise, and quality assurance that marred its early efforts.
By learning from both its own setbacks and the successes of others, I believe that Ireland can transform modular housing from a cautionary tale into a cornerstone of housing delivery.
Let me know what you think.
SOURCES
- TheJournal.ie, “Report into Dublin rapid-build homes finds defects and lack of oversight” (April 2025)
- TheJournal.ie, Dublin City Council’s costs overran by almost €40 million on four housing projects (January 2025)
- Idealista.pt, “Demand for modular homes skyrockets in Portugal” (April 2025)
- Statutory Audit Report to the Members of Dublin City Council for the Year Ended 31 December 2023
