What is the Economic Viability of Modular Construction in High-density Housing Projects?

Hasan Onallah

doi:10.36948/ijfmr.2025.v07i05.58821

What is the Economic Viability of Modular Construction in High-density Housing Projects?

Author(s)	Hasan Onallah
Country	India
Abstract	The growing demand for sustainable, reasonably priced housing in urban areas presents previously unheard-of challenges for the global construction industry. Despite their prolonged vintage, conservative ways are not meeting the deadlines of high-profile housing programs, especially when it includes environmental implications, project timelines, and cost management. After research on financial performance criterias, market conditions, implementation obstructions, and better sustainability for longer duration, this in-depth research shows the financial aspect of modular construction (MC) as another option for the building of high profile housing. Modernized construction reflects significant economic advantages over traditional ways of construction, with reference to the review of 28 research studies, comprising market reports, industry analysis, and academic papers. The in-depth study reveals a decrease in average cost of 27.9%, decrease in construction timeline by 38.0%, and reductions in material waste of 62.0% in comparison to traditional approaches. These advantages should be evaluated critically considering notable hindrances to implementation, such as financial obstacles, complicated transportation, and restrictions in regulations. Economic viability is evaluated from several sides, like initial capital requirements, risk assessment variables, avenues of market growth, and life-cycle cost performance. Market predictions say that the global industry of modular construction is anticipated to grow from $103 billion in 2024 to $225 billion in 2030, showing high scope for all parties existing in the process of construction. This research aligns to the expanding store of knowledge on building methodologies industrialization through giving a comprehensive economic structure for the viability of modular construction in contexts of high-impacted housing. The outcome confirms that modular construction is a calculated step and economically sustainable solution to the housing shortage in urban areas, while also highlighting important success points and implementation areas required for the best possible project outcomes.
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-30
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.58821

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What is the Economic Viability of Modular Construction in High-density Housing Projects?

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