Portugal’s Zethaus Bets on Modular Construction to Tackle Europe’s Housing Crisis

Braga, Portugal – November 6, 2025 – As Europe grapples with a growing housing shortage and escalating affordability concerns, Portuguese construction and engineering group dstgroup is making a significant push to promote industrialized construction. Through its brand, Zethaus, the company is launching a series of symposia in Italy – starting in Milan today and continuing in Venice on November 19th – aimed at reimagining how we build and inhabit the world.

The events, themed ‘ININ’, will gather leading architects, artists, and thinkers to explore the potential of modular and factory-based construction techniques. The move signals Zethaus’s ambition to become a key player in the rapidly evolving European construction landscape – and a potential disruptor of traditional building methods.

Addressing a Pan-European Challenge

The timing of Zethaus’s initiative is crucial. Across Europe, demand for housing consistently outstrips supply. Italy, in particular, faces a substantial deficit of approximately 700,000 units, compounded by rising property prices in major urban centers like Milan and Venice. This crisis is driven by factors including population growth, urbanization, and limited land availability.

“The current model of housing is exhausted,” explains a dstgroup representative, echoing the company's stated goal of challenging existing norms. “Cities are no longer effectively serving the needs of their communities. We need to find new ways to deliver affordable, sustainable, and inclusive housing solutions.”

Industrialized construction, also known as modular or prefabricated construction, offers a potential path forward. By shifting much of the building process from on-site to a factory setting, companies like Zethaus aim to reduce construction times, lower costs, and minimize environmental impact. The benefits are compelling: faster project delivery, reduced waste, improved quality control, and greater design flexibility.

A Growing Market, But Scaling Remains a Challenge

The global modular construction market is experiencing significant growth. Valued at approximately $117.2 billion in 2023, it’s projected to reach $178.5 billion by 2030, according to industry reports. This growth is driven by increasing demand for sustainable and affordable housing, coupled with advancements in manufacturing technology.

However, scaling up modular construction to meet widespread demand presents challenges. Concerns remain about supply chain disruptions, transportation logistics, and the need for skilled labor capable of working with these innovative techniques. Moreover, overcoming regulatory hurdles and gaining acceptance from traditional construction stakeholders can be a significant undertaking.

“The potential is huge, but it's not a silver bullet,” comments an industry analyst specializing in modular construction. “Successfully implementing industrialized construction requires a holistic approach, encompassing design, manufacturing, logistics, and regulatory frameworks.”

Zethaus's Strategy: Thought Leadership and Innovation
The Zethaus symposia represent a strategic move to position the company as a thought leader and innovator in the field. By bringing together leading experts and fostering dialogue around the future of building, Zethaus aims to shape the conversation and influence industry standards. The events will also serve as a platform to showcase Zethaus’s modular designs and demonstrate the company’s commitment to sustainable and inclusive construction practices.

“We want to stimulate a discussion about how we can build better cities and communities,” explains another dstgroup representative. “This is not just about building houses; it's about creating spaces that enhance the quality of life for everyone.”

The Milan symposium, held at the Triennale, will feature Zethaus modules within Norman Foster’s ‘Inequalities’ exhibition. This collaboration provides a powerful platform to showcase Zethaus’s designs to a wider audience and highlight the potential of modular construction to address social and economic inequalities. The Venice event, hosted at IUAV University, will focus on the artistic and experiential dimensions of building, exploring how design can foster a sense of community and belonging.

Beyond Housing: Sustainability and the Circular Economy

Zethaus’s ambitions extend beyond simply addressing the housing crisis. The company is also committed to promoting sustainable construction practices and embracing the principles of the circular economy. Modular construction inherently reduces waste and minimizes environmental impact by optimizing material usage and streamlining the building process. Zethaus is exploring innovative materials and construction techniques to further reduce its carbon footprint and promote resource efficiency.

“We believe that sustainable construction is not just an environmental imperative; it’s also a business opportunity,” states a dstgroup spokesperson. “By embracing circular economy principles, we can create a more resilient and sustainable built environment.”

The success of Zethaus’s initiative will depend on its ability to overcome the challenges inherent in scaling up modular construction, navigate regulatory hurdles, and gain acceptance from key stakeholders. However, with its commitment to innovation, sustainability, and social responsibility, Zethaus is well-positioned to become a leading force in the future of building. The symposia in Milan and Venice represent a crucial step in this journey – and a potential catalyst for a more sustainable and equitable built environment across Europe.