idealista

In an interview, the architects behind dstgroup’s new industrialized construction brand say that industrialization frees up housing.

Portugal is currently mired in a crisis of access to housing. High taxes, delays in building licensing, and a shortage of labour are among the factors preventing the rhythm of house building from keeping pace with high demand. There is no single solution to this problem, which the Government wants to help solve through its ambitious tax package. “Industrialization is an essential part of the solution to the housing crisis,” believe Luís Reis and Maria Luísa Barbosa, architects at ZETHAUS, the dstgroup’s new brand dedicated to industrialized construction. And they explain why in an interview with idealista/news.

In the national context, “industrialized construction is undeniably a crucial tool to reduce the housing deficit efficiently and sustainably, thanks to its ability to produce more houses in less time, while maintaining high-quality construction standards,” the architects explain. They also highlight additional advantages of industrialization, such as production at scale, cost predictability, shorter deadlines and reduced waste, all contributing to cleaner and more sustainable construction.

It was within this framework that the dst group, with its head office in Braga, decided to launch its new ZETHAUS brand, 100% dedicated to industrialized construction, not only for houses, but also student and senior residences, hospitality, offices and even public-space solutions “Industrialization can be a means of liberation (...) towards a fairer, more beautiful, and more accessible architecture within everyone’s reach,” believe Luís Reis and Maria Luísa Barbosa. They stress that there is now “a growing openness” from public bodies towards this type of solution, very much driven by the “urgency of the housing crisis.”  In fact, ZETHAUS has already won its first tender for the construction of a student residence.

The industrialized construction of houses – and other types of buildings – is thus taking important steps forward in Portugal. However, “structural obstacles” still persist, such as “lengthy licensing processes and the lack of clear incentives to encourage migration toward industrialized models”, they point out. That is why, in this interview with idealista/news, the architects at ZETHAUS warn that Portugal must take “decisive steps” for industrialized construction to evolve in Portugal, such as “tax harmonisation, the creation of a legislative framework dedicated to ‘off-site’ construction, greater recognition of certification, adaptation of licensing processes and the modernization of financing rules”.

How do you assess the development of industrialized construction in Portugal and Europe in recent years? Are there any barriers to its growth? If so, what are they?

The development of industrialized construction in Portugal and across Europe has been marked by considerable progress, but it remains insufficient given the challenges we face. Demographic pressure, the urgency of the energy transition and the housing crisis have exposed the weaknesses of the traditional model, which is too slow, unpredictable and incapable of providing the consistency modern society demands.

Despite increased political and media attention, structural barriers persist: lengthy licensing processes and the absence of clear incentives to encourage migration toward industrialized models. If we are to make the necessary leap forward, it will be essential to embrace industrialization not merely as a technological trend but as a strategic goal.

What is new about the ZETHAUS brand? When was it launched in Portugal?

ZETHAUS brings a deeply transformative vision of construction. A new way of building, through an industrial, sustainable and intelligent process that combines flexible, inclusive design with cutting-edge technology and operational excellence. Our aim is not just to improve the way we build, but to open a chapter where architecture, technology and industry come together in a coherent and humanist synthesis. The brand was born from a clear commitment: to offer inclusive, sustainable and high-performance solutions that free cities from the endless cycle of construction sites and return to society a fairer, more efficient and more beautiful ‘habitat’. We seek to improve people’s lives by being 100% committed to the future of the planet.

Launched in Portugal as part of the mobilizing agendas of the PRR [Recovery and Resilience Plan], ZETHAUS seeks to deliver today what Le Corbusier envisioned a century ago: industrialized construction that does not sacrifice identity or aesthetic quality, but rather democratizes them. We believe that industrialization can be a means of liberation — a new alphabet for a fairer, more beautiful, and more accessible architecture within everyone’s reach.

Tell us about the role of architecture in industrialized construction and the importance of the partnership with the British architect Norman Foster.

Architecture is the soul of industrialized construction. That is why the partnership with Norman Foster and the international engineering team from ARUP was therefore decisive. We challenged them to design an industrial system capable of transforming the way we build, introducing precision, clarity and a modular logic enabling quality to be extended to all. The resulting system combines fully finished three-dimensional factory-built modules with two-dimensional components that ensure flexibility and customization. This partnership reinforces a core conviction of ZETHAUS: technological innovation only makes sense when accompanied by a social and cultural vision.

We therefore call it a constructed revolution. We are seeking to reinvent the way buildings are constructed by offering the world an alphabet that enables multiple architectural languages and redefines the boundaries between functionality, sustainability and aesthetics.

Why did dstgroup decide to premier the ZETHAUS brand internationally in Italy (at the Milan Triennale and the Faculty of Architecture in Venice)? How was it received by the community?

ZETHAUS’s international debut in Italy came about naturally and at the invitation of Norman Foster, who believed that ZETHAUS and its mission had to form part of the official programme of the Milan Triennale, dedicated that year to the theme of ‘Inequalities’. Our Living Lab project, featuring the ZETHAUS system, was included the exhibition under the title “Accessible Futures”, Alongside three other socially-oriented projects selected and underway at the Norman Foster Foundation:

“Informal Communities”, Odisha, India;

“Displaced communities”, research project;

Post-conflict reconstruction, Masterplan Kharkiv, Ukraine.

For the showcase, Norman Foster chose to present three fully factory-produced ZETHAUS modules: a student residence room unit and two modules that together form a senior residence or aparthotel room.

Last November, as part of the Milan Triennale and the Venice Biennale, we organised the IN“SHAPPING”IN Symposium, an architectural and technical reflection on industrialized construction, which brought together various multidisciplinary thinkers: architects, academics, visual artists, sociologists, designers, art curators, hospitality operation managers and musicians, open to a heterogeneous audience.

The reception was extremely positive. What impressed the international community most was not only the technical and construction quality of the industrialized modular solutions, but also their ability to combine social vision, industrial rigour and aesthetic ambition within a single system, fully aligned with the principles of the New European Bauhaus.

“ZETHAUS is a construction system capable of meeting different functional programmes: housing, student residences, senior residences, hospitality, multipurpose spaces, offices, and public space solutions.”

What are the main advantages of ZETHAUS houses compared to traditional construction? What is the price difference and average build time?

It is important to note that ZETHAUS is a construction system capable of meeting diverse functional needs: housing, student residences, senior residences, hospitality, multipurpose spaces, offices, and public space solutions All our solutions have clear advantages, starting with their predictability and finishing with their quality.

By moving much of the work that traditionally takes place on site to the factory, we drastically reduce risks related to delays, bad weather, labour shortages and on-site errors. This approach allows us to create more controlled, resilient processes, enhance manufacturing quality, increase worker safety and ensure efficient cost control. Our method guarantees labour savings of between 20% and 60% compared to traditional construction methods. Prices vary depending on the type, complexity of the construction solution and the finishings. However, the great advantage lies in the added value: waste is eliminated, errors are reduced and the customer is offered a solution with consistently high quality. The aim is to build better and with an efficiency that traditional models can no longer guarantee.

“Industrialization makes the process cleaner, more predictable and more responsible toward the planet, aligned with European environmental targets.”

How do these housing solutions contribute to sustainability (in construction and use)? What are the main materials used?

Through the fusion of conscious industrialization and creative expression. Our construction methodology integrates technical rigour with aesthetic sensitivity, harmonizing flexible and inclusive design, dfMa (‘design for manufacturing’), technology, digitalization and operational excellence at each stage of the industrial process. Factory production therefore allows for extremely rigorous materials management, reducing waste and ensuring full traceability. Logistics are optimised, energy consumption is reduced and the environmental footprint is significantly lower. The thermal efficiency of our buildings translates into lower operating costs and greater living comfort.

We primarily use steel, wood and concrete, combining them to suit the nature of each project and leverage their structural, thermal and aesthetic properties. Industrialization makes the process cleaner, more predictable and more responsible toward the planet, fully aligned with European environmental targets. Every decision, every part, every module, every construction solution and every space we design expresses our firm commitment to a future where to inhabit is to exist.

Are there any limitations in the architecture and construction of the buildings due to being factory built?

Factory production does not limit architectural creativity. Indeed, modular manufacturing provides stability, precision and repeatability. These characteristics, combined with the flexible and hybrid capacity of our system, enable buildings to be constructed using three complementary construction methods:

Full 3D volumetric modules;

2D components (‘kit of parts’);

and a combination of both 3D and 2D elements.

This flexibility allows us to adapt to different geometries and configurations, functional typologies and formal design languages. There are natural constraints — mainly logistical, related to transport and maximum module size — but these do not compromise the final architectural expression of the building.

Who are the houses manufactured by ZETHAUS intended for? Do you already have orders?

ZETHAUS solutions are designed for both public and private entities, covering the housing, hospitality, health, education and specialized residence sectors. Our goal is to produce at scale. Only in this way can industrialization fulfil its potential to democratize access to quality and reduce overall costs.

We are currently developing and building the Living Lab — a full-scale laboratory — located on the dstgroup campus, where we test industrialized construction solutions. At the same time, we are drawing up proposals for several public and private tenders, having already won our first tender for a student residence, which will be completed within the next six months.

“In just a few hours, fully finished ‘off-site’ 3D modules become the final structure of a building.”

How does the transport and installation of the buildings on-site work?

The process relies on precise coordination between factory, logistics and on-site. Modules are produced down to the smallest detail — finishings, technical installations, cladding — and transported under controlled conditions to the site. While the factory is manufacturing the building components (3D and/or 2D), the site is being prepared at the same time, involving excavations, foundations, basement works and the installation of structural supports for the industrialized elements. Once the modules are on site, assembly is fast, clean and well-coordinated. In a few hours, fully finished ‘off-site’ 3D modules become the building’s final structure. This construction method reduces noise, waste, site time and urban disruption, helping cities to free themselves from lengthy, intrusive building processes.

How might tax policies and possible legislative changes (VAT reduction, licensing) impact your projects?

The impact would be substantial and span the entire sector. Reducing VAT or creating specific frameworks for industrialized systems, aligned with their more efficient and controlled production methods, could decisively accelerate the adoption of new construction models. Adopting frameworks similar to those already implemented in other industrial sectors — which recognise factory production, traceability and quality control — would make these systems more competitive and accessible.

Beyond taxation, legislative changes in licensing are essential. Current procedures are designed for conventional construction and do not adequately address the specific aspects of industrialized construction. Establishing a dedicated regulatory framework for ‘off-site’ construction, including recognition of certification of construction solutions and methods, plays a decisive role here. Clear technical standards, product, construction method and process certifications, as well as conformity assessment systems, recognised at both the national and European level, are crucial. This would not only facilitate the licensing process — by reducing technical and interpretative ambiguities — but also increase confidence among clients, public entities and the financial sector. A legislative framework that fully recognizes these certifications could avoid redundant inspections, speed up approvals and ensure that industrial quality is directly integrated into regulatory requirements, thereby focusing analysis on urban integration while freeing the technical domain already guaranteed by certification.

Another crucial dimension concerns financing and credit instruments, particularly the legislation regulating interest rates, guarantees and insurance. Industrialized construction greatly benefits from phased payment models and insurance schemes adapted to a process where a significant part of the work takes place in an industrial environment. Specific credit lines or guarantee mechanisms tailored to the lower-risk profile of factory construction would help unlock investment and strengthen the confidence of financial institutions.

Therefore, tax harmonisation, the creation of a dedicated legislative framework for ‘off-site’ construction, the recognition of certifications, the adaptation of licensing processes and the modernization of financing rules are decisive steps needed to ensure industrialized construction develops in Portugal, and beyond, with the efficiency, safety and scale demanded by the market.

“We have felt a growing openness, driven by the urgency of the housing crisis and the need for rapid, sustainable urban regeneration”.

Have public and institutional bodies been receptive? Do you already have concrete projects?

We have felt a growing openness, driven by the urgency of the housing crisis and the need for rapid, sustainable urban regeneration. Many public bodies are beginning to acknowledge that traditional construction methods are no longer keeping pace with current needs. We are involved in multiple projects, including tenders for student residences, social infrastructure and public housing projects. Our first successful tender confirms that the market is ready for industrialized solutions that combine architectural quality, sustainability and speed.

To what extent can ZETHAUS’s 100% factory-built houses help to address the housing crisis in Portugal and Europe? Does legislation need to change?

Industrialization is an essential part of the solution to the housing crisis. Only an industrial model based on continuous, certified production at scale can ensure predictable costs, reliable deadlines and consistent quality. According to INE [Statistics Portugal] data, in the short and medium term Portugal would need to build at least 150,000 to 200,000 additional homes to meet current market demand and identified housing shortages. The pace of recent new construction remains far below this need. In 2024, for example, only 28,494 new homes were completed nationwide, which is clearly insufficient.

Given these figures, both nationally and more intensely at the European level, industrialized construction is undeniably a crucial tool to efficiently and sustainably reduce the housing deficit, producing more homes in less time while ensuring high construction standards. Without this change, we will remain stuck in an outdated model that cannot meet contemporary challenges.

“Industrialization is the path to democratize architectural excellence and deliver inclusive solutions that respond to social and territorial inequalities”.

“More than a construction system, ZETHAUS symbolises a strategic turning point for the construction sector in Portugal and Europe.” How? And why?

ZETHAUS represents a strategic turning point because it introduces not just a new construction system, but also a new way of thinking and doing architecture. It is an ecosystem where technology, design, digitalization, industry and environmental responsibility come together through a future oriented approach.

We advocate for an industrial re-evolution that restores precision, predictability and beauty to the act of building. This allows most of the construction to be completed in a factory environment, ensuring accurate budgeting, reducing uncertainties, and achieving higher quality with less human effort. At the same time, we value human labour: we provide better conditions in a controlled environment, with safety, efficiency and comfort, creating a space where female participation is encouraged and integrated, breaking down gender stereotypes common in traditional construction work.

We believe that industrialization is the path to democratize architectural excellence and deliver inclusive solutions that respond to social and territorial inequalities. ZETHAUS has been born from this ideal: that the future of construction requires not only efficiency, but also poetry; not only shelter, but dignity; and not just labour, but recognition and inclusion of all those who build our future.