Portugal is currently immersed in a housing access crisis. High taxes, delays in licensing processes and a shortage of labour are some of the factors slowing down house construction at the pace needed to meet high demand. And there is no single solution to this problem, which the Government aims to help address through its ambitious tax package. “Industrialisation is an unavoidable part of the solution to the housing crisis,” believe Luís Reis and Maria Luísa Barbosa, architects at ZETHAUS, the new dstgroup brand dedicated to industrialised construction. They explain why in an interview with idealista/news.
In the national context, “industrialised construction is undeniably a crucial tool to reduce the housing deficit in an efficient and sustainable way, due to its ability to deliver more homes in less time, while ensuring high levels of construction quality,” the architects explain. They also highlight other advantages of housing industrialisation, such as scale production, cost predictability, shorter deadlines and waste reduction, promoting cleaner and more sustainable works.
“Industrialisation can be a means of liberation (…) towards a fairer, more beautiful architecture that is accessible to all”
It was within this context that the dst group, headquartered in Braga, decided to launch its new brand ZETHAUS, 100% dedicated to industrialised construction — not only housing, but also student and senior residences, hospitality, offices and even solutions for public spaces. “Industrialisation can be a means of liberation (…) towards a fairer, more beautiful architecture that is accessible to all,” believe Luís Reis and Maria Luísa Barbosa, highlighting that today there is “a growing openness” on the part of public entities towards this type of solution, largely driven by the “urgency of the housing crisis”. In fact, ZETHAUS has already won its first tender for a student residence.
Industrialised construction of housing — and other types of buildings — is therefore taking important steps forward in Portugal. However, “structural barriers” still persist, such as the “slowness of licensing processes and the lack of clear incentives to encourage migration to industrialised models,” they point out. This is why, in this interview with idealista/news, the architects at ZETHAUS warn that “decisive steps” are needed for industrialised construction to evolve in Portugal, such as “tax harmonisation, the creation of a dedicated legislative framework for off-site construction, the valorisation of certifications, the adaptation of licensing processes and the modernisation of financing rules”.
Prefabricated houses
Student residence module designed by Norman Foster
Credits: ZETHAUS | dstgroup
How do you assess the evolution of industrialised construction in Portugal and Europe in recent years? Are there barriers to its growth? If so, which ones?
The evolution of industrialised construction in Portugal and Europe has been marked by significant progress, but still insufficient given the challenges we face. Demographic pressure, the urgency of the energy transition and the housing crisis have exposed the fragilities of the traditional model, which is too slow, subject to unpredictability and incapable of offering the level of predictability that contemporary society demands.
Despite increased political and media attention, structural barriers remain: the slowness of licensing processes and the lack of clear incentives to encourage migration to industrialised models. To make the necessary leap forward, it will be essential to assume industrialisation as a strategic objective, and not merely as a technological trend.
What does the ZETHAUS brand bring that is new? 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 and inclusive design with cutting-edge technology and operational excellence. We do not merely seek to improve the way construction is done, but to inaugurate a new chapter where architecture, technology and industry come together in a coherent and humanistic synthesis. The brand is 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 more just, efficient and beautiful habitat. We aim to improve people’s lives, 100% committed to the future of the planet.
Launched in Portugal within the context of the PRR [Recovery and Resilience Plan] mobilising agendas, ZETHAUS aims to materialise today what Le Corbusier envisioned a century ago: an industrial construction that does not sacrifice identity or aesthetic quality, but rather democratises them. We believe that industrialisation can be a means of liberation — a new alphabet for a fairer, more beautiful architecture that is accessible to all.
“Architecture is the soul of industrialised construction. The partnership with Norman Foster and the international engineering team at ARUP was therefore decisive”
Tell us about the role of architecture in industrialised construction and the importance of the partnership with British architect Norman Foster.
Architecture is the soul of industrialised construction. The partnership with Norman Foster and the international engineering team at ARUP was therefore decisive. We challenged them to conceive an industrial system capable of transforming the way we build, introducing rigour, clarity and a modular logic that allows quality to be extended to all. The resulting system combines fully finished three-dimensional modules produced in factory with two-dimensional components that ensure flexibility and customisation. This partnership reinforces a central conviction at ZETHAUS: technological innovation only makes sense when accompanied by a cultural and social vision.
We therefore speak of a built revolution. We seek 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.
Housing shortage in Portugal
Student residence
Credits: ZETHAUS | dstgroup
Why did dstgroup decide to debut the ZETHAUS brand internationally in Italy (at the Milan Triennale and the Venice School of Architecture)? 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 purpose needed to be part of the official agenda of the Milan Triennale, which this year was dedicated to the theme “Inequalities”. Thus, our Living Lab project with the ZETHAUS system was included in the exhibition under the title “Affordable Futures”, in dialogue with three other socially driven projects selected and underway at the Norman Foster Foundation:
  • “Informal Communities”, Odisha, India;
  • “Displaced Communities”, research project;
  • Post-conflict reconstruction, Masterplan Kharkiv, Ukraine.
For this purpose, Norman Foster chose to present three ZETHAUS modules produced entirely in factory: one student residence bedroom module and two modules which, combined, form a senior residence or aparthotel bedroom.
Last November, we organised — still within the scope of the Milan Triennale and also the Venice Biennale — the symposium IN«SHAPPING»IN, a forum for architectural and technical reflection on industrialised construction. It brought together multidisciplinary perspectives: architects, academics, visual artists, sociologists, designers, art curators, hotel operations managers and musicians, and was open to a diverse audience.
The reception was extremely positive. What most surprised the international community was not only the technical and constructive quality of the industrialised modular solutions, but the ability to articulate social vision, industrial rigour and aesthetic ambition within a single system, aligned with the principles of the New European Bauhaus.
“ZETHAUS is a construction system capable of responding to different functional programmes: housing, student residences, senior residences, hospitality, multi-use spaces, offices and construction solutions for public spaces”
What are the main advantages of ZETHAUS houses compared to traditional construction? What is the price difference and the average construction time?
It is important to highlight that ZETHAUS is a construction system designed to respond to different functional programmes: housing, student residences, senior residences, hospitality, multi-use spaces, offices and construction solutions for public spaces. All our solutions offer advantages that begin with predictability and end with quality.
By shifting much of the work that traditionally takes place on site into the factory, we drastically reduce the risks associated with delays, weather conditions, labour shortages and execution errors. This approach allows us to design processes that are immune to unpredictability, raise manufacturing quality, increase worker safety and ensure efficient cost control. We guarantee construction time reductions of between 20% and 60% compared to traditional methods. Prices vary depending on typology, complexity of the construction solution and finishes. The main advantage lies in the added value: waste is eliminated, errors are reduced and clients are offered a solution with consistent quality. The goal is to build better and with an efficiency that the traditional model can no longer guarantee.
“Industrialisation makes the process cleaner, more predictable and more responsible towards the planet, aligning with European environmental goals”
To what extent do these housing solutions contribute to sustainability (in construction and use)? What are the main materials used?
Through the fusion of conscious industrialisation and creative expression. Our construction methodology integrates technical rigour with aesthetic sensitivity, harmonising flexible and inclusive design, dfMA (design for manufacturing), technology, digitalisation and operational excellence at every stage of the industrial process. Factory production allows for extremely rigorous material management, reducing waste and ensuring full traceability. Logistics are optimised, energy consumption is lower and the environmental footprint is significantly reduced. The thermal efficiency of buildings leads to lower operating costs and greater living comfort.
We mainly use steel, wood and concrete, combining them in a way that respects the nature of each project and takes advantage of their structural, thermal and aesthetic properties. Industrialisation makes the process cleaner, more predictable and more responsible towards the planet, aligning with European environmental goals. Every decision, every piece, every module, every construction solution and every space we design expresses our firm commitment to a future where inhabiting is existing.
House construction in factory
Credits: ZETHAUS | dstgroup
Are there limitations on architecture and building design because production takes place in a factory?
Factory production does not limit architectural creativity. Factory production and modularity logics offer stability, precision and repeatability. These characteristics, combined with the flexible and hybrid capacity of our system, allow buildings to be constructed using three construction methods:
  • 100% 3D volumetric elements;
  • 2D elements (“kit of parts”);
  • and a combination of both 3D and 2D elements.
This flexibility ensures adaptation to different geometries and configurations, functional typologies and formal languages. There are natural constraints — mainly logistical, related to transport and maximum dimensions — but these do not condition the final expression of the building.
Who are ZETHAUS factory-built houses aimed at? Do you already have orders?
ZETHAUS solutions are aimed at both public and private entities, covering housing, hospitality, healthcare, education and specialised residences. Our goal is to produce at scale. Only then can industrialisation fulfil its potential to democratise 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 industrialised construction solutions. In parallel, we are preparing proposals for several public and private tenders and have 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 are transformed into the final structure of a building”
How does the transport and installation of factory-built buildings work on site?
The process is based on precise coordination between factory, logistics and site. Modules are produced down to the smallest detail — finishes, technical installations, cladding — and transported under controlled conditions to the site. While the construction elements (3D and/or 2D) are being produced in the factory, site preparation works are carried out, such as excavation, foundations, basement construction and execution of the support elements that will receive the industrialised components. Once the components arrive on site, assembly is fast, clean and coordinated. In just a few hours, fully finished off-site 3D modules become the final structure of a building. This construction method reduces noise, waste, on-site time and urban disruption, allowing cities to free themselves from lengthy and intrusive processes.
Modular houses
Credits: ZETHAUS | dstgroup
How can tax issues and possible legislative changes (VAT reduction, licensing) impact your projects?
The impact is substantial and affects the entire sector. VAT reduction or the creation of specific regimes for industrialised systems, aligned with their more efficient and controlled production method, could decisively accelerate the adoption of new construction models. Regimes similar to those already existing in other industrial sectors — recognising 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 accommodate the specificities of industrialised construction. Creating a dedicated framework for off-site construction, recognising the certification of solutions and construction methodologies, plays a decisive role. Clear technical standards, product certifications, construction and process methods, as well as nationally and European-recognised conformity assessment systems are crucial. This not only facilitates licensing — reducing technical and interpretative doubts — but also increases confidence among clients, public entities and the financial sector. A legislative structure that fully recognises these certifications can avoid redundant inspections, speed up approvals and ensure that industrial quality is directly integrated into regulatory requirements, focusing analyses on urban planning aspects and freeing up the technical domain, which is already guaranteed.
Another crucial dimension concerns financing and credit instruments, namely legislation regulating interest rates, guarantees and insurance. Industrialised construction strongly benefits from phased payment models and insurance tailored to a process where much of the work takes place in an industrial environment. Specific credit lines or guarantee mechanisms adapted to the reduced risk of factory construction would help unlock investment and reinforce confidence among financing entities.
Therefore, tax harmonisation, the creation of a dedicated off-site legislative framework, the valorisation of certifications, adaptation of licensing processes and modernisation of financing rules are decisive steps to enable industrialised construction to evolve in Portugal and beyond, with the efficiency, safety and scale that the market demands.
“We have felt a growing openness, driven by the urgency of the housing crisis and the need for fast and sustainable urban regeneration”
Has openness from public and institutional entities been positive? Do you already have concrete projects?
We have felt a growing openness, driven by the urgency of the housing crisis and the need for fast and sustainable urban regeneration. Many public entities are beginning to recognise that traditional methods no longer meet the pace of needs. We are involved in several processes, namely tenders for student residences, social facilities and public housing projects. Winning the first tender confirms that the market is ready for industrialised solutions that combine architectural quality, sustainability and speed.
Prefabricated housing architecture
Credits: ZETHAUS | dstgroup
To what extent can ZETHAUS’s 100% factory-developed houses help resolve the housing crisis in Portugal and Europe? Is legislative change needed?
Industrialisation is an unavoidable part of the solution to the housing crisis. Only an industrial model, based on continuous, certified and scaled production, can ensure predictable costs, reliable deadlines and consistent quality. Based on data from INE [National Statistics Institute], in the short and medium term Portugal would need to build at least around 150,000 to 200,000 additional homes to address identified shortages and accommodate current market pressure. Recent new construction figures fall far short of compensating for the deficit. In 2024, for example, around 28,494 homes were completed nationwide — manifestly insufficient.
Given these figures, in a national context — and even more so at European level — industrialised construction is undeniably a crucial tool to reduce the housing deficit in an efficient and sustainable way, by enabling more homes to be produced in less time while ensuring construction quality. Without this change, we will remain trapped in a paradigm that no longer responds to contemporary challenges.
“Industrialisation is the path to democratising architectural excellence and offering inclusive solutions that respond to social and territorial inequalities”
“More than a construction system, ZETHAUS symbolises a strategic shift in the construction sector in Portugal and Europe.” How so? And why?
ZETHAUS represents a strategic shift because it introduces not only a new construction system, but also a new way of thinking and making architecture. It is an ecosystem where technology, design, digitalisation, industry and environmental responsibility are articulated within a future-oriented logic.
We advocate an industrial re-evolution that restores rigour, predictability and beauty to the act of building, enabling much of construction to take place in factory environments, ensuring fixed costs, reducing unpredictability and elevating quality with less human effort. At the same time, we value labour: we provide better conditions in controlled environments, with safety, efficiency and comfort, creating a space where female participation is encouraged and integrated, breaking gender stereotypes common in traditional construction sites.
We believe that industrialisation is the path to democratising architectural excellence and offering inclusive solutions that respond to social and territorial inequalities. ZETHAUS is born from this ideal: that the future of construction requires not only efficiency, but also poetry; not only shelter, but dignity; and not only work, but the valorisation and inclusion of all those who build our future.