Standardization and modularization in timber construction bring promising results for UBM Development

UBM Development, one of Europe's leading developers of timber construction projects, reported promising financial results for the first half of 2025, confirming the increased potential of using wood in modern construction. After a challenging start to the year, the company reached break-even in the second quarter, managing to halve its losses compared to the same period last year.

Home sales a key indicator of success

While the European real estate sector continues to face challenges, UBM managed to sell over 200 residential units in the first half of 2025. This represents a doubling compared to the same period in 2024 and a quadrupling compared to the first half of 2023.

"We are seeing an increasing shift towards tangible assets. Gold and equities are close to their all-time highs. It is only a matter of time before real estate follows the same trend," said Thomas G. Winkler, CEO of UBM.

Wood, a central pillar in future strategy

What sets UBM apart from other real estate developers is its strong commitment to timber construction. The company has identified three fundamental pillars for its future strategy:

1. Standardization construction processes
2. Modularization components
3. Consistent use of wood as main construction material

For UBM, these three factors are key elements that will shape the future of the construction industry. With some 2,800 housing units in various stages of development, implementation or commercialization, the company demonstrates that wood can be widely used in modern real estate projects.

A strong financial position supporting innovation

Despite the market challenges, UBM maintains a robust financial position, with liquidity of €167.3 million and an equity ratio of 30.1%. These resources enable the company to continue investing in innovative technologies and methods for timber construction.

UBM's project portfolio for the next 4 years totals approximately €1.9 billion, with over €90% of investment concentrated in Austria and Germany, and almost €60% dedicated to the residential sector.

Future prospects for timber construction

Based on current developments, UBM expects a return to profitability in the second half of 2025. The company is benefiting from the current uncertainties in the market, which have prompted a shift towards investments in tangible assets.

UBM's strategic focus on Green and Smart Buildings in metropolitan regions such as Vienna, Munich, Frankfurt or Prague demonstrates that wood is not just a traditional material, but one that is perfectly adapted to the requirements of modern construction in major European cities.

The Platinum rating received from EcoVadis, as well as the Prime status awarded by ISS ESG, confirms the company's consistent focus on sustainability - an increasingly important issue for investors and home buyers alike.

With its financial results and clear strategy for the future, UBM Development provides a concrete example of how standardization, modularization and consistent use of wood can not only be an ecological choice but also a viable business decision in the construction sector. These innovative approaches to the use of wood open new perspectives for the whole construction industry, demonstrating that natural materials and sustainability can go hand in hand with profitability and scalability.