Luxury Modular Lodges: The Fast-Growing Market Redefining Leisure Real Estate
The UK leisure accommodation sector is undergoing a profound transformation—driven by design-led, energy-efficient, modular construction methods. Structural Insulated Panel (SIP) lodges are at the forefront of this shift, combining fast deployment with superior aesthetics and sustainable performance. They’re not just replacing static caravans—they’re redefining what a holiday lodge can be.
Among the players in this space is Outerspace Group, an innovator using SIP technology to upgrade and reimagine holiday parks across the UK. They are an example of where the industry is heading: elevated design, efficient build systems, and strong investor returns. These aren’t rudimentary cabins—they’re fully featured luxury units with contemporary layouts, spa-style bathrooms, expansive glazing, and features like infinity-edge hot tubs, rooftop terraces, and multi-section configurations.
A Market Scaling Fast: What Investors Need to Know
The appetite for modular leisure accommodation is being driven by long-term shifts in consumer behaviour, construction innovation, and capital markets. Investors are watching this space closely—for good reason.
Key Market Data:
- The UK holiday park market is now valued at £9.3 billion, supporting over 170,000 full-time jobs (UKCCA, 2023).
- Domestic tourism has rebounded strongly post-COVID, with 75% of UK adults planning a UK staycation in 2024, up from 62% in 2022 (VisitBritain).
- Occupancy rates for high-end lodge parks regularly exceed 85% in peak season, and more investors are entering the space as alternatives to buy-to-let.
- The modular construction market in Europe is growing at 11.5% CAGR, forecast to reach $67.5 billion by 2028 (Fortune Business Insights).
- The global SIP market alone is projected to exceed $600 million by 2030, driven by demand for offsite and sustainable builds (Precedence Research, 2024).
- Lodge-specific returns are increasingly attractive: Gross rental yields can exceed 12–15% in upgraded parks with quality infrastructure and branding.
Why Investors Are Moving In
The modular lodge market offers a rare convergence of high growth, strong cash flow, and asset backing. Unlike traditional residential property, SIP-based holiday lodges benefit from:
1. Speed to Market
Modular construction allows delivery and installation in under two weeks, cutting time-to-revenue dramatically. Entire parks can be upgraded in phases, preserving operational income while value is added.
2. High ARPU (Average Revenue Per Unit)
Compared to traditional static caravans, SIP lodges command 20–60% higher nightly rates, especially when combined with premium amenities and contemporary interiors.
3. Environmental Credentials
SIP lodges offer superior thermal performance, low waste, and low operational carbon—all aligning with ESG mandates that institutional investors increasingly demand.
4. Planning and Operational Upside
Redeveloping legacy parks can unlock site value and improve density. Modernised parks also attract a higher-spending customer base and new revenue lines (wellness, events, F&B).
5. Exit Optionality
Refurbished or newly developed parks with income-producing lodges are attractive to REITs, funds, and family offices. There’s a growing secondary market for turnkey leisure assets with operational track records.
SIP Lodge Market – Competitor Matrix (UK Focused)
| Company | Construction Type | Speed to Deploy | Design Aesthetic | ESG / Sustainability | Operational Integration | Target Market | Notable Projects / Clients |
|---|---|---|---|---|---|---|---|
| Outerspace Group | SIP-based modular lodges | 2–4 weeks | High-end / contemporary | Strong | Full vertical integration | Legacy park transformation, premium rural resorts | Rewilding Britain, UK holiday park operators |
| Landal GreenParks UK | Hybrid timber frame / SIP | 8–12 weeks | Scandinavian-inspired | Moderate–strong | Operates own parks | Large-scale nature-based resorts | Partnerships with Awaze, Hoseasons |
| Habitat First Group | Traditional & SIP hybrid | 12–20 weeks | Architectural / luxury | Strong | Full integration | High-net-worth buyers, luxury second homes | Lower Mill Estate, Silverlake |
| Willerby Lodges | Static lodge (not SIP) | 8–12 weeks | Mid-market traditional | Moderate | Manufacture only | Mass-market park operators | Center Parcs, Haven, Parkdean Resorts |
| Victory Leisure Homes | Static lodge (not SIP) | 8–14 weeks | Traditional / coastal | Moderate | Manufacture only | Broad holiday park market | Park Holidays UK, Shorefield Holidays |
| Lodgequest | Modular SIP + timber mix | 6–10 weeks | Rustic / modern hybrid | Moderate | Partial (design + build) | Owner-operators, boutique parks | Custom lodge developments in UK countryside |
| Homelodge | Modular timber frame | 10–14 weeks | Office/resi hybrid look | Light–moderate | Manufacture only | Education, garden offices, care homes | Limited holiday-focused offerings |
The Bigger Picture
This isn’t just a construction trend—it’s a shift in how we experience leisure and how investors think about operational real estate. The UK is home to thousands of underutilised parks and rural land parcels with potential. With demand rising for UK-based holidays and flexible second-home options, the runway for SIP-based lodges is long and accelerating.
Whether it’s coastal regeneration, forest escapes, or lakeside wellness retreats, SIP-based lodges are enabling a new tier of resort development—faster to market, higher yielding, and more aligned with what 21st-century travellers (and investors) expect.
The modular revolution in leisure has only just begun. For forward-thinking investors, the opportunity is now.
