A modular building includes at least one outer wall that includes at least first and second panels aligned end to end at a panel joint. Each panel includes first planks forming a part of the outer wall of the building and second planks forming a first decorative wall fixed to the outer wall. The decorative wall extends substantially perpendicular to the outer wall and terminates beyond the first planks on at least one side of the panel. The space between the first decorative wall of the panel and an adjacent decorative wall of a second panel accommodates a shelving unit or a joint cover strip that covers the panel joint.