A prefabricated modular wall element (20) comprises a precast reinforced concrete wall panel (21) having a front face (24). A plurality of spaced-apart individual slabs (33) of stone or brick are partially embedded in the front face (24) of the panel (21) during casting of the panel (21) and project outwardly of the front face (24) with channels being formed between the slabs (33). The slabs are arranged on the front face (24) such that the front face (24) simulates a wall constructed of stone. A pair of spaced-apart support legs (38) are provided at a bottom (27) of the wall panel (21) for keying into a concrete foundation (42) to support the wall element (1) in an upright.