11,139.46 TRY BIST 100 BIST 100
33.06 USD USD USD
35.99 EUR EUR EUR
4.57 CNY CNY CNY
0.13 CNY CNY/EUR CNY/EUR
42.13 TRY Interest Interest
84.64 USD Fossil Oil Fossil Oil
29.51 USD Silver Silver
4.27 USD Copper Copper
104.10 USD Iron Ore Iron Ore
382.00 USD Shipbreaking Scrap Shipbreaking Scrap
2,581.56 TRY Gold (gr) Gold (gr)

Construction crisis in Germany: Industry turns to government for help

As the crisis in Germany's construction industry deepens, industry representatives are calling on the German government to help.

Construction crisis in Germany: Industry turns to government for help

According to the Financial Times, the construction sector, which is struggling to cope with these unfavorable conditions, is looking to the German government for support. Moritz Schularick, President of the Kiel Institute for the World Economy, said: "After the property boom of the last 10-15 years, we have reached a critical point. The old financing models are now unsustainable and we are in a period where a new property developer goes bankrupt every day".

Among the companies that have filed for bankruptcy in recent weeks are Düsseldorf-based Gerch, Centrum Group, Development Partner, Euroboden from Munich and Project Immobilien Gruppe from Nuremberg.

At the same time, companies such as Vonovia and Aroundtown, which are large property owners, have seen large falls in the value of their property portfolios.

"Interest rates have risen sharply and many projects are no longer viable. Demand for housing has also completely collapsed," says Mr Fuest.

Experts predict the situation could get even worse. "Those with the most debt are the most vulnerable and I expect the number of bankruptcies in the market to increase," said Dirk Salewski, chairman of BFW, the German Association of Independent Real Estate and Housing Companies.

Comments

No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In
SteelRadar Insight - Sayı 1 (Haziran 2024)

Most read news

Weekly situation analysis of the European steel market!

Thursday, July 11, 2024

Germany steel plate prices decreased sharply!

Wednesday, July 10, 2024

The results of the Fortune Türkiye 500 have been announced: Many iron and steel companies have been included in the list

Wednesday, July 10, 2024

H2 Green Steel receives approval for €265 million grant from Sweden

Wednesday, July 3, 2024

Scrap prices are increasing in Europe!

Wednesday, July 3, 2024
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now