As of: April 6, 2024, 6:00 p.m
By: Amy Walker
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The construction and real estate industry is groaning under interest rates, construction costs and a massive drop in the number of orders. In the first week of April, over 30 insolvency proceedings were opened in the industry.
Berlin – In the wake of the construction crisis, there is good news for at least some people: the insolvency administrators and courts have their work cut out for them. In the first week of April, over 30 insolvency proceedings were opened in the construction and real estate sector - by far the most frequently affected sector. All areas of the industry are now covered: from project developers and planners to the construction companies themselves right through to property and property managers. In addition to small, relatively unknown companies, there are also well-known players.
List of bankruptcy announcements: Over 30 bankruptcies in the construction industry
As can be seen from the insolvency announcements of the courts in all federal states, insolvency proceedings were opened in the following companies from April 2nd to 4th, 2024:
ARMO Innenausbau GmbH (drywall construction company, Brandenburg)
B & U Immobilienconsult GmbH (real estate management, Hamburg)
domum Mangement GmbH and subsidiaries (rental of furnished apartments, Essen)
Kras-Bau (building renovation and landscaping, Eislingen)
PBM Massivhaus Concepts GmbH (house construction, Leipzig)
ProjektFacaden GmbH (facade construction, Gütersloh)
Schleswig Holstein Immobilien GmbH (property management, broker and rental, Kiel)
Tecklenburg GmbH (house construction, Straelen)
SENKO Bau GmbH (building construction, Bottrop)
BBG Brandenburgische Bauwerkabsiegelung GmbH (renovation and construction planning, Brandenburg)
GM hoch- und Tiefbau GmbH (civil engineering, Flörsheim)
J. Hofmann Bauunternehmen GmbH (new construction and renovation, Hamburg)
Pfeifer Bau GmbH (civil engineering, building renovation, Lengenfeld)
psp karres bau- und plannings GmbH (building renovation and house construction, Ingelsheim)
Südwest Projektbau GmbH (real estate brokerage, Stuttgart)
TREND Immobilien UG & Co. KG (real estate management and rental, Uhldingen-Mühlhofen)
A & A Bau GmbH (dry construction, real estate management, Bremen)
AKM planning, construction and project development company mbH (construction planning and renovation, Lübeck)
AL-Komplett-Bau GmbH (industrial and commercial real estate, NRW)
BAG Bau- und Immobilienvertriebs-GmbH (real estate construction and renovation, Bremen)
BENEFIT Immobiliensanierung GmbH (renovations, Pinneberg)
E&M Projektbau und Technik GmbH (mediation of craft companies, Berlin)
FAKT Immobilien AG (real estate management, Essen)
FIDUS Immobilienverwaltung GmbH (real estate management, Berlin)
HABA Bau- und Verwaltungsgesellschaft mbH (real estate construction, Saxony)
IBR Bau GmbH (real estate construction, Dornburg)
Latumer Baugesellschaft mbH (building and industrial construction, NRW)
Matrix Immobilien GmbH (real estate management, Hamburg)
P12 Immobilien GmbH (real estate management and project development, Pöcking)
Strickler Tiefbau GmbH & Co. KG (civil engineering, Ludwigshafen)
The list is by no means complete - but it clearly shows how urgently the beleaguered construction industry needs a new, positive signal. When the annual Housing Construction Day takes place in Berlin on April 11, 2024, the entire industry will be hoping for good news from politics. So far, little of the many measures announced to revive the construction industry have been implemented.
“Significant burdens in the real estate industry”: Common reasons for the bankruptcies
The reasons for the bankruptcies mentioned are varied in detail, but they all have a common denominator. The construction company Tecklenburg, which filed for bankruptcy in January, sums it up aptly on its website:
“The effects of past and current crises have led to considerable stress in the real estate industry - this is due to the general developments in the construction industry, a lack of planning and reliability on the political side, which deters both institutional and private investors and customers from investing, in addition to the reluctance to invest “Increased interest rates, the increasing price of building materials, broken supply chains and material bottlenecks, a lack of government funding and bureaucratic challenges that drag out construction projects can be cited as the main causes.”
Multi-family houses with apartments are being built in the Wasserstadt development area. © Julian Stratenschulte/Deutsche Presse-Agentur GmbH/dpa
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And the real estate developer Matrix from Hamburg, which has been active in the real estate market for 20 years, also cited the “massively tightened general conditions” as the reason for the bankruptcy in a press release about the bankruptcy filing. “As a result of the disruptive changes on the capital market and the skyrocketing construction costs, we – like many other companies in our industry – have come under increasing pressure in recent months,” explains Martin Schaer, managing partner of the company.
A wave of bankruptcies is rolling through the country
According to the Federal Statistical Office Destatis, the number of regular insolvencies filed in Germany rose by 26.2 percent in January compared to the same month last year. And even in December 2023, it had increased by 12.3 percent compared to December 2022. In February there were 18.1 percent more bankruptcies filed than in February 2023. In addition to the construction industry, retail and companies that work in the health sector are particularly affected.