Germany’s property developers are at greatest risk of insolvency

While investors’ concerns during the current real estate crisis are focused on landlords, experience shows that developers are in immediate danger. Construction companies Quelle building and Gerch Group became the first signs of the market, organizations that declared bankruptcy.

Developers are struggling with rising construction costs, rising interest rates and falling prices. Companies around the world are facing similar challenges. In Australia, Porter Davis is among the housebuilders that have gone into liquidation this year due to soaring costs and falling demand. In Sweden, rising bankruptcies are being driven by a construction slump, while in Finland, housing construction could fall to levels not seen since the 1940s.

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