Crisis in the German real estate market: projects canceled, orders down.

A fresh report from the Munich-based IFO Institute for Economic Research, released today, indicates that 22.2% of German residential construction companies surveyed reported that some projects had been canceled in October, an increase from September's 21.4%.

07.11.2023 09:11 Comments 1 Photo: Robert Gethel/PAC Serbia

"The situation is getting worse. More and more projects are failing because of high interest rates and increased construction costs," said IFO research head Klaus Wolrabe.

He added that there are fewer new orders and the number of pending orders is simultaneously decreasing. According to the Munich-based institute's website, in October, 48.7% of companies in''Germany has reported a shortage of residential construction orders. A year ago, in October 2022, 18.7% of German residential construction firms were experiencing these problems.

"Nearly half of all residential construction firms are now suffering from a shortage of orders, and this number is growing every month. This situation is threatening some companies.

The residential construction industry in Germany is preparing for hard times, he said, and their expectations for the future are at a very low level. (TANYUG)

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