Signa earthquake in Munich: construction stop at the Alte Akademie and consequences for the real estate industry - a financial expert explains.

Signa earthquake in Munich: construction stop at the Alte Akademie and consequences for the real estate industry - a financial expert explains.

According to a report from www.abendzeitung-muenchen.de, the Signa Group in Munich has fallen into a serious crisis. Large construction projects were stopped, including the prestigious “Alte Akademie” property. Mayor Dieter Reiter (SPD) has frozen the planning work for the Signa projects and is calling on the Free State of Bavaria to find a solution for the leasehold as quickly as possible. The insolvency of the Galeria-Karstadt-Kaufhof department stores is making the situation even worse.

The impact of these developments on the real estate market and the financial sector is significant. The insolvency of the Galeria-Karstadt-Kaufhof department stores and the cessation of construction work on the Alte Akademie are expected to lead to a decline in investments in the real estate industry. This can lead to falling property prices, especially in exposed locations in Munich.

The delay and cancellation of construction projects is having a negative impact on employment in the construction industry as jobs are at risk. In addition, uncertainty in the financial industry will lead to caution in lending and reluctance to invest.

Overall, the developments at the Signa Group will pose major challenges for the real estate and financial markets in Munich and will contribute to the city's development and economy being negatively affected. It is important that responsible investors are found to restore confidence in the real estate market and the financial industry.