Real estate market under pressure: emergency sales of real estate expected, financial experts warn of further bankruptcies

Real estate market under pressure: emergency sales of real estate expected, financial experts warn of further bankruptcies

According to a report by amp.focus.de, Real estate expert Sven Carstensen expects the first emergency sales on the German real estate market in the coming months. Sales prices have fallen by 25 to 30 percent, putting project developers under pressure. Projects cannot be completed due to high interest rates and reduced sales prices, leading to bankruptcies among project developers.

Carstensen predicts that the topic will remain relevant next year. He expects that large property owners could find themselves in an emergency situation and will be forced to sell properties. Some of these transactions are already taking place, but are not publicly visible.

The impact of these fire sales on the real estate market can be serious. The price situation could come under further pressure due to increased sales, and the bankruptcies of project developers could lead to a standstill or decline in construction activity. This in turn could have an impact on the employment situation in the construction industry and unsettle investors.

Developments in the real estate market therefore need to be closely monitored as they could potentially have industry-wide impacts that go beyond the real estate market. They could also lead to changes in the financial and labor markets. It remains to be seen how the situation will develop in the coming months. How amp.focus.de reports, this could be just the beginning of a complex development that will impact the entire industry.