Munich 2023: Construction industry in crisis - Munich is experiencing a dramatic slump in the construction industry, leading to standstills on construction sites and a falling number of building applications.

Munich 2023: Construction industry in crisis - Munich is experiencing a dramatic slump in the construction industry, leading to standstills on construction sites and a falling number of building applications.

According to a report from www.abendzeitung-muenchen.de, the real estate market in Munich will experience a serious crisis in 2023. The construction pit in Sendling, known as Sendlinger Loch, is filling with water and construction projects are coming to a standstill. Property developers and construction investors are running into difficulties and the number of building applications is falling by 31 percent. The insolvency of Signa Holding, owned by Tyrolean real estate investor René Benko, and other companies is causing additional uncertainty.

The effects on the real estate market in Munich are clearly noticeable. The number of vacant rental apartments is increasing while construction activity is decreasing. Potential buyers are holding back because the costs of energy, building materials and tradesmen's services are rising. This is leading to a slowdown in the construction boom and a decline in investment in new construction projects.

The insolvencies of real estate companies such as Signa Holding also have an impact on the long-term development of the market. Uncertainty about the future of affected projects and companies is leading to further delays and a lack of confidence in the industry.

The crisis in the construction industry also has implicit effects on other sectors such as retail, as projects such as the Nordbad and the former Bayern barracks are not being implemented as planned. The bankruptcies could lead to an increase in unemployment and a decline in economic activity in the region.

Overall, the situation on the Munich real estate market is extremely worrying. Rising costs and uncertainty about the future are leading to a decline in construction activity and serious challenges for the entire industry. It remains to be seen how the situation will develop in the coming months.