Insolvency Alert in German Real Estate and Housing Sectors

Concluding a week that has seen daily reports on insolvencies of construction project developers in Germany, the Wirtschaftswoche weekly reports insider estimates that the developers sector might see up to 30% insolvencies during the next 12 months. The main reasons are the high energy costs (caused by greenie moves against Russian natural gas and market speculators—ed.) and over-ambitious greenie regulations that drive the costs of construction up.