The Sendlinger Loch in Munich: a new era for the construction project!

The Sendlinger Loch in Munich: a new era for the construction project!

After years of standstill, the so -called “Sendlinger Loch” in Munich has finally found a buyer. As the Immobilien Zeitung reported the property in Alramstrasse to the Starnberg project developer Ehret + Klein. Originally, the previous investor, the Munich company M-Concept, planned to build 128 luxury apartments here, but financial problems thwarted the project.

The sale now seems to be a ray of hope after over five years of standstill. According to the Süddeutsche Zeitung , the construction pit is now facing possible progress . M-Concept had to cancel the construction project for financial reasons and recently offered the property on Alramstrasse 14 for sale. The deal is not yet perfect, but a degree will be expected in the coming weeks. Both sides are back with comments and it remains unclear whether the new investors will continue the plans of M-Concept or will tackle complete new planning.

background and challenges

Yesterday's developments throw a light on the challenges in front of which the real estate market in Munich is facing. M-Concept paid a proud 73 million euros for the property in 2017 and planned to sell the apartments for an average of 17,000 euros per square meter. In view of the current real estate crisis, this price could be questionable. In the meantime, M-Concept has come into trouble, and a big project in Pasing had to register bankruptcy.

To secure the excavation pit, work was held recently because the "short -term tabs" had expired. An originally set crane also had to be removed again, which illustrates the difficult situation of the construction project.

Munich real estate market in the upswing?

Despite these challenges, there is hope for the Munich real estate market. According to a report by JLL , the city shows signs of a recovery . In the first three quarters of 2024, a transaction volume of 2.69 billion euros was recorded. The increasing international attention and the continuous growth of the metropolis offer both opportunities and risks. The current market development gives rise to hope for a comeback of the construction economy.

It remains to be seen how the situation around the Sendlinger Loch will develop and what plans the new investors forge. One thing is certain: Munich remains a hotly competitive market in which demand is high and the challenges are numerous. There is definitely something!