Suche
Mein Konto
The Sendlinger Loch in Munich: A new era for the construction project!
The Sendlinger Loch in Munich was sold. Buyer Ehret + Klein plans developments after previous investor's financial difficulties.
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. Like the real estate newspaper reported, the property on Alramstrasse was sold to the Starnberg project developer Ehret + Klein. The previous investor, the Munich company M-Concept, originally planned to build 128 luxury apartments here, but financial problems put a stop to the plan.
The sale now appears to be a bright spot after more than five years of standstill. According to the Süddeutsche Zeitung the excavation pit is now facing possible progress. M-Concept had to cancel the construction project for financial reasons and recently put the property at Alramstrasse 14 up for sale. Although the deal is not yet perfect, a conclusion is expected in the coming weeks. Both sides are reticent to comment, and it remains unclear whether the new investors will continue to pursue M-Concept's plans or undertake a complete re-planning.
Background and challenges
Yesterday's developments shed light on the challenges facing the real estate market in Munich. M-Concept paid an impressive 73 million euros for the property in 2017 and planned to sell the apartments for an average of 17,000 euros per square meter. However, given the current real estate crisis, this price could be questionable. In the meantime, M-Concept has run into difficulties and a large project in Pasing had to file for bankruptcy.
Work recently took place to secure the excavation pit because the “short-term anchors” had expired. A crane that was originally erected also had to be dismantled again, which illustrates the difficult situation of the construction project.
Munich's real estate market on the upswing?
Despite these challenges, there is hope for the Munich real estate market. According to a report from JLL the city is showing signs of 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 reason to hope that the construction industry will make a comeback.
It remains to be seen how the situation around the Sendlinger Loch will develop and what plans the new investors will make. One thing is certain: Munich remains a hotly contested market where demand is high and the challenges are numerous. There is definitely something there!