The Federal Statistical Office reported a 15.8 per cent increase in corporate insolvency applications for March 2026 compared to the same month last year. This development points to ongoing economic pressures. Despite this rise, the Leibniz Institute for Economic Research Halle (IWH) recorded a 15.0 per cent decrease in insolvencies of sole proprietorships and corporations for the subsequent month of May 2026 compared to April 2026, demonstrating an inconsistent trend in insolvency figures.
The transport and storage sector has been particularly affected by the increase in insolvencies. A primary reason for this is likely the significantly increased energy and fuel costs. These cost increases partly result from global market developments and possibly from the consequences of the conflict in Iran, which influences energy markets. Companies in this sector are often only able to pass on these higher costs to their customers to a limited extent or with a delay, which further pressures their margins.
Dr. Christoph Niering, insolvency administrator and Chairman of the Professional Association of Insolvency Administrators and Trustees in Germany (VID), emphasised that insolvencies represent a lagging process. Several months typically pass between the onset of serious economic difficulties and the application for insolvency. He noted that the short period since the recent escalation in the Middle East was not yet sufficient to observe widespread effects on insolvency figures. However, local effects, particularly due to rising fuel costs in the transport industry, might already be noticeable.
Insolvency law fulfils a macroeconomic function by enabling an orderly restructuring of companies that are no longer competitive, or by removing them from the market. This unlocks tied-up resources such as labour and operating assets for new productive purposes. Insolvency is therefore not just an end point of entrepreneurial activity, but offers various avenues for recovery and restructuring when acted upon early and with professional support.
The VID Chairman noted that, in practice, entrepreneurs often seek help only late, when economic problems are already far advanced. With each passing month, the chances of recovery shrink, and the possibilities for successful restructuring diminish. In a persistently challenging economic environment, early crisis detection is therefore crucial. Timely restructuring can not only safeguard jobs but also enable a sustainable future for businesses.
The trend in corporate insolvencies has indirect effects on the real estate market. An increase in insolvencies, particularly in sectors such as transport and storage, can lead to increased availability of commercial properties. This affects logistics spaces as well as office and production buildings. A rising vacancy rate could lead to pressure on rental prices and property values in specific segments. At the same time, insolvency-related sales of corporate properties can open up new investment opportunities for funds specialising in restructuring or for companies planning their expansion. The ability for early crisis detection and recovery is thus also relevant for the stability of the real estate segment.
