The current economic situation is leaving clear marks in the federal capital. According to an estimate by the creditor protection association KSV1870, around 650 company insolvencies are expected in Vienna in the first quarter of 2025.

Rising Insolvencies in Vienna Forecasted by Year-End

This represents a significant increase, as the number of insolvencies in Austria has risen by three percent to around 1,741 compared to the same period last year. Particularly alarming: In Vienna, the increase is almost six percent, indicating a worsening situation.

The forecasts are anything but optimistic. The KSV1870 assumes that the number of insolvencies in Vienna will rise to about 2,650 by the end of the year. This would mean an increase of around 150 insolvencies compared to the previous year. Experts warn that Vienna could thus establish itself as a hotspot for company insolvencies, as reported by ORF.

Increase in Liabilities by 450 Percent in 2024

2024 was also a record year for company insolvencies in Vienna. The liabilities, i.e., the debts of the insolvent companies, have reached almost 1.7 billion euros, which corresponds to an alarming increase of around 450 percent compared to the previous year. A significant factor for this increase is the numerous follow-up insolvencies within the "SIGNA Group." However, it is important to note that other real estate developers are also active in Vienna and the affected properties are often located in other federal states as well.

Further analysis shows that three sectors – trade, construction, and gastronomy – together account for almost 45 percent of all insolvencies in Austria. These sectors are therefore the main drivers of the rising insolvency numbers.

(Red)

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