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Yes it can in the following cases:
1- Start-ups with vulnerable financial model built on high debt ratios versus weak or no equity.
2- Fail to deliver a project with discontinuity of projects pipeline securing enough cash-flow OR lack of a financial model backed-up with securitization to help the company floats at market flips.
3- When a company portfolio doesn't include enough assets Or equity to stabilize its balance sheet.
4- When bankruptcy is used as an exit plan by the shareholders to cut loses Or change market strategy.
5- Overdraft of sales versus construction & delivery can stress the company cash-flow due to high spending on construction versus delayed recognized revenues from handovers & this is likely to happen in countries applying escrow accounts.
6- Abrupt change in developments costs (land cost, hard cost, currency) higher than estimated contingencies.
7- Failure in collection.
I believe real-estate companies can become bankrupt depending on whether or not all their investments and projects are local, multinational, or international.
I say this because the status of real-estate companies depend on the economical situation of the country because their rise and fall go hand-in-hand.
