Behavior in case of imminent delay by the property developer

And since it is already foreseeable that after the summer holidays people will not be rushing to the developer, it makes sense to talk about the case now. The OP may not have any claims yet, but if he waits a year, he will also lose a lot of time to buy a house elsewhere.

That sums up our situation well, because the unanimous opinion in the thread is that construction will not start for just one house – not even in November.

What surprises me, however, is that I did not find it on the two major common portals. No wonder if there are no interested parties :oops:

That is strange, but true. Apparently, the houses and apartments are no longer listed on the portals. That naturally makes it difficult to sell the missing units.

For the developer, the home is just a by-product of his economic process. His shareholders want returns, not to create living space or fulfill dreams.

We are not interested in fulfilling any dream with the house – a newly built terraced house with a garden the size of a beach towel is not suitable for that. We therefore have emotional distance. For us, it is primarily important not to waste years and a lot of money until we can move in there or find something else. Therefore, we will first clarify whether May is really the completion date accepted by the developer. If that is the case, we signal openness to any solution – be it the announced start of construction in November or something else.

That is strange, but true. Apparently, the houses and apartments can no longer be found on the portals.

No longer? Does that mean they used to be there? That would be an indication that the developer might no longer intend to complete the project. I would address that very politely. It doesn’t have to come across as accusatory, just ask how the sale of the other units is going, and then casually mention that you noticed they are no longer being advertised.

That is strange, but true. Apparently, the houses and apartments can no longer be found on the portals. That, of course, makes it difficult to sell the missing units.

No, that is neither strange nor does it make selling more difficult.

Not anymore? Does that mean they were listed before?
That would be an indication that the developer might no longer intend to complete the project.

And not at all. But

mentioning in passing that you noticed they are no longer being advertised.

can still be clever ;-)

That sums up our situation well, because the unanimous opinion in the thread is that construction will not start for a single house alone - not even in November. [...] For us, it is primarily relevant that we do not waste years and a lot of money until we can move in there or find something else. Therefore, we will first clarify whether May is really the completion date accepted by the developer. If that is the case, we signal openness to any solution - whether it's the announced start of construction in November or something else.

I very likely assume that the developer will stick to realizing the row of terraced houses - but also that "November" by far will not be the last word. In that respect, it probably makes the most sense that you consult with your financer and your lawyer about an offer of termination to the developer. You can then initiate that based on the impression of his changed intentions. Until then, do not make any effort to push for a meeting, but only approach the developer after the consultations. In my assessment, the developer will not inquire on his own but will be glad about every week in which you leave him alone and he can keep his planning under wraps.

So keep radio silence from your side towards the developer; meanwhile, immediately go to the financer to explore the amount of the cancellation costs, and then to the lawyer to formulate a termination offer. Afterwards, you write to the developer (in wording and deadline discussed with the lawyer) something like this: you see yourself currently in a situation of months-long planning uncertainty regarding a possible move-in date and therefore now ask for a binding confirmation of such, "alternatively" you would offer negotiations about a termination. Then you wait to see how he "comes along," as the big-mouth Rhinelander says. Don’t overdo it, but also do not underestimate what the developer values the gained planning freedom. My prognosis is that a solution calculated for you at break-even will be the most promising one.

Have prices really dropped by 20%+ or were the developers' profits in the meantime so high? Because on the homepage of Norddeutsche Wohnbau there are old prices of the project Innerste Aue and on ImmoScout there are new prices partly up to €70,000 less per apartment. Maybe it will start soon with you in Sarstedt after all.

You can somewhat imagine it like during the winter sale. Even if the houses are not yet built or not finished, capital is naturally tied up. In this case, you have to sell at some point, if necessary even below purchase price. But that cannot go on permanently. A clothing store cannot offer its goods at winter sale prices all year round, and a construction company also cannot forgo any profit in the medium term.

Wages are rising, energy costs are still much higher than at the end of 2021. This again affects material costs, especially where production is very energy- or labor-intensive. It is beyond me how prices are supposed to drop significantly, as margins have already decreased considerably due to the zero increase in price adjustments by many house providers.

And if there is no profit in sight, there is no need to do it.

Helma and [Traumhaus] are therefore currently also in crisis. So it affects both large and small companies.