Condominium with residual debt - Is financing the purchase of land and house construction possible?

Exactly, we are here in Cologne and anyone who does a bit of research knows which property it is about. There are 4 parcels in the row. The middle two are currently being sold by the city to the highest bidder. We are currently considering placing a bid with a family friend and planning approximately the same project. There is currently no development on the far left and right sides.

Questions: Has anyone had experience with municipal allocation by highest bid? Is 200,000€ realistic? Too high or too low?

Yes, it is indeed very rare that a free plot of land is sold by the city hall in/around Cologne. I remember a sale of the site of the old sewage treatment plant by highest bid in Bergisch Gladbach (Refrath) where prices soared a few years ago. In another auction by a private broker for the German Cancer Aid (bequeathed in the will of the deceased), the sale by bidding lasted a whole week. Every day you could submit your highest bid, then in the evening you learned the highest bid of the day and could bid again the next day. It was a house in need of renovation with about 180 sqm of living space and certainly 800 sqm of land at Raderthalgürtel. The ancient electrical wiring was surface-mounted with rotary switches, old water pipes, roof with holes due to collapsed beams, etc., all very old and partly broken. The price was already over 750,000 EUR at the end of the first day (Monday), the auction ran until Friday ;-)

Long story short, but forget getting the plot in/near Cologne for that price.... People will keep bidding until private insolvency, it's always "the last opportunity" for a free plot.

The price was already over 750,000 EUR at the end of the first day (Monday), the auction ran until Friday ;-)

That was also "for a good cause". ;) Even if it doesn't have to be that extreme, I wouldn't necessarily be surprised about 1000 EUR/m², but you can always give it a try.

Exactly, we are here in Cologne and anyone who does a little research knows which property it is about. There are 4 parcels in the row. The middle two are currently being sold by the city to the highest bidder. We are currently considering placing a bid with a family we are friends with and plan roughly the same project. There is currently no development on the far left and right.

You probably mean Holweide and not Weiß, but even in Holweide, the 1,000 EUR will probably be reached quickly in a bidding process. The current land reference values at BORIS NRW are between 800 and 1,040 EUR depending on the location, and these are already past values. And Weiß is anyway four-digit between 1,200 and 1,600 per sqm.

That was also "for a good cause." ;) Even if it doesn’t have to go that extreme, I wouldn’t necessarily be surprised about 1,000 EUR/m², but you can give it a try.

The good cause was definitely fulfilled and the broker’s coffers well filled. For an open house day and 5 days of maintaining an Excel spreadsheet, well-earned money. I’m curious what the OP will report about the outcome of the bidding process. I guess there will hardly be any chance to get the property for under 1,000 EUR/sqm.

With a plot size of 8 meters, only 5 meters of exterior width remain for the house. We ourselves had a 5-meter-wide townhouse (interior width just under 4.60m) and I would not do it again. It is simply too small and too tight for me everywhere.

With 8 meters of plot size, only 5 meters of exterior width remain for the house.
We ourselves had a 5-meter-wide townhouse (interior width just under 4.60m)
and I wouldn’t do it again. It is simply too small and too cramped everywhere for me

In the area, there is probably not much choice. For example, I also find my 20-meter-wide plot in Brandenburg a bit narrow :)