There is an article in the FAZ titled Outrage over KfW, reporting on how the halt affects the real estate industry.
"Two of his projects are affected, involving millions in funding. Another Frankfurt developer, primarily active in the Niederrad office city, reports 2.5 million euros in subsidies that he has now missed out on."
That's where the larger sums come from – it's not just the small home builders.
I know. We finance these companies as well. There are enough (pension) funds or other investors who work exclusively with KfW (fully utilizing KfW loans and the rest is equity). However, the large projects don’t die because of the missing subsidies. The subsidy is just the icing on the cake for a profitable project.
Please? The daily press as well as social networks are currently full of reports about projects that now face an uncertain financial future or are completely at risk of failing.
Why are they at risk of failing? Please explain it to me. The exact why.
towards the developer who wanted to implement a KfW55 project at the last minute and now wants to pass the additional costs on to the apartment and townhouse buyers,
The developer who pockets the subsidy himself (since the buyers can no longer receive the subsidy), to increase profit? He has no additional costs, only somewhat less revenue. By the way, he is not implementing a project last minute either.
This is not going to work with the promised additional living space.
The subsidy was never intended for that. It was a gift for energy-efficient building, mostly for people who can already afford building anyway.
I know the topic more than well. As a homeowner and as a financier (we grant about €11 billion in real estate loans every year).