Price explosion when building: First builders give back plots

Created: 06/16/2022, 04:56

By: Tobias Piece, Emily Spanel

In the past few weeks, the municipalities in the Werra-Meißner district have repeatedly had to return building plots that have already been developed.

© Freelancer

In the municipalities in the Werra-Meißner district, building plots that have already been developed are repeatedly returned.

Werra-Meißner - The reason for the return of already developed building plots is apparently the price increase.

This was the result of a random survey by hna.de.

In most cases, price increases are given as the reason.

"The talks about withdrawals from the construction project are increasing every week," says construction financier Carsten Stelzner from Schwäbisch Hall.

In the municipality of Wehretal, where there has been a lot of new construction activity for years, four people wanting to build have abandoned their construction plans in the past few weeks.

A particular stumbling block for construction financing is currently the immense increase in construction costs, said Uwe Linnenkohl, CEO of VR-Bank Mitte.

"If new construction projects are postponed, this is justified with the drastically increased construction prices, interest rates and delivery problems with the material," explains Wehretal's Mayor Timo Friedrich.

Werra-Meißner-Kreis: Price explosions when building - why builders are now giving back their properties

The situation in Hessisch Lichtenau is similar. "Two builders have asked whether their plots of land can be taken back, one has announced that the start of construction will be delayed due to delivery problems with building materials," reports Mayor Michael Heussner.

In Lossestadt there is an obligation to build on the building site within three years.

Additional acquisition costs are borne by the buyer upon return

In order to prevent speculation, cities and municipalities have a right of repurchase noted in the contract.

The municipality can then demand that the property be returned at the purchase price originally paid.

The construction period is usually between two and five years.

A building plot can be returned until the notary contract has been signed.

There is usually no interest on the buyback.

However, the buyer is usually left with the sideline costs such as a notary (2 percent) or real estate transfer tax (6 percent). 

Returned five allocated building plots

In Eschwege, for example, house construction in the new development area on Höhenweg has to start within 24 months.

The plots of land on Höhenweg were so popular that they were raffled off last year.

According to the city, five allotted lots were returned before the conclusion of a property purchase agreement.

"If the buyer encounters unforeseeable difficulties during the construction phase, we will try to reach an amicable solution," said the spokeswoman for the county seat, Scarlett Grebestein.

The municipality of Wehretal reacted immediately "to the unprecedented situation": While construction in Wehretal usually has to start no later than three years after the acquisition of a property, the deadline has now been increased to five years.

The house no longer has to be ready for occupancy in five, but only seven years after purchase. (Tobias Stück and Emily Hartmann)