ᐅ Only one-third of the new apartments sold 1.5 years after the launch

Hello everyone,

I am considering buying a condominium in Düsseldorf Benrath. The developer Bonava is building two apartment buildings with a total of about 90 units. Sales started in summer 2022. Currently, 1.5 years after the sales launch, the shell construction is completed, and the move-in date is scheduled for autumn 2024 (according to the developer, construction is fully on schedule). What puzzles me is that of the 90 units, only about half are currently “officially” on the market or have been listed on the website, and of those, only about half have been sold so far. So overall, only about one-quarter to one-third of all units have been sold, 1.5 years after the sales started and three-quarters of a year before completion. Bonava is also advertising extensively through Google Ads and has numerous listings on property portals like Immoscout.

Does anyone know if this is normal (in today’s market), and whether there could be any risk for me as a buyer if the developer does not sell all the units? As mentioned, the shell is finished, but windows, electrical work, and other installations are still missing.

Best regards
Torsten

At interest rates above 3%, hardly anyone can afford it anymore.
Why not just wait until the apartments are finished and then buy?

TorstenKandt schrieb:

Overall, about one-quarter to one-third of the apartments have been sold, 1.5 years after the sales started and three-quarters of a year before completion.

This project is simply at the wrong time. Too expensive in Düsseldorf for many potential buyers. I will take a closer look later – we are also based in Düsseldorf.
Sales for projects that are actually too expensive are generally very slow everywhere, except in the luxury segment.

TorstenKandt schrieb:

Does anyone know if this is normal nowadays, and if there is a risk for me as a buyer if the developer does not sell all the apartments?

No more risk than before, with the added factor that many developers have gone bankrupt in recent times.
Another risk is related to the homeowners’ association (HOA), if the developer holds the majority and can make decisions alone.

TorstenKandt schrieb:

What surprises me is that out of the 90 apartments, currently only about half are officially for sale or were listed on the website,

People prefer to buy when they feel scarcity. So, instead of putting all 90 apartments on the market at once, they start with only 20 units 😉

TorstenKandt schrieb:

and only about half of the apartments have been sold so far.

How do you know how many have been sold?
Buyers and investors often purchase multiple units.
Some might be kept and rented out?
Otherwise, I would consider the 90 units more of a rarity and offer only a few.

A small addition regarding Bonava. You know they are currently undergoing restructuring and the business is performing poorly? Nothing is being held back. The project simply isn’t working and is just burning through money. They are grateful for every unit that gets sold.