Expert: Owners can buy a share of the property - aim for an agreement by April 2025

Expert: Owners can buy a share of the property - aim for an agreement by April 2025

The Heidenheim local council has unanimously decided to exercise the city's right to purchase the Eugen Loderer Center. The center was built by GBH, the apartments and shops now belong to the real estate company Vonovia. A third of the building belongs to the Awo retirement and nursing home. The leasehold agreement for the center's property ends in April 2025, after which the property would revert to the property owner. The city administration is now entering into land negotiations in order to reach a quick solution and give the owners the opportunity to buy their share of the property. If this does not succeed by April 2025, the properties will revert to the city and the owners would have to be compensated. In this case, the city would offer the properties for sale to their owners.

According to the city administration, no property transfer taxes are due for property owners when they buy their share of the property from the city. The property purchase price was not disclosed, but the property could be worth between 4.8 and 6 million euros, based on prices per square meter of 800 to 1,000 euros.

The local council's decision to exercise the right of purchase is expected to have an impact on the city's real estate market. The purchase of the property shares by the owners could lead to higher real estate prices, as this could increase the demand for apartments and shops in the Eugen Loderer Center. The owners could also invest in their properties to increase the value and increase the attractiveness of the center. This could, in turn, lead to higher demand and higher prices.

The possible reversion of the properties to the city could lead to uncertainty and losses for the owners. In this case, they would have to expect compensation of 66 percent of the original value. However, the city would suspend compensation and put the properties up for sale. The buyers would then have to pay real estate transfer tax on the full value of the property. This uncertainty could lead to decreasing demand and impact prices in the region.

The exact impact on the real estate market and the industry in Heidenheim remains to be seen. It will be important to closely monitor negotiations and developments regarding the Eugen Loderer Center in order to assess the long-term impact.

Source: According to a report by www.hz.de