Homeowners' frustration over newbuild construction standstill

Three of the homeowners awaiting the construction of their new residences in the "Ouschterbuer" development met with RTL to express their frustrations. The construction site has been at a standstill, in some cases, for months. But how did it get to this point?

One owner, René Berchem, said: "With the best will in the world, we can't exactly say how it has come to this. It has been over a month since any work has been done on site, and now we are approaching their collective leave over summer."

When asked if he tried to contact the construction companies, Berchem said they had indirectly informed him of the halt in proceedings, but he had no written proof. "They said they weren't getting paid and that's why they packed up and left."

Promoter assures that work will resume

"The Capelli company said it had not paid invoices in several cases, but blamed this on the fact that the businesses in question had not correctly filed the invoices or had asked for too much money. This had not been agreed upon and consequently they were not paid."

The promoter responsible for the "Cité Ouschterbuer" development is part of international property developer Capelli, which also has an agency in Luxembourg. When asked, the company initially justified the delay due to the coronavirus pandemic and the war in Ukraine, but later admitted to having had issues with managing supplier invoices, blaming personnel changes. However, Capelli said the issues were close to being resolved, with construction companies urged to return to work as soon as possible.

However, the delays have resulted in financial difficulties for the owners awaiting their new homes. Jeff Wagner told RTL: "The bank is not playing along any more. With current interest rate hikes, we are feeling the pinch. We live in an apartment at the moment and have a mortgage to repay for that as well. We have two salaries but it's getting really, really tight now."

Another owner, Jennifer Vitriolo, said: "I'm a single mother, I put my flat up for sale so I could move here. The fact is, I had a contract with the bank, which has now run out. So now the bank has to take over the whole dossier and see if I can get another loan."

The owners have also contacted the housing and family ministers for advice, as well as the mayor of Differdange. If Capelli are to be believed, then work will resume on their homes soon. Only time will tell.