A three-year delay and allegations of unfinished work at a Helmsange residential development have sparked a bitter dispute between the property developer and numerous homeowners on the rue du moulin.

Tensions are rising between a property developer and numerous homeowners in Helmsange over a residential project on Millewee street that is now more than three years behind schedule.

The dispute centers on conflicting perspectives. On one side, buyers are invoking the "turnkey" rule, which guarantees a fully finished and properly constructed home upon handover. On the other, the developer cites the ongoing construction sector crisis and asserts they are doing everything possible to meet expectations amidst widespread industry problems.

'A three-year delay is definitely too long'

The delay has drawn sharp criticism from residents. "A three-year delay is definitely too long", stated the chair of the residents' association for two of the three blocks.

While construction has advanced since RTL first reported on the issues in May – with most apartments now largely or fully finished – the developer continues to face complaints over unfulfilled contractual promises.

Residents express frustration with the pace of progress. One homeowner described "constant putting-off and repeated empty promises". A couple, now living in their penthouse after a two-year wait, reported that numerous items remain broken and require repair. Another buyer, Sajad Tabibi, has yet to be able to move into his unit.

'No keys without signing a waiver'

Tabibi detailed his ongoing struggle to our colleagues from RTL Télé. Despite having signed the purchase contract at the Housing Fair in 2019 – six years ago – he has been waiting nearly three years for his keys. He stated that repeated enquiries about the move-in date were met with indefinite postponements.

According to Tabibi, the developer is withholding the keys until he signs a document waiving his right to take legal action. He refused this condition and further claimed the developer told him that even with the keys, he would not be permitted to register his residence with the municipality.

In the interim, Tabibi, his wife, and their small child have been living in a weekend cabin for months.

Unfinished interiors and a damp cellar

Other residents who have taken possession of their units report significant shortcomings. One couple demonstrated to our colleagues that their flat was delivered without a toilet. They also showed clear dampness in the cellar, a condition Lucien Linster, the representative for the dissatisfied owners, called a "no-go".

Linster, himself an owner, expressed his frustration over the three-to-four-year delay, stating he has "no sympathy" for the developer's position and is demanding financial compensation.

His tenant, Remy Tertre, reported a mixed experience. While satisfied with the interior of his flat, he is frustrated by the unfinished state of the surroundings, citing ongoing construction noise, mess, and incomplete communal areas.

Not everyone is dissatisfied

However, not all residents share this dissatisfaction. Claude Jacoby moved into the Diamante block in July 2023. Although he acknowledged delays and unfinished communal areas at the time, he concluded that the work inside his 75-square-metre flat was done to an acceptable standard. "It was in good condition, with high-end materials," Jacoby said.

Developer cites soaring costs, invested 'seven million from own pocket'

In response to the criticisms, the developer, Refa Real Estate, has presented its case, attributing the delays to a series of external challenges. The company highlights the construction sector crisis, the COVID-19 pandemic, soaring material costs, and the unforeseen need to decontaminate the building site.

Thomas Becker, Administrative Director of the Refa Real Estate Group, provided an update on the project's status. He stated that two of the three blocks are entirely finished, pending only minor touch-ups for damages that occurred during move-ins. Becker emphasised the financial strain on the company, noting that overall costs have surpassed the income from individual flats. "We put in seven million from our own pocket", he stated, arguing this commitment distinguishes them from other developers who have gone bankrupt or compromised on quality.

Despite these explanations, the core issue remains: a turnkey agreement was signed, and in several cases in Helmsange, that contractual obligation has yet to be fully met.

Full report by RTL Télé (in Luxembourgish and French)