Central heating in Groner Landstrasse 9 suspended – 300 apartments affected!

Central heating in Groner Landstrasse 9 suspended – 300 apartments affected!

It could be frosty in Cologne in the next few weeks, and not just because of the weather. The central heating in the Groner Landstraße 9 building complex has been switched off for the time being, and this has serious consequences for around 300 affected apartments. The reason? Missing rent payments, as property manager Dominik Fricke explains. The outstanding sum of 850,000 euros has not yet been verified, which makes the situation even more complicated. This decision will be discussed at the upcoming owners' meeting, which is scheduled to take place in October and will decide how long the heating will remain switched off. The owner of this building complex, Gänseliesel Wohn GmbH and Winteks GmbH, have filed for bankruptcy and the situation could become even worse if no solution emerges. This is a dramatic case in the midst of an already tense heating situation in Germany.

But the Groner Landstrasse case is not the only one that is causing heating costs in the country to waver. The entire heating industry is showing worrying trends. According to a report by the Federal Association of the German Heating Industry (BDH), sales figures for heat generators are in free fall. Sales have fallen by almost half - from more than 1.3 million devices in 2023 to just 712,500 in 2024. This has hit many manufacturers and service providers hard. Companies such as Stiebel Eltron, Viessmann and Vaillant have already had to cut jobs as demand for heating systems has fallen dramatically. The heat pump market in particular is having a difficult time: only 193,000 devices sold this year mean a decline of 46 percent compared to the previous year.

Challenges in the heating market

The decline in the heating market can partly be attributed to uncertainties in connection with the Building Energy Act (GEG). Many homeowners are hesitant in their investment decisions, which could push the increase in installed heat pumps annually below a previously defined target of 500,000. The creeping municipal heat planning causes confusion for many and slows down the initiative to take action. Between the many legal requirements and the uncertainty about future funding strategies, private homeowners have to make a dangerous balancing act - the fear of possible high penalties, which can be up to 50,000 euros, is always present.

In addition, there is a stagnation in innovation and consumers wait to see what changes politically instead of investing in new heating systems. While the number of approved funding applications increased last year, the feeling of uncertainty remains omnipresent.

Insolvency cases and their consequences

The situation is made even more complicated by the insolvency proceedings at Windhager Zentralheiz GmbH, which opened on June 1, 2024. Business operations continued despite difficult conditions and customer service had to be discontinued because spare parts supplies were depleted. Insolvency administrator Georg Jakob Stemshorn from Pluta Rechtsanwalts GmbH has now reached a negotiated solution with Best Heating Technology (BHT). BHT, which has been on the market as a new brand since April 2024, plans to ensure the quality of its products in Germany.

The closure of the location in Gersthofen, Bavaria, also has an impact on the heating landscape. There are hardly any offers from other investors, and many are skeptical about the future of Windhager products. The uncertainty is not only felt in the Cologne area, but runs like a common thread through the entire heating industry in Germany.

The coming weeks and months could be crucial for many tenants and owners in Cologne and beyond. It remains to be hoped that both the owners' meeting on Groner Landstrasse and the political framework will soon lead to solutions before winter really sets in.