Despite a loss of two billion in the past quarter, Vonovia boss Rolf Buch is satisfied with the economic situation of his company. “Our development in the quarter shows that the rental market in Germany is a stable business even in turbulent times. Due to the strong development in our core business, we remain positive‘ Buch said on a conference call Friday morning.
The loss is primarily due to a revaluation of buildings and apartments owned by the Group. These have gone down in value. On the other hand, Vonovia’s core business, the letting of living space, is developing well. That’s why the company is so relaxed. Because rents have gone up lately. The average rent is currently just under EUR 7.60 per square meter. This is higher than the average in Germany.
There is less and less social housing
Increased rents for social housing are particularly noticeable. Previously, they had fixed prices and were therefore relatively cheap. If they fall out of the bond, the price often goes up as well. However, there are fewer and fewer apartments with fixed prices throughout Germany. There are still around one million social housing units left. In 2006 there were almost twice as many.
NRW is still relatively good for social housing. There are around 2,400 price-fixed apartments for every 100,000 people. Compared to other federal states, only the city states of Bremen and Hamburg have a higher rate. However, the number of social housing units is also declining here.
Vonovia imposes a freeze on new construction
But it is needed, and not only the German Tenants’ Association demands it. Vonovia boss Rolf Buch also admits problems: “We have a massive problem in the population with the supply of housing. We see that every day on our hotlines and when viewing apartments. An already difficult situation has become even more difficult here.“
2023-08-04 18:24:14
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