Major market developments and valuation parameters that have an impact on the fair values of Vonovia are assessed on an ongoing basis. Due to the development in the parameters that are already known and the continued positive market environment, the company expects to see an increase in value that we expect to reflect in the consolidated interim financial statements as of June 30, 2019. As in the previous year, Vonovia will be performing a new valuation for major parts of the portfolio at the end of the first half of the year.
Due to the particular situation regarding data on the Swedish real estate market, it was possible to arrive at valid values for the parameters relevant to real estate valuation of the Swedish portfolio for the reporting date as of March 31, 2019. The resulting valuation effect for the period from January 1 to March 31, 2019 in the amount of € 51.9 million (Q1 2018: € 0.0 million) was recognized as of March 31, 2019.
In addition, buildings under construction (new construction/development to hold) were completed during the reporting period. On completion of these properties, a fair value measurement is performed for the first time. The resulting valuation effect for the period from January 1 to March 31, 2019, amounts to € 5.3 million (Q1 2018: € 0.0 million).
The recognition and valuation of investment properties are explained in detail in the consolidated financial statements for 2018.