Challenges, Opportunities and Risks

Discussions in the political and public spheres have shown that our business goes hand in hand with high reputational risks. This can have a negative impact:

• on demand for our homes,
• in the form of stricter regulations on the residential property market, and
• on Vonovia’s attractiveness as an employer.

In this regard, a lack of skilled workers, continually climbing construction costs, rising requirements (e.g., the increase in regulations and legislative processes such as tenancy law and modernization cost allocation) and drawn out administration processes (e.g., relating to construction approvals) constitute particular challenges for Vonovia.

Neighborhoods that tenants consider to offer a particularly high standard of living increase Vonovia’s attractiveness and demand for our homes. We support this effect through our growth strategy and the development of new fields of business within the Value-add segment, ensuring that new opportunities are created for Vonovia. We can, for instance, increasingly generate cost advantages, improve the planning for measures and better overcome capacity bottlenecks by increasing the number of employees we have. By decentralizing our structures further, we can increase proximity to our tenants. Simultaneously, we generate efficiency advantages by standardizing processes and managing partial functions centrally. Serial construction enables us to keep costs low and shorten the time of construction work.