13 Net Income from Fair Value Adjustment of Investment Properties

Investment properties in the German and Austrian portfolios are measured by the in-house valuation department according to the fair value model. Any gains or losses from a change in fair value are recognized in the income statement. External appraisers are responsible for the valuation of the portfolios in Sweden. The measurement of the investment properties led to a net valuation gain during the 2019 fiscal year of € 4,131.5 million (2018: € 3,517.9 million). The high valuation result for 2019 is mainly due, in addition to the investment activity and strong development of Vonovia’s operating business, to the dynamic market conditions for residential properties at the moment. These are reflected both in rental price developments and, in particular, also in an increase in real estate purchase prices triggered, among other things, by yield compression on the demand side.