Portfolio Structure
Portfolio in the Property Management Business
As of December 31, 2021, the Group had a total real estate portfolio comprising 565,334 residential units (2020: 415,688), 168,015 garages and parking spaces (2020: 139,429) and 9,289 commercial units (2020: 6,564). Our locations span 639 cities, towns and municipalities in Germany, Sweden and Austria. 71,173 residential units are also managed for other owners. Most of the properties in the Group’s portfolio are multi-family residences.
In terms of fair value, most of the properties (around 89%) are located in Germany. The Swedish portfolio accounts for around 8% of the fair value, while the share of the Austrian portfolio comes to around 3%. The portfolio is as follows as of December 31, 2021:
Portfolio and Fair Value by Country
Portfolio and Fair Value by Country | ||||||||||||
Portfolio | Fair value* | |||||||||||
Residential units | Living area (in thou. m²) | Vacancy (in %) | (in € million) | (in €/m²) | In-place rent multiplier | |||||||
Vonovia Germany | 353,963 | 22,103 | 2.2 | 54,464.5 | 2,401 | 28.0 | ||||||
Vonovia Sweden | 38,486 | 2,749 | 2.3 | 7,386.0 | 2,475 | 20.6 | ||||||
Vonovia Austria | 21,518 | 1,594 | 5.3 | 2,932.5 | 1,674 | 26.5 | ||||||
Vonovia without Deutsche Wohnen | 413,967 | 26,445 | 2.4 | 64,783.0 | 2,362 | 26.9 | ||||||
Deutsche Wohnen | 151,367 | 9,084 | 1.7 | 27,628.7 | 2,894 | 33.5 | ||||||
- * Fair value of the developed land excluding € 5,433.6 million, of which € 636.0 million for undeveloped land and inheritable building rights granted, € 1,194.7 million for assets under construction, € 1,154.4 million for development, € 1,200.1 million for nursing portfolio and € 1,248.4 million for other.
Rent and Rental Growth by Country
Rent and Rental Growth by Country | ||||||||||
In-place rent* | Rent increase | |||||||||
Total (p.a. in € million) | Residential (p.a. in € million) | Residential (in €/m²) | Organic (in %) | Market rent forecast valuation (in % p.a.) | ||||||
Vonovia Germany | 1,942 | 1,863 | 7.19 | 3.9 | 1.6 | |||||
Vonovia Sweden | 358 | 332 | 10.31 | 3.2 | 2.0 | |||||
Vonovia Austria | 110 | 89 | 4.89 | 2.8 | 1.7 | |||||
Vonovia without Deutsche Wohnen | 2,411 | 2,284 | 7.38 | 3.8 | 1.7 | |||||
Deutsche Wohnen | 824 | 772 | 7.20 | 1.2** | 1.3 | |||||
- * Shown based on the country-specific definition.
- ** Deutsche Wohnen like-for-like definition.
As of December 31, 2021, the Group’s real estate portfolio across Germany comprised 505,330 residential units, 126,200 garages and parking spaces and 6,558 commercial units distributed across 485 cities, towns and municipalities. The total living area amounted to 31,187,503 m², with the average apartment size coming in at around 62 m². With a vacancy rate of 2.1%, an average monthly in-place rent of € 7.19 per m² was generated in Germany. The annualized in-place rent for the residential portfolio as of December 31, 2021, came to € 2,635 million for apartments.
In Sweden, the Group’s real estate portfolio comprised 38,486 residential units spanning a total living area of 2,748,539 m², 24,952 garages and parking spaces and 2,137 commercial units. With a vacancy rate of 2.3%, the residential portfolio generated annualized in-place rent of € 332 million as of December 31, 2021. The apartments, which average 71 m² in size, generate a monthly in-place rent of € 10.31 per m² (inclusive). Most of them are located in the Stockholm, Gothenburg and Malmö regions.
In the Austrian portfolio, which is largely located in Vienna, Vonovia achieved an annualized in-place rent of € 89 million as of December 31, 2021, with a vacancy rate of 5.3% in the residential portfolio, which comprises 21,518 units covering total living space of 1,593,540 m². The monthly in-place rent amounted to € 4.89 per m² with an average apartment size of around 74 m². The portfolio also comprised 16,863 garages and parking spaces and 594 commercial units.
Changes in the Portfolio
In the second half of the year, the takeover of Deutsche Wohnen saw Vonovia acquire a portfolio of 154,717 apartments, mainly in the greater Berlin region and in the Dresden, Leipzig and Frankfurt am Main areas. The portfolio was as follows at the time of the takeover:
Portfolio Deutsche Wohnen at the time of the takeover
In-place rent |
||||||||||
Residential units |
Living area (in thou. m²) |
Vacancy (in %) |
Residential (p.a. in € million) |
Residential (in €/m²) |
||||||
Deutsche Wohnen* |
154,717 |
9,303 |
1.6 |
782 |
7.17 |
|||||
- * Shown based on the Deutsche Wohnen definition.
In the course of 2021, properties from the portfolio earmarked for sale were also disposed of in several transactions as part of the implementation of the portfolio management strategy. At the time of each transfer of possession, benefits and encumbrances, the statistics for the portfolios sold were as follows:
Disposal portfolios
In-place rent* |
||||||||||
Residential units |
Living area (in thou. m²) |
Vacancy (in %) |
Residential (p.a. in € million) |
Residential (in €/m²) |
||||||
Disposal portfolios 2021 |
696 |
40.9 |
11.9 |
2.3 |
5.46 |
|||||
- * Shown based on the country-specific definition.
After the reporting date, the benefits and encumbrances relating to the majority of the 14,750 apartments from the “Future and Social Pact for Housing” were transferred to municipal housing companies berlinovo, degewo and HOWOGE in early January 2022. In addition to the acquisition and sale of larger housing stocks, Vonovia’s portfolio changed in 2021 as a result of additions arising from tactical acquisitions, the construction of new apartments and attic extensions on the one hand, and disposals of condominiums and multi-family residences from the portfolio earmarked for sale on the other.
Vonovia invests in its strategic holdings in particular in line with its climate path to promote sustainability and in line with its innovation strategy. We act on behalf of neighborhoods with the (new) development of our urban portfolios. Against this backdrop, we split our strategic portfolios into neighborhoods (urban quarters) and solitary properties (urban clusters) to which the options for action available as part of the strategy and business model are applied in an adaptive manner.
Following the implementation of the annual structured reassessment of all potential, as of December 31, 2021, Vonovia’s portfolio is as follows:
Portfolio and Fair Value by Portfolio Cluster
Portfolio and Fair Value by Strategy* | |||||||||||
Portfolio | Fair value** | ||||||||||
Residential units | Living area (in thou. m²) | Vacancy (in %) | (in € million) | (in €/m²) | |||||||
Strategic | 328,811 | 20,406 | 2.1 | 50,015.8 | 2,391 | ||||||
Urban Quarters | 239,617 | 14,740 | 2.2 | 35,776.6 | 2,378 | ||||||
Urban Clusters | 89,194 | 5,666 | 2.0 | 14,239.3 | 2,425 | ||||||
Recurring Sales | 24,085 | 1,609 | 2.9 | 4,242.0 | 2,578 | ||||||
Non-core Disposals | 1,067 | 88 | 12.3 | 206.6 | 1,682 | ||||||
Vonovia Germany | 353,963 | 22,103 | 2.2 | 54,464.5 | 2,401 | ||||||
- * Excl. assets of Deutsche Wohnen.
- ** Fair value of the developed land excluding undeveloped land and inheritable building rights granted, assets under construction, development and other.
Rent and Rental Growth by Portfolio Cluster
Rent and Rental Growth by Strategy* | ||||||||
In-place rent** | Rent increase | |||||||
Total (p.a. in € million) | Residential (p.a. in € million) | Residential (in €/m²) | Organic (in %) | |||||
Strategic | 1,791 | 1,719 | 7.18 | 4.0 | ||||
Urban Quarters | 1,267 | 1,223 | 7.07 | 4.0 | ||||
Urban Clusters | 523 | 496 | 7.45 | 4.2 | ||||
Recurring Sales | 142 | 137 | 7.29 | 2.8 | ||||
Non-core Disposals | 9 | 7 | 8.12 | 3.5 | ||||
Vonovia Germany | 1,942 | 1,863 | 7.19 | 3.9 | ||||
- * Excl. assets of Deutsche Wohnen.
- ** Shown based on the country-specific definition.
In order to boost transparency in portfolio presentation, we also break our portfolio in Germany down into 15 regional markets. The regional market classification is orientated toward the residential real estate market regions in Germany. These markets are core towns/cities and their surroundings, mainly urban areas. Our decision to focus on the regional markets that are particularly relevant to Vonovia is our way of looking ahead to the future and provides an overview of our strategic core portfolio in Germany.
In relation to the fair value of Vonovia, 93% of our German portfolio excluding Deutsche Wohnen is located in 15 regional markets. Only a small part of our strategic stock is located outside of these 15 markets. We have referred to this group as “Other Strategic Locations” (around 7% of the total fair value). Our stocks earmarked for sale from the “Non-core Disposals” and “Recurring Sales” subportfolios in locations that do not include any strategic stocks are shown as “Non-strategic Locations.” The fact that our portfolio is spread nationwide makes us more independent of the circumstances prevailing on individual regional markets.
As of December 31, 2021, the German portfolio is as follows, broken down into regional markets:
Portfolio and Fair Value by Regional Market
Portfolio and Fair Value by Regional Market* | ||||||||||||
Portfolio | Fair value** | |||||||||||
Residential units | Living area (in thou. m²) | Vacancy (in %) | (in € million) | (in €/m²) | In-place rent multiplier | |||||||
Berlin | 45,838 | 2,927 | 1.2 | 8,964.6 | 2,962 | 34.7 | ||||||
Rhine Main Area | 27,103 | 1,731 | 1.6 | 5,605.9 | 3,182 | 30.1 | ||||||
Southern Ruhr Area | 43,012 | 2,649 | 2.9 | 5,267.0 | 1,958 | 24.9 | ||||||
Rhineland | 28,846 | 1,933 | 2.3 | 4,963.1 | 2,502 | 27.2 | ||||||
Dresden | 38,461 | 2,194 | 3.3 | 4,656.1 | 2,032 | 26.7 | ||||||
Hamburg | 19,647 | 1,241 | 1.4 | 3,611.8 | 2,833 | 30.9 | ||||||
Kiel | 24,404 | 1,399 | 2.1 | 3,005.5 | 2,076 | 25.4 | ||||||
Munich | 9,681 | 636 | 0.9 | 2,742.7 | 4,195 | 39.1 | ||||||
Stuttgart | 13,603 | 854 | 1.5 | 2,551.9 | 2,934 | 29.2 | ||||||
Hanover | 16,137 | 1,021 | 2.1 | 2,392.3 | 2,299 | 27.1 | ||||||
Northern Ruhr Area | 24,969 | 1,540 | 2.8 | 2,179.9 | 1,402 | 19.2 | ||||||
Bremen | 11,830 | 717 | 2.9 | 1,484.2 | 2,018 | 27.2 | ||||||
Leipzig | 8,915 | 576 | 2.3 | 1,229.6 | 2,025 | 26.9 | ||||||
Westphalia | 9,451 | 617 | 2.3 | 1,173.3 | 1,879 | 23.5 | ||||||
Freiburg | 4,036 | 276 | 1.0 | 788.7 | 2,829 | 29.3 | ||||||
Other Strategic Locations | 26,569 | 1,689 | 2.7 | 3,611.2 | 2,103 | 24.4 | ||||||
Total Strategic Locations | 352,502 | 21,998 | 2.2 | 54,227.9 | 2,404 | 28.1 | ||||||
Non-Strategic Locations | 1,461 | 105 | 5.4 | 236.6 | 1,848 | 24.9 | ||||||
Vonovia Germany | 353,963 | 22,103 | 2.2 | 54,464.5 | 2,401 | 28.0 | ||||||
- * Excl. assets of Deutsche Wohnen.
- ** Fair value of the developed land excluding undeveloped land and inheritable building rights granted, assets under construction, development and other.
Rent and Rental Growth by Regional Market
Rent and Rental Growth by Regional Market* | ||||||||||
In-place rent** | Rent increase | |||||||||
Total (p.a. in € million) | Residential (p.a. in € million) | Residential (in €/m²) | Organic (in %) | Market rent forecast valuation (in % p.a.) | ||||||
Berlin | 258 | 245 | 7.10 | 8.4 | 1.8 | |||||
Rhine Main Area | 186 | 180 | 8.81 | 3.1 | 1.8 | |||||
Southern Ruhr Area | 212 | 206 | 6.67 | 4.1 | 1.5 | |||||
Rhineland | 183 | 174 | 7.70 | 3.3 | 1.6 | |||||
Dresden | 175 | 165 | 6.46 | 2.3 | 1.6 | |||||
Hamburg | 117 | 112 | 7.64 | 2.8 | 1.6 | |||||
Kiel | 118 | 113 | 6.87 | 4.2 | 1.6 | |||||
Munich | 70 | 66 | 8.76 | 4.0 | 1.9 | |||||
Stuttgart | 87 | 84 | 8.42 | 3.4 | 1.8 | |||||
Hanover | 88 | 85 | 7.10 | 2.5 | 1.6 | |||||
Northern Ruhr Area | 114 | 110 | 6.14 | 2.4 | 1.1 | |||||
Bremen | 55 | 52 | 6.28 | 3.1 | 1.6 | |||||
Leipzig | 46 | 43 | 6.38 | 3.6 | 1.6 | |||||
Westphalia | 50 | 49 | 6.75 | 3.8 | 1.5 | |||||
Freiburg | 27 | 26 | 7.99 | 4.1 | 1.6 | |||||
Other Strategic Locations | 148 | 143 | 7.27 | 3.6 | 1.5 | |||||
Total Strategic Locations | 1,933 | 1,855 | 7.19 | 3.9 | 1.6 | |||||
Non-Strategic Locations | 9 | 8 | 6.80 | 2.3 | 1.5 | |||||
Vonovia Germany | 1,942 | 1,863 | 7.19 | 3.9 | 1.6 | |||||
- * Excl. assets of Deutsche Wohnen.
- ** Shown based on the country-specific definition.