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Capital Markets Outlook

The end of 2022 marked the end of a turbulent year dominated by change and transformation. The war in Ukraine caused dismay and also triggered events with far-reaching implications. The realms of industry and business were confronted with rising inflation, higher interest rates, increased energy prices and the associated uncertainty.

In 2022, Vonovia was once again successful in demonstrating that its debt instruments remain a highly sought-after investment thanks to its loan-to-value ratio, the cover pool eligibility of its financing and its investment grade ratings. 2023 will be another year full of challenges, as there seems to be no end in sight to the current obstacles. We also believe that the considerable challenges currently facing us present opportunities, because the construction and real estate industry has huge potential to become more sustainable and climate-friendly. This is an area in which we want to live up to our responsibility and play a pioneering role.

A mild (technical) recession is forecast in both the United States and the eurozone, followed by a below-average recovery. Inflation will slow in 2023 – both the FED and the ECB are likely to have finished their tightening cycle next year.