The Company
Vonovia’s business model is based on the provision and rental of good-quality and, most importantly, affordable living space at the right time, as well as the management of these properties. An established in-house craftsmen’s, residential neighborhood and caretaker organization, coupled with extensive back-office functions, support us in our management and further development of our housing stocks.
Vonovia continues to develop its real estate portfolio through active portfolio management. In addition to acquisition, sale and modernization, this also includes building new apartments for our own portfolio and for sale to third parties.
The business model is rounded off by the housing-related services we offer. The focus here is on offering cable TV, energy supply services for electricity and heating, as well as automated meter reading.
Aspects of Sustainability at Vonovia
This business model is based on a highly digitalized management platform and a similarly highly digitalized development platform allowing all stages in the value chain to be managed. These two platforms are the two most important intangible assets within the business model. Another intangible asset is customer loyalty, fostered through the Value-add business.
The aim is to make the business model future-fit in the long run by using sustainable new construction and refurbishment approaches and CO2 reduction in the real estate portfolio through innovations to contribute to solutions for the current climate protection objectives.
Vonovia focuses on the ESG aspects of sustainability, namely climate protection and the environment (E) by contributing to a reduction in carbon emissions; society (S) by acting responsibly towards all stakeholders; and governance (G) through sustainable, reliable and responsible corporate management. The concept of the neighborhood remains an overarching principle.
Around 75% of the real estate portfolio is located in contiguous urban quarters, i.e., neighborhoods that generally include more than 150 apartments. Designing homes that offer real quality of life always involves identifying what the relevant social structures need, taking into account the history of these neighborhoods. Neighborhoods are a key implementation level for the initiatives aimed at climate protection. The development business is also consistent with the sustainable neighborhood concept.
This means that Vonovia’s business model makes a positive contribution to the pressing socio-political challenges of housing shortages and climate protection.
Vonovia aims to be an attractive employer for its employees, ensuring equal opportunities and supporting staff members in their personal and professional development.
Vonovia manages a housing stock of around 485,000 of its own apartments in almost all of Germany’s attractive cities and regions. It also manages a portfolio of around 40,000 units in Sweden and approximately 21,000 in Austria.
The total fair value comes to around € 83.9 billion, with net assets based on the EPRA definition coming to approximately € 38.1 billion (European Public Real Estate Association: EPRA). In addition to its own apartments, Vonovia manages around 71,400 apartments for third parties. This makes Vonovia one of the leading residential real estate companies in Germany, Austria and Sweden, albeit with a low market share of around 2.0% in Germany due to the highly fragmented nature of the market.
Vonovia’s roots and those of its predecessor companies extend back into the 19th century and lie in not-for-profit housing and housing for factory workers. This applies to Germany, and also to Austria and Sweden. Consequently, today’s strategic direction is consistent with the company’s roots.
Even back then, the aim was to provide good-quality, modern and affordable homes, in some cases using innovative concepts. Many of the housing developments and neighborhoods built in that era were model projects of the time and are now covered by preservation orders.
Living in what were known as “workers’ settlements” was about much more than just affordable living space. It was also about living in a social network with one’s colleagues and their families. The approximately 780 neighborhoods (including Deutsche Wohnen) that the company has today are one of Vonovia’s USPs and a focal point of the answers to the megatrends facing us.
Via the non-profit company GEHAG, which was established in 1924, the Group has properties that are exceptional examples of architectural history from the Bauhaus and expressionist movements. These included new housing concepts that helped to shape the idea of a neighborhood and were even listed as UNESCO world heritage sites. Examples include the “Hufeisensiedlung”, “Wohnstadt Carl Legien”, “Weiße Stadt” and “Ringsiedlung Siemensstadt” developments.
The real estate development business and the property management business in Austria operate under the established BUWOG name. In Sweden, Vonovia operates under the name Victoriahem.