Economic Environment and Market-Related Opportunities

Our business model is designed to take into account the megatrends that are relevant to us (climate change, urbanization, demographic change, technological advancements) that add up to positive developments in the company for the long term:

The effects of global climate change are already being felt. Our investment strategy along the climate pathway is underpinned by a reduction in CO₂ emissions and adaptation to irreversible effects, such as extreme weather events.

We anticipate that urban regions will continue to grow over the coming years. The ongoing slump in construction activity is likely to result in an even greater imbalance between the supply of and demand for homes in conurbations. Approximately 320,000 new residential units will have to be built every year until 2030. Urban housing shortages are being further amplified by migration patterns. Demographic changes and the trend toward more and smaller households are boosting demand for homes further; meanwhile there is a need for custom services, particularly for seniors, and vibrant, sustainable neighborhoods.

In a quest to master the current social challenges, policymakers are also seeking to improve overall conditions on the housing market. As soon as short-term solutions can be found to address this problem in terms of improved subsidy conditions and price developments, deregulation measures and the acceleration of approval processes, the appropriate opportunities will also emerge for Vonovia. We are advocating for these very solutions via our communication channels and stakeholder dialogue (for example, through our work in associations).