Opportunities Arising From the Operating Business

Vonovia manages its housing portfolios throughout Germany using standardized, digital systems and processes (Strategy). Our management platform has been optimized as part of a step-by-step process in recent years and is now highly efficient and digital. The resulting earnings and cost savings potential are reflected in lower property management costs per residential unit, for example. Customer satisfaction has risen significantly over the same period. Together with the range of housing-related services and active neighborhood management, we offer our customers a service package that is extremely competitive on the housing market. We also believe that upgrading measures in our neighborhoods present us with an opportunity to improve our reputation. With our management platform, we are pursuing a business model that is scalable at any time, which makes it suitable for managing new portfolios that we add through acquisitions.

The company is continually forging ahead with improvements in operations and greater cost management for its craftsmen’s organization, VTS. The Value-add business offers customer-centric services that are closely related to the rental business. Innovative approaches, technologies and business models for enhancing customer satisfaction with additional earnings and knowledge potential could also arise here along the value chain.

With regard to approval processes and the efficient realization of construction projects, digitalized access to public administration services is key. The streamlining of administrative processes and the introduction of Building Type E in 2025 could accelerate, and have a positive impact on, Vonovia’s development and new construction business by allowing building permits to be approved faster. Digitalization opens up considerable development opportunities for the real estate industry and, as a result, also for Vonovia – in terms of both technology and process optimization. We are still making systematic investments in testing and expanding new technologies. Two of the areas we are focusing on are artificial intelligence and robotics.

We expect opportunities to arise from the systematic roll-out of concepts such as predictive maintenance, process automation, building information modeling (digital modeling of real estate projects), home automation (setting up smart information systems and interfaces at the level of the customer) and a closer digital connection to the customer. One key component for the implementation of our digital strategy is the “digital twin.” It maps all aspects of a building and, in the future, will mirror each of our buildings with all of their structural and technical features and systems, enabling optimum management.

Our personnel strategy facilitates the company’s change processes and growth strategy, which are rooted in a skilled, diverse workforce and motivated employees among other things. All in all, further opportunities could arise for Vonovia due to the HR strategy and as a result of our increased appeal as an employer, namely higher levels of production and lower staff turnover rates.