Strategy-Related Opportunities

Our growth continues to be based on our proven 4+2 strategy (Strategy). Based on the existing strategy, in 2025 Vonovia developed a new growth strategy (“Accelerate”) and initiatives that will generate future earnings potential.

In the area of “Return to Performance” the company is focusing on new opportunities in the core business that had been set aside in past years due to crisis conditions.

With a view to the expansion in company development and ongoing need to optimize construction costs, Vonovia is focusing on the “Design to cost” principle, among other things for its “Basic House” approach in order to build sustainable and affordable housing for different target groups. Emphasis is placed on new projects using serial modular timber (hybrid) construction. We reduce construction times and the implementation risk, and conserve resources, through efficient construction processes in development, e.g., the introduction of “Building Type E” approval (new initiative aimed at simplifying and reducing costs in the construction industry) and the use of sustainable, ecological building materials.

The expansion and optimization of Vonovia Technical Services (VTS) continues in order to ensure that refurbishment and maintenance are performed reliably and expertly by in-house skilled workers who have received special training. This system, in turn, means opportunities and earnings potential.

The “Accelerated tech-supported investments” category aims to expand and optimize investments along our climate pathway, which focuses on greenhouse gas-neutral operation of our portfolio by the year 2045. In this context, we see opportunities in cost-effective serial refurbishment, which uses an “all-in-one”system for the building envelope to complement, or replace, “conventional” modernization. This initiative’s potential lies in industrialized manufacturing, which translates to speed, reliable planning assumptions and favorable procurement conditions.

The heat pump cube is a “plug & heat” solution for buildings that will be fitted with heat pumps in the future. It provides an affordable, fast and standardized installation thanks to a high level of prefabrication, while offering additional potential with its scalable production. Combining this with an expansion in photovoltaics (PV) in particular will enable us to accelerate the heating revolution in our neighborhoods. Investments in modernization, serial renovations, heat pump cubes and PV expansion will add up to earnings potential and growth opportunities for Vonovia.

In “New Sources of Growth,” new business models along the value chain are being explored in order to expand existing business or cultivate new areas on in the third-party business.

Relevant opportunities are also arising for us in the establishment of a complete product portfolio relating to the expansion of renewable energies (Operate Energy), and higher market penetration along the value chain, from generation to storage and energy management to sale, e.g., landlord-to-tenant electricity.

The purchase of energy-inefficient buildings that have not yet been modernized (Manage to Green), their subsequent modernization and resale once their value has increased, are to be integrated into Vonovia’s business model as a new initiative. Company expertise from purchasing and experience in modernization will be used for this purpose. Vonovia’s business model is founded on its efficient management platform, which spans the entire housing lifecycle.

The management platform also serves as a basis for expanding business with third-party customers as part of growth initiatives. The objective is to gradually expand the range of services, starting with property management, so that the entire Vonovia platform can also be successfully offered to external property owners and investors in the future. This will result in greater capacity utilization of the management platform and opportunities for earnings potential by increasing the number of residential units managed.

Vonovia pursues acquisitions and international business as and when opportunities present themselves in light of the current options for returns and financing, and chooses those that create value. If overall conditions continue to improve, there is an opportunity for us to grow by resuming acquisitions and portfolio purchases, which means opportunities for scalable solutions and other synergies.