Vonovia | Exclusive insight into the housing market

Socialization does not create new apartments, announces the boss of Vonovia. Thanks for the insights Luka Mucic, but nobody claims that. Photo: dpa/Sebastian Christoph Gollnow The largest German residential real estate group, Vonovia, no longer wants to build any new apartments in Berlin for the time being. Allegedly because of the lack of investment security that a possible socialization and a red-red-green city government would bring with it.

Now the figures for the group's third quarter show that sales of apartments and new construction have not been going particularly well over the last nine months. Here, the increased financing costs and interest rates had an impact on the highly indebted group. Just a few days ago, Vonovia lowered its growth targets and canceled investments. Its share price is currently at an all-time low, as noted by the German Tenants' Association. The compensation amounts envisaged in the capital in the event of socialization would currently even be compensation at market value. Isn't it the red-red-green firmament that encourages Vonovia to make threats?

In any case, boss Luka Mucic takes the new figures as an opportunity to announce once again: socialization does not create new apartments. Thanks for the insights Luka, but no one is saying that. The idea behind socialization is to make existing apartments affordable. This can be achieved, for example, if corporations like Vonovia, which collect their dividends through rental prices, no longer determine the rental market. At the end of September, the average rent at Vonovia rose by 3.5 percent compared to the same period last year. In general, however, it was 1.1 percent.

It is clear that socialization does not solve the problem of a lack of living space in various metropolitan areas. In order for people with low incomes to find an affordable apartment, a combination of legal requirements and new construction is needed, dear Luka. In the case of the latter, Vonovia hasn't made the herb fat for a long time. In 2025, the group built 2,090 residential units – nationwide. In Berlin alone he owns a good 130,000 apartments.

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