Proposal requested for a directive to safeguard workers from ionising radiation-related hazards by the Commission.
Real estate giant Vonovia has announced ambitious plans to expand its housing supply in Germany, aiming to build up to 70,000 new housing units by 2028. This significant expansion is part of the company's strategic initiatives to meet the growing demand for affordable housing in the country.
To achieve this goal, Vonovia plans to reduce construction costs from approximately €5,000 per square meter to €3,500 or less. The company intends to do this through modular construction, bulk material purchasing, and faster permitting processes, supported by political initiatives.
In 2025 alone, around 3,000 new units are already under construction, indicating a strong start towards this ambitious target.
In addition to new builds, Vonovia is focusing on modernizing existing properties. The company aims to make 25% of its portfolio comply with its own VZ-Standard for energy efficiency by 2028. This includes energy-efficient upgrades such as solar panels, heat pumps, and façade improvements to meet stringent energy standards. This focus on sustainability aligns with Vonovia's Net Zero Roadmap, aiming for carbon neutrality by 2045.
Vonovia is also shifting its business model, with the Value-add, Development, and Recurring Sales segments expected to increase their EBITDA contribution from 9% in 2024 to 20–25% by 2028. The firm has engaged in strategic divestments, such as selling Deutsche Wohnen's senior care division for €380 million, to reinvest capital into higher-margin core housing projects.
Management changes are also underway at Vonovia. Outgoing CEO Rolf Buch has announced his departure at the end of 2025, to be succeeded by Luka Mucic from SAP and Vodafone. This change signals a continued focus on growth and expansion in residential services, project development, and the individual sale of apartments.
Overall, Vonovia’s development plans reflect a strong commitment to expanding housing supply rapidly and cost-effectively while integrating sustainable modernization and adapting its portfolio to evolving market demands in Germany’s residential real estate sector.
Vonovia's strategic initiatives extend beyond housing construction, as they also plan to increase the EBITDA contribution of their Value-add, Development, and Recurring Sales segments from 9% in 2024 to 20–25% by 2028, indicating a shift towards higher-margin business in the finance industry.
To achieve its target of building 70,000 new housing units by 2028, Vonovia is exploring various cost-reduction measures in the industry, such as modular construction, bulk material purchasing, and faster permitting processes, with support from political initiatives.
