Berlin socialisation plan
Vonovia, Germany's largest residential landlord, presented its nine-month figures on Wednesday, 4 November 2026, while coalition talks in Berlin between Linke, SPD and Greens continued. The parties have agreed to socialise housing stock held by large property companies, which means compensating owners and moving the homes into common ownership. Stern.de reports that up to 16 billion euros in compensation would be paid for 160,000 apartments, while WirtschaftsWoche puts the political risk at about 138,000 apartments with compensation of only 20 to 40 percent of market value.
Industry response and valuation dispute
Mucic called the Berlin plans irresponsible and said the debate itself weakens confidence in property and investment.
The socialisation plans in Berlin are irresponsible, especially toward the people they are meant to protect.
According to stern.de, Mucic said a socialisation would not create a single additional apartment and that the approach is legally highly questionable. Der Tagesspiegel reports that he also referred to Chancellor Friedrich Merz, who told the government's investment summit in October that protecting property was the foundation of the market economy. Mucic put the shortage in Germany at about 1.4 million homes and said Vonovia offers Berlin apartments at an average of 8.40 euros per square metre.
We have to build more and invest.
Maximilian Fuhrmann of the Deutscher Mieterbund NRW argued that the compensation would match market value, noting that the group is worth about 14 billion euros on the stock exchange and carries 40 billion euros of debt. The Financial Times estimated Vonovia's Berlin holdings at about 20.4 billion euros, against compensation of 12 billion euros, which would mean a loss of 8.4 billion euros.
Rents and results
Adjusted operating EBITDA rose 3.3 percent to just under 2.19 billion euros in the first nine months, but the adjusted pre-tax result fell 3.5 percent and operating free cash flow dropped 34.1 percent. Rents in the comparable portfolio rose 3.8 percent, and local rent indices accounted for 2.3 percentage points, or about 60 percent of the increase. Modernisation added 1.2 points and new construction contributed 0.3 points. The average monthly rent across Vonovia's holdings reached 8.57 euros per square metre at the end of September, up 3.5 percent, while the German average was 8.41 euros, up 1.1 percent.
Construction and sales
Vonovia held 527,488 apartments in Germany, Sweden and Austria at the end of September, about 5,000 fewer than a year earlier, and its portfolio has shrunk by more than 12,000 units since the end of 2024. In the first nine months of 2026 the group completed nearly 90 percent fewer apartments for its own portfolio than in the same period of 2024, according to its nine-month reports. The company had already said at the end of October that it would reduce investment in its own stock, and new investment in energy-efficient renovation of third-party housing under its Manage-to-Green model is suspended for now. Property sales totalled about 900 million euros in the first nine months, but financing conditions have worsened since the Middle East conflict began, and interest rates rose again from early September, so sales processes are taking longer.
Guidance cut and CFO exit
In an ad hoc announcement in late October 2026, Vonovia lowered its rent growth forecast for 2026 to 3.5 percent from 4 percent and for 2028 to 4.5 percent from 5 percent. For 2026 it now expects adjusted EBITDA in the lower half of its previous range of 2.95 to 3.05 billion euros.
Chief financial officer Philip Grosse informed the supervisory board that he will not extend his contract, which runs until the end of 2027. Vonovia said it expects to announce a successor shortly, and Wirtschafts Woche called the timing of his departure a poor sign given the group's refinancing burden.