Residential real estate on the upswing: Vonovia benefits from new trends!

Residential real estate on the upswing: Vonovia benefits from new trends!

The mood on the German residential real estate market is showing the first signs of recovery after a long period of slack. Current data and survey results show that many market participants are optimistic about the future. Numerous players report that they expect an increase in transactions in the seven largest German cities in the next 12 months. These findings come from a survey by Cushman & Wakefield, which was carried out among 112 market participants.

What is particularly significant is that 86% of respondents expect increasing transactions in the largest cities. In addition, around 72% predict more activity in secondary locations. Another result of the survey shows that around 50% of market players are counting on increasing prices for both new buildings and existing properties in top cities.

Preferred asset classes and locations

In the survey by Cushman & Wakefield It was also found that 71% of those surveyed favor existing properties in major cities as the preferred investment class, while 60% find new buildings attractive. The most attractive locations for investments are clearly Berlin, Hamburg and Munich, where the real estate group Vonovia has a substantial portfolio.

The forecasts regarding rent development are also positive: 90% of market participants expect rent increases of at least 2.5% for new buildings in the top 7 cities. For existing properties, 74% expect similar increases.

Strategies to increase value

A key trend emerging in the market is the manage-to-core approach to upgrading properties, which is becoming increasingly popular. Vonovia, as a clear beneficiary of these market changes, benefits from a comprehensive platform strategy and its development know-how to drive the increase in value of its portfolio.

The current geopolitical climate, particularly the uncertainties following the conflicts in the Middle East, is increasing interest in defensive stocks with stable cash flows. Residential real estate continues to be considered a crisis-resistant asset class, especially with broad diversification and professional management.

In summary, it can be said that the recovery of the residential real estate market in Germany is still in its early stages, but there are already clear signals of positive development. The right strategies and location decisions like Vonovia's could prove extremely beneficial in the coming months.