Real Estate: When 138,000 apartments become a political football: Vonovia's €23 billion risk
The Dax group is at the center of the political dispute over the socialization of residential units in Berlin. Why the group is nevertheless acting rather cautiously in public.
Vonovia, Germany's largest real estate company, is closely watching the Berlin state election on September 20, as the outcome may impact its significant presence in the city. The company owns around 138,000 apartments in Berlin, valued at €23.2 billion, and the city's government has been debating the possibility of taking large private housing companies into public ownership.
Despite the heated debate, Vonovia's leadership has taken a cautious approach, with CEO Luka Mucic opting for a low-key response to avoid alarming shareholders and potentially triggering a sell-off of Vonovia shares. The company's strategy may be influenced by the risk of a renewed vote on the issue, with a citizens' initiative planning to launch a referendum in early 2027.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
