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Germany's largest real estate company, Vonovia, has reported a net profit of EUR 3.41 billion (USD 3.98 billion) in the first nine months, rebounding from a loss of EUR 592 million in the same period last year. The profit growth was primarily driven by the upward revaluation of its extensive apartment portfolio. CEO Rolf Buch highlighted that the company is witnessing rapid growth after three years of stagnation. The results signal a broader recovery in Germany's real estate market following one of the country's most challenging property crises in decades.
Vonovia, Germany's largest real estate group, has returned to profitability in the first nine months of the year, recovering from one of the worst property market downturns the country has faced in decades. The company posted a net profit of EUR 3.41 billion (USD 3.98 billion), a sharp turnaround from the EUR 592 million loss recorded during the same period last year. Advertisement
The improvement in earnings was largely attributed to the upward revaluation of Vonovia's hundreds of thousands of residential units, reflecting the strengthening of property values in Germany. CEO Rolf Buch stated that after three years of stagnation, the company is now experiencing rapid growth similar to pre-crisis levels.
In recent years, Germany's real estate sector had faced significant challenges, including slowing rental growth and stricter regulatory policies affecting the housing market. However, the latest performance suggests a rebound, supported by increased investor confidence and improving market conditions. Vonovia's results also demonstrate the impact of asset revaluations in strengthening financial performance, even as operational growth continues to recover.
Analysts note that the company's strategic focus on maintaining and upgrading its residential portfolio has helped it navigate the market downturn. The renewed profitability may also provide Vonovia with additional flexibility to invest in further property acquisitions and renovations across its extensive portfolio, reinforcing its market position.
Source Reuters
5th Jun, 2025
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