History | Vonovia

1918 to 1945: The first decades of the predecessor companies

Three lines of development constitute the foundation of Vonovia SE: The Gemeinnützige Aktien-Gesellschaft für Angestellten-Heimstätten (GAGFAH), founded in 1918, the first railway housing companies (from 1918) and the housing companies of Vereinigte Stahlwerke AG, founded in 1926. They all had two things in common:
On the one hand, their aim was to create housing for their target groups – employees, railway workers and workers. On the other hand, they were non-profit organizations: The companies adhered to certain social criteria in the provision and management of housing and received tax advantages in return. During the period of National Socialism, the focus was on the armaments economy: Support was given above all to buildings that served the political goals of the regime.
To a certain extent, Vonovia's predecessors employed foreign workers, mainly from the Netherlands. As a result of the bombings during the war in 1945, around 3.6 million houses and thus a large part of the housing stock in Germany had been destroyed.

Growth, crises and reorientation from 1946 to the 1990s

The reconstruction of Germany was an enormous challenge – not just for the construction industry. Until the 1970s, Vonovia's predecessor companies grew primarily thanks to the expansion of social housing construction and new industry impulses such as condominiums and satellite towns. In the mid-1970s, the housing shortage of the post-war period was considered officially over. International problems such as the oil crises led to negative developments in the global economy – and thus also in Germany, where unemployment figures rose. The problems had an impact on the predecessor companies, which had to reorient themselves and consequently focused their business on administration and maintenance. In late 1989, an important change for Vonovia's predecessors occurred with the abolition of the non-profit status for housing companies. The housing market experienced a surge of innovation: A construction boom ensued in the new federal German states, and the predecessor companies expanded their range to include residential services.

2000 to today: The path to becoming a housing service provider

Around the turn of the millennium, international investors changed the German real estate market. Deutsche Annington and its owner Terra Firma acquired the railway housing companies in 2001 and became the largest German housing company in 2006 with the takeover of Viterra AG.
In 2004, GAGFAH passed into the ownership of the investor Fortress. Deutsche Annington and GAGFAH took over numerous housing portfolios throughout Germany. Deutsche Annington reorganized its internal structures, which, however, led to tenant complaints due to unsatisfactory services, among other things.
Following successful countermeasures, in particular with the establishment of its own craftsmen organization, the company went public in 2013. GAGFAH also struggled with negative headlines, but was also able to counteract this.
By 2014, the private equity companies Terra Firma and Fortress had withdrawn as owners. In 2015, following the merger of Deutsche Annington and GAGFAH, the company was renamed Vonovia. Today, the company regards itself as a home service provider and also operates at a global level.

New markets: Finding a home in Europe

In 2017, the company stepped onto the European market: Austrian company conwert, which owns 24,500 residential units, became Vonovia SE’s first foreign subsidiary. The following year, it was joined by BUWOG, also based in Austria, which owns 49,000 residential units. Vonovia was also able to secure a share of the market in Sweden: Victoria Park became a Vonovia subsidiary in 2018, followed by Hembla in 2019. Through these acquisitions, Vonovia is also making sustainable investments in affordable housing in other European countries.

Finally, in October 2021, the company successfully acquired Deutsche Wohnen, a development welcomed by the management of both companies. Following the takeover, Vonovia now owns more than 541,600 residential units in all attractive cities and regions of Germany, Sweden and Austria. With the combined forces of Germany’s two largest residential real estate companies, Vonovia and Deutsche Wohnen, and its subsidiaries abroad, Vonovia SE is striving to actively address the challenges faced by the housing market in a responsible way – first of all by focusing on protecting the climate and creating new, affordable housing.

Milestones

1918-1933

1933-1945

1946 - 1960

1961 - 1973

1974 - 1989

1991 - 2000

2001 - 2010

2011 - 2016

2017 – 2021

Formation period of the predecessor companies

After the First World War, Germany was faced with a housing shortage. The predecessors GAGFAH, Eisenbahnergesellschaften and Vereinigte Stahlwerke set themselves the task of creating affordable housing. Conditions such as inflation and the economic crisis of 1929 rendered their activities increasingly difficult.

The years of National Socialism

Reorganization, name change, adaptation to the requirements of the regime, little growth up to the discontinuation of construction: The period of National Socialism and the Second World War presented Vonovia's predecessors with great challenges.

Reconstruction in the truest sense of the word

After the collapse and capitulation of Germany in 1945, the housing market suffered greatly. Initially imposed by the Allies, the controlled economy was followed by a renewed state framework for housing construction in East and West Germany. Urban landscapes changed and the housing industry increasingly favored a retreat into the private sphere.

New ideas emerged from housing shortage

Despite an enormous amount of construction work – in which Vonovia's predecessors also played a part – the housing shortage remained one of the central problems in the Federal Republic. New housing concepts emerged during the second decade of the economic miracle: Satellite towns in East and West as well as high-rise housing estates on the outskirts of cities represented the spirit of modern living.

From boom to turnaround

With the end of the housing shortage in 1973/74, the strategies of Vonovia's predecessors changed following the construction boom. Preservation and modernization were the main priorities. In addition, some of Vonovia's predecessors underwent organizational changes. It was only with the abolition of the non-profit status for housing companies in 1989/90 that a further far-reaching change took place that impacted the entire sector.

Dynamization of the market

After the non-profit status for housing companies was abolished at the turn of the year 1989/1990, the market started to move. The predecessors of Vonovia responded to this development with expanded services. Mergers changed the market and created the first housing companies of supra-regional importance.

Private equity dominates the sector

The privatization of the Federal Railway assets paved the way for international investors into the German housing market. In the years to follow, a rapid cleansing of the market prompted the emergence of fewer large housing companies. The profitable sale of homes was often the strategic focus of Vonovia's predecessors.

Vonovia is born

At the beginning of the 2010s, satisfaction among many tenants had plummeted. Vonovia's predecessors responded by adapting their strategies and improving their contact with their customers. Private equity firms increasingly withdrew. This development, together with takeovers and mergers, led to the creation of Vonovia.

Vonovia continues to perform well

The housing market is affected by a number of new challenges. For example, ways to combat climate change are urgently needed, while at the same time many places suffer from a shortage of apartments. As a major residential real estate company, Vonovia is taking responsibility and investing in sustainable climate protection solutions. At the same time, however, the company wants to continue to build new housing and offer its tenants affordable homes. In order to optimally tackle these challenges, Vonovia is focusing on merging with other companies and expanding its portfolio in other European countries – because large projects and innovations can be implemented more quickly by working together.

Company's history

All

1918 - 1933

1933 - 1945

1946 - 1960

1961 - 1973

1974 - 1989

1991 - 2000

2001 - 2010

2011 - 2016

2017 – 2021

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About us

As Germany’s leading residential real estate company, we provide homes to over one million people. We also create livable neighborhoods, invest in climate-neutral housing stock and are an employer that offers future security.

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