Living at Fair Prices

As homes become increasingly scarce and general conditions deteriorate, we continue to focus on providing homes at fair and transparent prices, suited to every budget. 

Our rental prices are based on local rent prices, and, if available, on certified rent indices.  Across the Group, the average rent price came to € 7.74/sqm (in Germany € 7.63/sqm) in the 2023 fiscal year, which corresponds to an organic increase in rent of 3.8%. This is significantly below the rate of inflation, which averaged almost 6% in Germany in the past year. Index-linked rents, i.e. rents linked to inflation, make up just around 1% of our lease agreements. The average rent including ancillary expenses in our portfolio remains below 30% of the average disposable household income in Germany.   

We support regulatory intervention in the housing markets because we believe that it helps to ensure social balance and creates a stable business environment as a result. When letting, we always observe the applicable country-specific legislation. 

In Sweden, rents are generally set as part of a binding, consensual process involving negotiations between tenants’ associations and landlords. This means that prices are fixed. Increases tend to occur annually and after refurbishment to a higher standard. 

In Germany, the costs of energy-related refurbishments can be passed on in the net rent – within a specific framework. The government has limited companies’ ability to pass on costs to € 3/sqm (€ 2 in the case of rents under € 7/sqm). The resulting increase in the rent is balanced out for the tenants through a reduction in heating costs. In the 2023 fiscal year, an average of € 1.32/sqm in refurbishment costs was passed on. 

At Vonovia, we rely on comprehensive social management to guarantee living at fair prices and provide our tenants with a secure network. Our target is always to support people’s ability to pay so that they can stay in their homes and their homes remain affordable. As such, we offer individual support measures ranging from rent deferments and payment in installments to assistance with housing allowance applications and relocation assistance. A team of social managers who have been trained to assist with such matters are on hand to help. 

As part of our hardship regulations, we apply uniform standards based on those of welfare associations in the event of refurbishment work. These standards were developed in 2021 in collaboration with the tenants’ association and other residential real estate companies, and help to ensure greater reliability and transparency in cases of hardship. In recent years, we have been able to achieve a positive outcome in the vast majority of hardship claims and provide direct assistance to the affected tenants. 

Also still in place are our special vested rights for people aged over 70 and our active support for people who have fallen into payment difficulties as a result of the coronavirus pandemic. 

A key concern for Vonovia is ensuring that all people can access housing without facing discrimination in accordance with the German General Act on Equal Treatment (AGG) and fundamental human rights. 

In a pluralistic, democratic society, fair and transparent access to homes is essential. Our residential offerings and services are therefore low-barrier and generally accessible; we word our housing advertisements and rental contracts using neutral language to prevent discrimination.   

When processing housing applications, we take considerable care to ensure that our allocation procedures are transparent and fair. Allocating apartments in a socially mindful way helps to achieve stable social harmony and contributes to people’s well-being in our neighborhoods.   

Furthermore, we foster an open anti-discrimination culture that is actively supported and promoted by the company’s top-level management. Our multilingual whistleblowing channels, which are also available to all tenants, can be used to report suspected cases of discrimination openly or anonymously. The purpose of this is to ensure that our values are practiced in all aspects of providing a home – from the application to the tenancy itself to moving out.   

We aim to ensure that no one finds themselves at a disadvantage due to their social background or other personal characteristics. Housing is a human right, and we are committed to safeguarding this right for everyone.