Vonovia to Finish Berlin Projects but Shuns New Ones as Analyst Targets Slide
Published on 10/13/2026 at 17:31 | Editorial boerse-global.de
Vonovia will complete the roughly 1,000 apartments it currently has under construction in Berlin, yet the Bochum-based landlord has no appetite for adding to that pipeline. Chief executive Luka Mucic told Handelsblatt that future projects in the German capital will feature less prominently in the company's plans, while ruling out a blanket halt on building. Maintenance work and energy-efficiency upgrades will also continue as scheduled.
The cautious stance on new capital commitments reflects a changed interest-rate environment and elevated financing costs that have made fresh residential development harder to justify. Berlin remains Vonovia's single most important market, and the regulatory and political backdrop there has been a long-running source of friction for the sector.
Talks With Berlin's Left Party Collapse
Tensions around housing policy in the capital were on display Tuesday when a planned meeting between Mucic and Luigi Pantisano, the Berlin head of the Left party, was called off at short notice. The Left cancelled over a dispute about whether a journalist could attend. Vonovia disputed the account, saying it had not agreed in advance to press coverage. Both sides said they remain open to dialogue in principle.
Should investors sell immediately? Or is it worth buying Vonovia?
The standoff lands during a turbulent stretch for the stock. Vonovia shares are down 33 percent since the start of the year, with media reports pointing to interest rates and political debate over a possible expropriation of housing stock as drags on investor sentiment. The equity edged up 0.7 percent to EUR 16.52 in Tuesday trading, having changed hands at EUR 16.48 pre-market.
ODDO BHF Cuts Target, Keeps Outperform
Analysts are pressing for further steps to steady the ship. ODDO BHF lowered its price target for Vonovia on Monday to EUR 23 from EUR 25, according to media reports, while reaffirming its "outperform" rating. Analyst Neil Green highlighted investor frustration over the lack of share-price momentum and the rate backdrop, suggesting a disposal of assets worth EUR 1 billion as a possible lever to bring down debt.
Beyond the balance sheet, Vonovia is broadening its reach into services that sit outside pure portfolio ownership. At the EXPO REAL property fair just over a week ago, the group unveiled Veveus, a new brand bundling investment, asset, property and facility management for institutional owners and investors. Vonovia said it was already managing around 75,000 apartments for third parties at launch.
Investors will get their next hard look at operating performance on November 4, when the company publishes its interim report for the first nine months.
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