Vonovia won’t increase Berlin rents at this time
Vonovia is refraining from increasing rents for its 40,000 apartments in Berlin for the time being. CEO Rolf Buch, in an interview with the newspaper “Frankfurter Allgemeine Zeitung”, said that Vonovia “could still increase rents in Berlin later this year, according to the recently published rent index. But we’ve decided not to carry out any increases in Berlin right now.” Buch says the decision is to avoid an escalation in an already “extremely tense and emotional situation.” The Berlin Senate plans to freeze apartment rents for five years. Asked how his shareholders assess the renunciation of rental income, Buch replied that “I can’t run my business against public acceptance.” Stability is understood to be a vital asset. Berlin accounts for one tenth of Vonovia’s portfolio. “We’ll be able to compensate for this. And we are also heavily counting on foreign investments in our business.” Acquisitions in Germany, however, would not be ruled out “if the price is right.”
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