Fair Values

Major market developments and valuation parameters that have an impact on the fair values of Vonovia are assessed on an ongoing basis. On the one hand, high financing costs mean that real estate values are coming under pressure. On the other, reduced new construction activity, the need for homes in the short and medium term due to migration, and demand among households that were previously setting their sights on the home ownership market are translating into further rises in demand for housing and therefore increasing rent levels.

There is currently no sufficient general transaction evidence available to assess the impact on the development in real estate values. In spite of there being no significant transaction volume, Vonovia believes, on account of dedicated market contacts in relation to its own portfolio, that it is appropriate to carry out a write-down as of March 31, 2023, resulting in a negative valuation result of €  –3,612.2 million (Q1 2022: € 404.8 million).

Buildings under construction (new construction/development to hold) were completed during the reporting period. A fair value measurement is performed for the first time when the properties are completed. This resulted in a valuation effect of € 15.7 million (Q1 2022: € 18.7 million) for the period from January 1 to March 31, 2023, with this valuation effect included in the aforementioned result.

The recognition and valuation of investment properties are explained in detail in the consolidated financial statements for 2022.