Due to the high inflation and the rise in building interest, Vonovia is discontinuing its planned new construction projects.
(Photo: dpa)
Dusseldorf The real estate giant Vonovia is pulling the ripcord because of the rising construction costs and interest rates and stopping all new construction projects planned for 2023. “We will not have any new construction projects starting this year. Inflation and interest rates have risen enormously and we cannot close our eyes to that,” Vonovia CEO Daniel Riedl told the Westdeutsche Allgemeine Zeitung. Plans in Berlin and Dresden are particularly affected.
“For properties that we were previously able to offer for twelve euros per square meter without rent, we would now have to go towards 20 euros in order to recoup our costs of 5000 euros per square meter,” said Riedl. These rents are “completely unrealistic” in large parts of Germany.
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