Vonovia Stock: New Construction Preferred!
Germany’s housing crisis has pushed the federal government to take action. A new round of subsidies, called EH55-Plus, will launch on 16 December 2025 to boost construction. The policy was shaped by ministers, coalition parties, and industry groups after months of debate.
Vonovia, the country’s largest residential landlord, now faces a critical moment. Political decisions in the coming year could determine whether the company ramps up building—and whether its stock price recovers.
The renewed EH55-Plus subsidies emerged from negotiations between the Federal Ministry for Housing, coalition parties (SPD, Greens, FDP), and lawmakers. Industry bodies like GdW, along with MPs from the SPD and CDU/CSU, also weighed in on funding levels and rules. Their goal was clear: reverse the slowdown in housing construction that has left Germany with a severe shortage.
Vonovia has long argued that new building is the only real fix for the crisis. Yet in recent years, the company pulled back on projects as rising costs made developments barely profitable. High materials prices and strict regulations created headwinds not just for Vonovia but for the entire sector.
Ruth Werhahn, Vonovia’s head of HR, entered the public debate by criticising broad rent controls as ‘blunt instruments’. Instead, she backed the government’s push to stop rent gouging while calling for protections focused on low-income tenants. Her stance aligned with the company’s broader message: Vonovia wants to be seen as part of the solution, pointing to its high tenant satisfaction scores as proof of responsible management.
Now, with subsidies on the way, the company’s strategy may shift. If market conditions improve, Vonovia could restart stalled projects. Investors are watching closely—its stock performance in 2026 may hinge on whether these political moves finally unlock construction.
The EH55-Plus subsidies arrive at a pivotal time. For Vonovia, they could mean a return to large-scale building if costs stabilise and rules become more predictable. The company’s next steps will show whether Germany’s biggest landlord can turn political support into actual homes.
Meanwhile, the policy’s success will depend on uptake from developers across the country. Without a surge in construction, the housing shortage—and the pressure on firms like Vonovia—will only grow.
