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s Germany's largest residential real estate company, Vonovia is poised to ride the wave of a rebounding housing market. With chief executive Rolf Buch at the helm, the firm is charting a course for growth after navigating the turbulent waters of a sharp downturn. "We're emerging from this crisis ahead of many others," Buch declared during the unveiling of 2024 figures on Wednesday.

    The company's fortunes are closely tied to the demand for housing in metropolitan areas, where strong interest has driven up rents. In 2024, average monthly rent per square meter reached €8.01 ($8.73), a 3.5% increase from the previous year. Nationally, the average rent at year-end was €7.89 per square meter.

    Vonovia's financials reflect this uptick in demand, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rising 1.6% to €2.63 billion in 2024. The company is now setting its sights on a 30% boost in operating profit by 2028, targeting a range of €3.2 billion to €3.5 billion.

    In recent years, Vonovia has sought to generate more cash flow through asset sales as the commercial and residential property sectors struggled in Europe's largest economy. However, this strategy came at a cost, with the company forced to write down its property portfolio multiple times due to high interest rates deterring potential buyers. The result was a significant loss of nearly €6.8 billion in 2023, followed by a bottom-line loss of about €962 million in 2024.