A Peek into Wiro Housing Company's Future Plans in Rostock Amidst Challenges
Wiro, a housing firm situated in Rostock, concludes a positive assessment of its operations. - Rostock's Wiro Housing Company has a Favorable Financial Report
Wiro, the leading housing company in Rostock, is set to tackle the city's tight housing market with more new construction projects. With the anticipated start of the Werftdreieck quarter outer development in 2025, the gears are turning for the construction of around 700 apartments [1]. Additionally, new construction projects for an extra 500 apartments are already underway. However, skyrocketing construction costs, soaring energy prices, increased interest rates, and an unpredicable future for social housing subsidies make new construction and renovation a tough nuts to crack [1].
In the fiscal year 2024, Wiro's management delivered a balanced to positive scorecard, reporting an annual surplus of €24.13 million [1]. The City of Rostock, their sole shareholder, pocketed €16.52 million. The equity ratio stayed solid at 28.2% [1]. Regrettably, no figures on the total investment volume in new construction and renovation were disclosed.
Slight Rent Increase
As of year-end 2024, Wiro managed a whopping 35,178 of their own apartments and 4,415 units for other owners in Rostock, giving them a market share of approximately 28% [1]. The average cold rent was €6.54 per square meter, marking a 3.5% year-over-year increase mainly driven by the rental of freshly built apartments [1]. Interestingly, the 2022 census determined an average rent of €6.70 per square meter for the city [1].
According to Ralf Zimlich, the chairman of the management board, Wiro's mission remains keeping their houses in tip-top shape, creating new homes, and providing affordable rents [1]. The vacancy rate stayed under one percent, and the churn rate was 8.5% [1]. Wiro reported a team of 680 employees, including subsidiaries [1].
As we move forward, it's worth noting that Rostock is active in urban development projects, which could impact housing scenarios. For instance, the Kesselborn Quarter Development is in the works, boasting a mix of residential, commercial, and recreational spaces with a community-centric focus [2]. This project, expected to be completed by 2028, includes neighborhood-owned parking garages and electric vehicle charging stations [2]. On the historical front, Rostock's housing development has been shaped by political policies, as witnessed during the construction of satellite towns during the German Democratic Republic era [3]. Lastly, the 18th Federal Congress on National Urban Development Policy, happening in September 2025 in Rostock, may offer insights into future urban and housing development strategies [1].
References:1. Official Wiro Housing Company Website2. Kesselborn Quarter Development3. History of Housing Development in Rostock
In light of the anticipated community-centric development of the Kesselborn Quarter and the potential impact on Rostock's housing scenarios, Wiro Housing Company might consider investing in vocational training programs for their employees, particularly in construction and real-estate sectors. This could ensure the company's business remains competitive, despite the challenges posed by soaring construction costs, energy prices, and interest rates. Moreover, the returning surplus in the fiscal year 2024 could be channeled towards financing these vocational training programs.
