EIB Group doubles its financing to €6 billion for homes contributing to the European Commission’s Affordable Housing Plan

The European Investment Bank (EIB) Group will be doubling its finance for homes as part of the European Commission’s housing package. The EIB Group has substantially increased financing to support affordable and sustainable housing in line with the Commission’s plan, primarily focusing on innovation, renovation and new builds. This will be further increased next year, extending EIB financial and advisory support across all Member States and leveraging European Union funds.

EIB Group President, Nadia Calviño said: “We are stepping up investment in housing to 6 billion euros in 2026, boosting innovation, renovation and new building projects across the EU.”

The Commission’s housing package includes the first-ever European Affordable Housing Plan, alongside a dedicated strategy for the home-construction sector and revised state-aid rules to enable Member States to support investments in affordable housing, reflecting broader shifts in European economic and policy priorities. The EIB Group will work in close cooperation with the Commission to help translate the plan’s ambitions into concrete investments on the ground.

Key elements of the EIB Group’s contribution to the Commission’s housing package announced today include:

• €400 million Housing TechEU initiative: This programme  delivers vital innovation finance under the Commission’s Housing Construction Strategy, fostering new construction technologies and scalable housing opportunities.
• Pan-European Investment Platform: The EIB Group and the Commission are working with national promotional banks to develop a platform to connect investors with housing projects. The platform, which builds on the EIB Group’s existing housing web portal, will be a hub for affordable and sustainable housing investments, knowledge and case studies.
• Co-financing and leveraging EU-funded investments: The EIB Group will work directly with Member States, cities and housing providers, and indirectly through partnerships with national promotional banks and institutions (NPBIs) and commercial banks, to help mobilise financing for affordable housing– a key goal of the EU plan.
• Innovative financial instruments: Through its advisory unit, the EIB Group has co-developed model instruments with the Commission to blend EU cohesion grants with EIB Group and other public and private financing for affordable housing. The EIB Group has also contributed to discussions on revising state-aid rules to enable greater support for public and private investments in affordable housing across Member States.
• Student housing feasibility study: As part of the new housing package, EIB Advisory will work with the Commission to identify opportunities for improving student housing across Europe.

EIB Vice President Ioannis Tsakiris, responsible for EIB housing policy: “The Commission’s Affordable Housing Plan marks a turning point for Europe’s housing agenda. By working in close partnership with the European Commission, the EIB Group is fully mobilised to support Member States with the financing, innovation and technical expertise needed to accelerate the delivery of affordable and sustainable homes. Through our three-pillar approach: innovation, renovation and new build, we are committed to helping cities, regions and housing providers translate this European ambition into million new homes for citizens who need it the most.”

The EIB Group has launched an Action Plan for Affordable and Sustainable Housing, designed to fully support the Commission’s objectives.The plan is structured around three pillars, which guide the Group’s financing and advisory work in a housing market long challenged by fragmentation and uneven delivery.

• Innovation: supporting new technologies, industrialised construction methods and digital options to make housing delivery faster, greener and cheaper.
• Renovation: enabling the large-scale upgrading and energy-efficient modernisation of Europe’s existing housing stock.
• New Build: financing the construction of affordable and sustainable homes in cooperation with national and local partners.

The three pillars form the backbone of the EIB Group’s contribution and ensure full alignment with the Commission’s housing package.

About the EIB commitment to strengthening Europe’s housing sector and Housing TechEU

The EIB Group is working closely with the Commission, national governments, cities, international financial institutions, national promotional banks and financial intermediaries to strengthen Europe’s housing sector by providing the finance and expertise needed to build more innovative, energy efficient and affordable homes. The EIB Group builds its affordable housing approach on three core priorities: support for innovative and sustainable housing construction techniques, renovation of Europe`s aging housing stock and building of new affordable housing.

To accelerate progress, the EIB Group has launched an Action Plan for Affordable and Sustainable Housing  aimed at increasing financing across Europe to more than €4 billion in 2025 and targeting €6 billion in housing lending in 2026, end-to-end support, and faster market solutions. As part of this Action Plan, the EIB Board authorized a first-of-its-kind €400 million HousingTechEU initiative to support mid-cap and large companies in the EU housing market to accelerate industrial, technological and construction innovation. This new funding will help develop new construction materials, machinery and engineering to improve the quality and lower the costs of housing, while boosting European innovation and competitiveness.

To make it easier for local authorities, developers, and communities to access support, the Group has worked with partners to develop the “More homes. Better homes” online portal, connecting housing stakeholders with the advice, funding, and financing they need. This web portal was endorsed by the European Commission as a first step towards the Pan-European Investment Platform. This story is part of our European business news coverage.

For broader context on how housing policy, financing, and regional developments are evolving across the continent, explore our European News Coverage.