Towards a new Pan-European Investment Platform for Affordable and Sustainable housing
Access to affordable and sustainable housing is a cornerstone of the European social model. However, overall investment in housing - including both public and private funding - has declined in many Member States and remains below the levels needed to boost supply and tackle housing exclusion. The Commission estimates the investment gap at around EUR 150 billion per year.
In this context, as part the European Affordable Housing Plan, the Commission will launch in 2026 a Pan-European Investment Platform for Affordable and Sustainable Housing to support the collaboration between public authorities and private investors in pooling resources and scaling-up investment in housing supply across the EU. The Platform will provide direct access to information about financing opportunities, best practices, case studies, and innovative approaches across Member States. It will help develop scalable and innovative financing models and promote project aggregation through a digital portal, an expert group, and voluntary national financing hubs. It will work in synergy with the European Energy Efficiency Financing Coalition (EEEFC), set up in 2024 to mobilise private finance in energy efficiency.
This section aims to present the main features of the Pan-European Platform on Affordable and Sustainable Housing which will be effectively launched in the course of 2026.
Housing is local. Opportunity should be European. Together with our key partners, the new Platform will connect local projects with Europe’s best expertise and investors. Let’s make affordable and social housing an opportunity. Let's turn investment into real homes.
Partners
Working together for better housing across Europe
The Platform will bring together a wide network of partners to support affordable, sustainable and decent housing. These include the European Investment Bank Group (EIB), international financial institutions such as the Council of Europe Development Bank, the European Bank for Reconstruction and Development (EBRD) as well as National and Regional Promotional Banks and Institutions (NPBIs).
These institutions are already directing substantial resources towards housing:
- The NPBIs which are members of the European Long Term Investors Association (ELTI) and the European Association of Public Banks (EAPB) have estimated they have invested EUR 75 billion in 2024 and aim to invest EUR 375 billion by 2029.
- The EIB Group has launched an Action Plan for Affordable and a Sustainable Housing, with the objective of increasing lending to the housing sector to more than EUR 4 billion in 2025 and further to EUR 6 billion in 2026 and subsequent years. This is expected to help to deliver around one million more affordable and sustainable homes by 2030. As part of the Action Plan, the EIB Group has launched a first-of-its-kind EUR 400 million HousingTechEU initiative to support mid-cap and large companies in the EU housing market.
- The Council of Europe Development Bank (CEB) has social and affordable housing as a key focus sector and works closely with public authorities, partner financial institutions, municipal companies and other types of housing providers, to create durable solutions for no/low-income persons and other vulnerable populations and for targeted middle-income groups.
- The EBRD has launched its Real Estate Strategy for 2025-29, which places affordable housing at its core, aiming to align housing development with economic growth and sustainability objectives. Building on its strong private sector focus and mobilisation capacity, green and transition mandate, and deep local expertise in Central and South-Eastern Europe, the EBRD combines finance, policy engagement, and technical assistance through a distinct cross-sectoral model to deliver tailored public and private solutions that address affordable housing needs across diverse income groups.
A dedicated interactive map will show the resources available in each Member State, including the financial instruments offered by these partners, making it easier for project promoters to identify where they can find the right support.
These institutions will also play a crucial role in the Platform by providing their expertise, for example, on innovative financing schemes, including those leveraging EU funds.
Get funding
The EU is already mobilising strategic funding to support social, affordable and sustainable housing. There are a number of EU programmes to boost financing and technical advisory in this area. In 2024, the European Commission compiled a toolkit on housing showcasing the use of EU funds for investments in social and affordable housing and associated services. The EU Funding & Tenders Portal can provide a first glance on available funding opportunities.
Cohesion policy under shared management plays an important role – making housing more green, resilient and affordable.
Prior to its mid-term review in 2025, Cohesion policy - through the European Regional Development Fund (ERDF), the Cohesion Fund and the Just Transition Fund and Interreg – had already planned EUR 7.5 billion for energy efficiency of housing stock and social housing for vulnerable groups over the 2021-2027 programming period. Together with the national allocations, the total planned support to housing is EUR 10.4 billion. The mid-term review Regulation (EU) 2025/1914 of Cohesion policy gives flexibility to Member States and regions to allocate funding also to affordable housing on top of the EUR 7.5 billion already planned and provides financial incentives to Member States and regions who propose by end 2025 to reprogramme funds towards housing. Additionally, the Commission prepared together with the European Investment Bank a new financial instrument model for housing aiming to help Member States to leverage Cohesion policy funding with other resources. While the mid-term review will be completed in early 2026, the flexibility to fund affordable housing including the possibility for higher EU co-financing will remain in place until 2029/30, enabling further re-programming in housing. An increase in amounts for housing is already visible and is expected to continue through the end of the programming period.Details and examples of projects are available in story how cohesion policy supports housing at the Cohesion open data platform.
Furthermore, the European Social Fund + (ESF+) also finances a number of activities for a total of EUR 4.4 billion. It includes upskilling of service providers working with homeless people, counsels to tackle indebtedness, and support for housing retention schemes. It also supports operations fighting against homelessness, including measures related to food and material support, access to care and healthcare services, counselling and community activities.
In addition to support under shared management, the European Urban Initiative directly supports urban municipalities in creating innovative solutions to address urban challenges to be tested in real urban settings (including housing-related ones), for a total of EUR 395 million under ERDF. Examples of such solutions are available on the website: EUInnovative actions projects
Project examples
Croatia
As a result of the mid-term review of Cohesion policy, Croatia will expand its housing stock for affordable rentals in urban areas for specific groups of population who cannot afford homes despite their earnings. ERDF support of EUR 15 million will be leveraged through risk-sharing loans managed by the national promotional bank HBOR. A part of the loans may be written off upon the fulfilment of criteria linked to New European Bauhaus principles.
Slovakia – Affordable housing for people experiencing homelessness
The project, carried out by De Paul, aims to support the inclusion of people experiencing homelessness by offering personalised support through social support workers, corresponding to the individual’s specific, identified needs. It provides active search for affordable housing, social interventions for people experiencing homelessness and direct support from a social worker for housing. Overall ESF+ support: EUR 700 000
Greece - Rock the Block
The project Rock the Block addresses unmet housing needs though interventions at the level of multi-residence blocks (‘Polykatoikia’) in Egaleo (Greece), rather than individual households. It implements and tests an integrated approach combining physical transformations, communities of care, and institutional protection. Physical transformations involve investments to improve the green, digital, aesthetic, functional, circular and inclusive aspects of housing. In the project neighbourhood community-building and upskilling is enabled by a newly established ‘Co-living Hub’ fostering neighbourhood communities of mutual support. In parallel, a municipal ‘Housing Office’ provides institutional protection and advisory services, ensuring residents benefit from coordinated guidance and support. European Urban Initiative - overall ERDF support: EUR 3.3 million.
Estonia - SOFTacademy
In Estonia, SOFTacademy project is developing a new engagement model for urban governments to accelerate energy efficient renovation of old prefabricated multi-storey apartment blocks, located in Mustamäe district, Tallinn. The model entails collaborative partnering with housing associations to revitalise neighbourhoods using standardised prefabricated elements for both buildings and their surroundings. For example, insulation panels and new windows are manufactured off-site as prefabricated modules, then transported and installed on-site, reducing renovation time and enabling residents to remain in their homes. Housing associations play a crucial role by contributing to innovative, sustainable solutions and actively participating in the planning and design process. The project fully aligns with the New European Bauhaus concept. European Urban Initiative – overall ERDF support: EUR 4.9 million.
Slovakia - Dostupný Domov
‘Dostupný Domov’ is one of Slovakia’s most innovative examples of how financial instruments can deliver affordable rental housing with real social impact. Supported through a capital investment by Slovak Investment Holding (SIH), using ERDF resources together with the resources of commercial bank Slovenská sporiteľňa, its subsidiary and foundation, the initiative has created 412 apartments for more than 1,200 people across 13 Slovak cities. Integration of diverse social groups is a core part of its model, with around 65% of all tenants from vulnerable or disadvantaged groups. In terms of funding, the project has so far been supported by €25 million in programme contribution (ERDF plus national co-financing). Recognised for its strong social impact and innovative use of EU financial instruments, the initiative received the FI-Compass Showcase Award 2024.
France - Zéro Bidonville
The project is carried by Association Quatorze in Montpellier (France). It aims at reducing homelessness and improve the living conditions of people residing in informal settlements by providing tailored support and long-term housing solutions. It provides immediate social assistance, access to essential services and structured pathways to stable housing in the long-term. Overall ESF+ support: EUR 560 000
The Recovery and Resilience Facility accounts for the largest single fund dedicated directly to affordability and availability, with EUR 19.6 billion for housing measures across 20 Member States, of which about EUR 6.3 billion are grants and EUR 13.3 billion are loans. In addition, the RRF supports reforms that complement investments to increase access to decent and affordable housing. Those include among others, legislative changes to accelerate permitting and improve procedures, setting up affordable and social housing schemes and rules including financing instruments, and regulatory changes in taxation to address distortions in the housing market.
The InvestEU Fund has mobilised around EUR 7 billion so far of investment across the EU, in the area of social, affordable and sustainable housing. To date, 8 InvestEU Implementing Partners are deploying or planning to deploy debt and equity products to support social, affordable and student housing under the Social Investment and Skills Window: the European Investment Bank (EIB), the European Investment Fund (EIF), the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), Cassa Depositi e Prestiti (CDP), Instituto de Crédito Oficial (ICO), Bank Gospodarstwa Krajowego (BGK), Caisse des Dépôts et Consignations (CDC). Implementing Partners are also supporting energy efficiency for households under the Sustainable Infrastructure Window. Finally, innovation, i.e. technology and services, in the sector is supported with financial products under the Research, Innovation and Digitalisation Window.
Projects - InvestEU Fund
The Council of Europe Development Bank (CEB) is providing EUR 31 million loan to Sostre Civic SCCL, a social non-profit housing cooperative developer, to build over 350 social housing units in the region of Catalonia (Spain) to support citizens unable to afford ownership or rental market prices. Around 25% of the dwellings will be reserved for socially and economically vulnerable people such as those with reduced mobility, intellectual disabilities or women victims of gender-based violence. More info: CEB to finance over 350 cooperative housing units in Catalonia, Spain | CEB
Cassa Depositi e Prestiti (CDP), thanks to the InvestEU guarantee, is deploying an equity-based Fund-of-Funds (Fondo Nazionale dell’Abitare - FNA) of EUR 100 million to support investments in social affordable housing across Italy. The equity vehicle brings in local stakeholders, such as banking foundations, as co-investors in regional real estate funds, making it a locally grounded and scalable model. More info: FNA - Fondo nazionale dell'Abitare
The Instituto de Crédito Oficial (ICO) implements an intermediated equity financial product under the Social Investment and Skills Window of InvestEU. This product aims to contribute to investments in social infrastructure, notably in affordable social housing by investing through equity funds. These funds invest in companies and project promoters which deliver the dwellings for the eligible recipients. More info: Invest EU social and affordable rental housing - ICO_EN
The InvestEU Advisory Hub complements the fund by providing advisory support and technical assistance to help build pipeline of investment projects. Project promoters can benefit from wide range of support, including project structuring, financial modelling, feasibility studies and market studies. Several advisory partners (EIB, CEB, EBRD, CDP) are active in the social and affordable housing sector.
Projects - InvestEU Advisory Hub
For instance, the EIB Advisory through the European Local Energy Assistance (ELENA) supports private and public bodies, including local authorities in preparing-efficient residential renovation projects, thereby facilitating sustainable investment. The EIB and CEB have been providing technical assistance to national and local authorities to strengthen housing strategies and develop pipelines of investment projects in several Member States, including Czech Republic, Latvia, Croatia, Slovenia and Portugal, and CDP provides advisory support to municipalities and project promoters in Italy. At the same time, project promoters can benefit from EIB’s (under InvestEU Advisory Hub and the European PPP Expertise Centre (EPEC) and EBRD’s expertise on public private partnerships.
In 2024 and 2025, the Council of Europe Development Bank (CEB) commissioned market studies to assess the social sector infrastructure investment needs in 12 European Union (EU) countries: Belgium, Estonia, Finland, Ireland, Germany, France, Italy, Latvia, Lithuania, the Netherlands Poland and Spain - leading to the production of nine country-specific, technical documents.
LIFE supports housing related projects (EUR 138 million so far). For instance, the LIFE Clean Energy Transition sub-programme supports amongst other one-stop-shops for energy renovations, skills development, and actions to tackle energy poverty and poor housing conditions. It also facilitates the uptake of industrialised energy renovation solutions, provides project development assistance for energy renovations in social and public housing, offers technical support to cities and fosters investments.
Projects highlighted
Croatia, Estonia, Hungary, Italy, Portugal, Slovenia, Spain - Home Renovation Roadmaps to Address Energy Poverty in Vulnerable Rural Districts (Renoverty)
The Renoverty project funded by the LIFE Clean Energy Transition sub-programme has supported capacity building to foster energy efficiency building upgrades in the Central and Eastern Europe (CEE), Southeastern Europe (SEE), and Southern European (SE) countries. It has set the methodological and practical frame to build renovation roadmaps of vulnerable rural districts in a financially viable and socially just manner, thanks to the development of seven pilots in the each of the targeted countries. Strategically, the project contributes to minimize logistical, financial, administrative, and legal burdens caused by a complex and multi-stakeholder home renovation process and ensure that building retrofits consider the social dimension by incorporating security, comfort, and improved accessibility for citizens to further improve the quality of life of the vulnerable population. Overall LIFE CET support/EU co-financing EUR 1 925 744.
Horizon Europe is also a key contributor (EUR 540 million so far) to research projects benefitting housing, including the New European Bauhaus (NEB). In this regard, the recent New European Bauhaus Facility 2025-2027 fosters the development and scaling up of innovative solutions for the transformation of neighbourhoods to become not only sustainable, but also inclusive, accessible and beautiful. The available New European Bauhaus tools are intended to help plan, design and conduct projects following the NEB values and working principles.
The Public Sector Loan Facility (PSLF) can support a wide range of investments, including investments in (social and affordable) housing projects in regions most affected by the climate transition, combining loans from the European Investment Bank (up to EUR 6-8 billion) with EU grants (up to EUR 1.3 billion).
Project
In Sweden, the PSLF already provides support to the city of Skellefteå to establish 750 new sustainable affordable homes in a context where the city is at the core of an industrial transformation, with the establishment of a new battery industry and the transformation of traditional industries. Total investment EUR 142 million, with PSLF grant component EUR 11 million.
The Single market programme (SMP) supports the Affordable housing initiative.
Projects
European Affordable Housing Consortium (SHAPE-EU)
The European Affordable Housing Consortium (SHAPE-EU) has facilitated, over 2022-2024, local industrial partnerships involving SMEs, public, social, and cooperative housing providers, public authorities, and other relevant actors that engaged in renovating or constructing 20 lighthouse districts. They paid particular attention to innovative approaches, like smart and circular technologies, engagement models for tenants, and multi-stakeholder partnerships.
Affordable Housing Initiative European Partnership (SHAPE-II)
The Affordable Housing Initiative European Partnership (SHAPE-II) is the second phase (2024-2026) of SHAPE-EU. It is a tailored Accelerator Programme to provide organisations across Europe guidance on technical and financial solutions, mentorship, and opportunities for peer-to-peer learning.
Housing-related reforms and investments are also facilitated by the Technical Support Instrument (TSI), which has an annual call for requests for support. Acting in complementarity with RRF and cohesion policy funds, the TSI can support Member States in the design and implementation of housing reforms and facilitate exchange of expertise and good practices across the EU.
Looking ahead, the Social Climate Fund is set to provide support to vulnerable households from 2026 to 2032. The fund specifically addresses impacts of the Emissions Trading System covering buildings (and road transport) - ETS2. Investments will support vulnerable households and households in energy poverty in coping with the possible price increases emerging from ETS2. In their Social Climate Plans, Member States can support investments in building renovations, promote the access to affordable housing, including social housing and contribute to the decarbonisation of heating, cooling and cooking systems, as well as by integrating renewable energy generation and storage, including through renewable energy communities, citizen energy communities and other active customers to promote the uptake of the self-consumption of renewable energy.
Get connected
Launched in April 2024, the European Energy Efficiency Financing Coalition aims to substantially increase private financing in energy efficiency, supporting the implementation of the Energy Efficiency Directive and the Energy Performance of Buildings Directive and ultimately contributing to the EU’s energy and climate objectives. It brings together the European Commission, the 27 EU Member States, financial institutions and industry, and combines EU-level action with work streams tailored to the national contexts through National Hubs.
One of the work priorities is to discuss and propose measures to mobilise energy efficiency investments in the real estate sector, including residential, for a more sustainable building stock.
Fighting homelessness is also central for the EU. The 2021 Lisbon Declaration launched the European Platform on Combatting Homelessness (“the Platform”) to work towards the eradication of homelessness and to promote policies based on a person-centred, housing-led and integrated approach. In particular, the Platform aims to support mutual learning for policymakers and practitioners, strengthen evidence and monitoring on homelessness, and promote access to funding through a dedicated working group co-chaired by the European Commission and the Council of Europe Development Bank.
National Hubs
In the context of the Platform, Member States are encouraged to establish, where relevant, voluntary National Financing Hubs, gathering public and private stakeholders, enabling EU action to be grounded at local level. Member States can also draw on the national hubs set up in the framework of the European Energy Efficiency Coalition.
Expert Group
Experts on Housing Finance will support the Platform by identifying effective financial models for affordable, sustainable and decent housing, leveraging on national and EU funds, public and private investments. In the field of energy efficiency and building renovation, the European Energy Efficiency Financing Coalition, set up in 2024 to mobilise private finance in this area, will cooperate closely with the Expert Group to ensure synergies and maximise impact.
Learn
The Platform will develop a knowledge base to help public authorities, project promoters, and other stakeholders navigate EU housing funding and rules.
It will include support material and webinars to learn about financing, policy, and implementation.
The knowledge base will make it easier to plan, fund, and deliver housing projects efficiently, while promoting good practices and peer learning across Europe.