The European Investment Bank (EIB) and Berlin-based municipal housing company HOWOGE Wohnungsbaugesellschaft mbH have signed a €500 million unsecured credit facility to support the construction of around 3,200 new residential units in Berlin by 2029. This marks the largest single EIB housing financing in Germany over the past decade and aims to strengthen the supply of affordable, energy-efficient housing in the city.
At least half of the new housing units will be subsidised, ensuring improved access to affordable homes in one of Europe’s tightest housing markets. The project also places strong emphasis on sustainability, with all new builds required to meet high energy efficiency standards, contributing to Berlin’s broader climate goals and reducing long-term energy costs for residents.
The financing represents the first cooperation between EIB and HOWOGE and adds a key strategic funding source to HOWOGE’s diversified financing structure. It is also the company’s second framework agreement with a multilateral development bank and the largest loan transaction in its history, reinforcing confidence in its long-term growth and development plans.
EIB leadership highlighted that the investment will support not only housing construction but also job creation, economic activity, and improved living conditions in Berlin. The project is aligned with the European Union’s InvestEU programme and reflects the EIB’s broader commitment to promoting affordable housing, climate action, and sustainable urban development across Europe.
