Howoge secures €500m EIB loan for 3,200 new Berlin homes

The European Investment Bank (EIB) and Berlin's municipal housing company, Howoge, have agreed on a €500 mln unsecured loan.

EIB Howoge housing

This funding will help Howoge build approximately 3,200 new homes in Berlin by 2029.

This partnership aims to boost affordable housing in the German capital, with at least half of the new units being subsidised. The construction project also aligns with Berlin's climate goals due to its focus on high energy efficiency standards.

This marks the first collaboration between Howoge and the EIB, providing Howoge with a new strategic financing tool and supporting its sustainable growth. This is Howoge's second framework agreement with a multilateral development bank and its largest single loan transaction to date. The financing is backed by the EU's InvestEU program.

Howoge, a state-owned company of Berlin, manages around 82,150 apartments, making it one of Germany's largest landlords. It plans to expand its portfolio to about 100,000 units, primarily through new construction. Additionally, Howoge is involved in renovating and building new schools for the State of Berlin.

 Jörg Kotzenbauer, managing director of Howoge, said: “With the European Investment Bank, we are gaining a strong European financing partner at our side. Especially in times of tight housing markets, this sends a clear signal of social responsibility and long-term stability. At the same time, the partnership gives us access to favourable financing conditions, even in the current challenging market environment.”

Nicola Beer, vice-president of the European Investment Bank, said: “With this new partnership with Howoge, we are supporting the construction of thousands of new homes across Berlin – affordable, energy‑efficient and fit for the future. This project will help reduce energy bills for residents, boost growth and jobs, and strengthen the economic momentum of Germany’s capital. It is also the European Investment Bank’s largest financing for housing investment in Germany in the past decade – a clear signal of how seriously we take our commitment to backing more housing”.