EIB and Belgian region of Flanders agree landmark €1.7 billion financing agreement to boost social housing

This article is published in association with European Investment Bank.

• Flanders and EIB agree €1.7 billion loan facility to boost availability of social housing in the Flemish Region; Ministers sign first tranche worth €700 million.
• Financing to support new construction of 6 350 social housing units and cover the energy efficient renovation of a further 10 100 units.
• The interventions will increase the availability of social housing, while also lowering energy bills for tenants, specifically middle- and lower-income households.

The European Investment Bank (EIB) has agreed a landmark financing deal with the Belgian Region of Flanders, to support the new construction and renovation of thousands of social housing units, improving the availability and lowering energy bills for tenants. The signature of a €700 million agreement With Ministers Weyts (Finance) and Bonte (Housing) in Brussels today, is the first tranche of a total financing package of €1.7 billion approved by the EIB’s board, marking the largest ever EIB operation in Belgium.

With the support of the approved €1.7 billion facility, the Region of Flanders will support local municipalities and cities in reaching their social housing targets. Flanders is aiming to build some 56 000 extra social housing units and renovate thousands of existing units to higher energy efficiency standards by 2042. The high-energy efficiency standards of the new constructions and renovations will also lower costs and energy bills, which is particularly relevant for low- and medium-income tenants.

“Our main mission is to finance projects that benefit European citizens and improve people’s daily lives. This partnership with Flanders will do exactly that.” saidEIB Vice-President Robert de Groot. “By supporting the building and renovating of thousands of homes, we are helping municipalities offer more people a quality, affordable and energy‑efficient place to live. Just last year, the EIB supplied a record €5 billion in financing for housing projects across Europe, and we’re proud to support the Flemish Region in their efforts to make sure that everyone can have a roof over their head.”

“We borrow to invest. Just like a Flemish family would take out a mortgage to build a house, the Flemish government borrows to build a lot of houses. And just like any Flemish family we look for the most advantageous loan – which we found at the European Investment Bank. By working through the EIB, on this first tranche of 700 million euros we will save about 35 million euros in interest costs.” said Flemish Minister of Finance Ben Weyts.

“Flanders is currently facing a genuine housing crisis. There’s a huge shortage of affordable rental housing, and rents are skyrocketing. As a Minister, I can only applaud Europe’s enormous commitment to affordable housing. Thanks to the €1.7 billion in preferential loans from Europe that we can now count on in Flanders, we can truly boost social housing,” explains interim minister Hans Bonte. “Construction costs have risen dramatically in recent years. By using this budget to invest in preferential loans with a 2% interest subsidy for housing associations, we will be able to build and renovate more social housing, faster. This will also help us reduce the energy bills of vulnerable families.”

The EIB-financed initiative of the Flemish Region responds to the demand for social housing from middle- and lower-income households. By providing long maturity loan terms, the Bank enables a greater number of housing units to be built more rapidly, thus helping relieve the pressure faced by this sector in these difficult times. Apart from helping to lower energy bills, the renovation schemes also align with Europe’s clean energy transition, which aims to increase the bloc’s energy independence and security of energy supply

Background information:

The European Investment Bank (EIB) is the EU institution for long-term loans. Its shares are held by the 27 EU Member States, with 5.2% owned by Belgium. The EIB makes long-term financing available for sound investments that contribute towards the EU’s policy objectives. The EIB Group’s annual lending figures for 2025 will be announced on January 29^th.