Germany: Europe invests in Regensburg – EIB financing of €80 million for modern, energy‑efficient, affordable housing

This article is published in association with European Investment Bank.

• Stadtbau-GmbH Regensburg will receive a loan for €80 million from the European Investment Bank (EIB) towards its €175 million programme investing in construction and energy efficiency renovation.
• The project will build additional units and upgrade Regensburg’s existing housing stock to create more social and affordable housing.
• Green neighbourhoods with high energy efficiency standards serve the climate goals of both the city and the European Union.

The EIB has granted a loan for €80 million to support Stadtbau‑GmbH Regensburg’s multi‑year investment programme for housing construction. The total volume of investment will be around €175 million, and will finance both new housing and energy efficiency renovations of urban rental units.

“This new EIB financing sends a strong positive signal for Regensburg. It will help us create more affordable, environmentally friendly housing, and keep our city a nice place to live for people of every generation,” said Gertrud Maltz‑Schwarzfischer, Mayor of the City of Regensburg.

This financing from the bank of the EU will cover a significant part of the programme cost, and enable Stadtbau to accelerate investment without jeopardising its healthy balance sheet. Some of the planned measures include new flats in the social and affordable housing segment, energy efficiency upgrades, and improvements to existing neighbourhoods.

“This €80 million from the EIB is a crucial lever for implementing our overall investment programme for Regensburg, which totals €175 million. It will enable us to build new social and affordable housing, and to modernise our existing stock to meet the needs of tomorrow. For our tenants, this means more options, better energy efficiency, and rent that is fair and stable for the long term. Our partnership with the EIB allows us to plan reliably, and highlights how important municipal housing firms are for social and environmentally friendly urban development,” said Götz Kessler, Managing Director of Stadtbau‑GmbH Regensburg.

“With this loan for €80 million, we are supporting investment in modern, social and affordable housing in Regensburg. The project illustrates how Europe delivers concrete results locally: We are helping a municipal housing company create more flats and renovate existing ones to make them energy efficient, for a lasting reduction of cost burden for tenants. Like many growing cities, Regensburg faces the challenge of keeping housing affordable while also meeting climate targets. In Stadtbau‑GmbH, we have a partner that credibly combines social responsibility, architectural quality and environmental protection – and that is exactly what EIB financing is meant for,” said EIB Vice-President Nicola Beer.

More social and affordable housing for Regensburg

The investment programme is intended to increase the number of social and affordable flats available in Regensburg, and give the existing stock a comprehensive upgrade. This should ease pressure on the local housing market and give more people access to suitable, affordable housing.

The focus is on low- and middle-income renters, who are in particular need of affordable rent and energy‑efficient homes. Through new construction and renovation, the programme will help increase quality of life in the relevant neighbourhoods, as well as social diversity.

A strong partnership between the EIB and Stadtbau‑GmbH

As the municipal housing company of the City of Regensburg, Stadtbau‑GmbH will be the project promoter implementing the programme. The EIB will provide robust finance and expertise in long‑term investment in sustainable infrastructure, reinforcing Stadtbau’s role as a reliable partner for the community.

The partnership shows how EU funding has a tangible local impact, and supports municipal actors in expanding housing and sustainable neighbourhoods.

High climate and environmental standards

Stadtbau‑GmbH’s investment programme applies high climate and environmental standards. It includes new energy‑efficient buildings and energy efficiency renovation of existing buildings in line with the EU’s Energy Performance of Buildings Directive.

At the same time, it ensures compliance with the relevant EU environmental regulations – including environmental impact assessments, strategic environmental assessments, the Habitats Directive and the Birds Directive.

With these measures, the project makes a direct contribution to the climate goals of the City of Regensburg and the European Union, and enables the long-term reduction of tenants’ heating cost burden. The combination of social service and environmental protection makes the programme a poster project in municipal housing policy.

Background information

EIB

The European Investment Bank is the long-term lending institution of the European Union, owned by the Member States. Based on its eight core priorities, the Bank finances investments that pursue strategic EU objectives. It supports projects beneficial for climate and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a strong Europe in a more stable and peaceful world.

In 2024 the EIB Group, which also includes the European Investment Fund, signed nearly €89 billion in new financing for over 900 high-impact projects, making Europe safer and more competitive.

All projects financed by the EIB Group are aligned with the Paris Agreement, as pledged in its Climate Bank Roadmap. Almost 60% of annual EIB Group financing goes to projects that contribute directly to climate change mitigation and adaptation, and a healthier environment.

The EIB Group is committed to deeper market integration, and its activities help mobilise additional investment. In 2024, it triggered a record total of more than €100 billion in investments for EU energy security, and mobilised €110 billion in growth capital for startups, scaleups and pioneering European firms.

Around half of EIB financing within the European Union goes to cohesion regions, where per capita income is below the EU average.

High-quality, up-to-date photos of EIB headquarters are available on the EIB website.