EIB and Flanders sign €1.7 billion deal to expand social housing

The European Investment Bank (EIB) and the Belgian region of Flanders have signed a €1.7 billion financing deal to expand and renovate social housing, the EIB announced. The agreement—the largest ever EIB operation in Belgium—aims to make affordable, energy-efficient homes accessible to thousands of Flemish households.

The first €700 million tranche, signed in Brussels by Flemish Finance Minister Ben Weyts and Housing Minister Hans Bonte, will fund the construction of 6,350 new homes and energy-efficient renovations for another 10,100. Over time, the full facility will support Flanders’ wider goal of building 56,000 additional social housing units and modernizing thousands more by 2042. The improvements will lower energy use and cut bills for lower- and middle-income families struggling with rising housing costs.

“Our mission is to finance projects that directly improve people’s lives,” said EIB Vice-President Robert de Groot. “This partnership with Flanders will help thousands of people access affordable, energy-efficient housing while supporting Europe’s clean energy transition.”

Minister Weyts compared the deal to “a Flemish family taking out a mortgage to build their home,” highlighting that the preferential EIB rates would save the region around €35 million in interest on the first tranche alone. Bonte, meanwhile, described the agreement as a timely response to a deepening housing crisis. “There’s a huge shortage of affordable rentals, and prices have skyrocketed. Thanks to these preferential loans, we can now build and renovate more social housing, faster—helping families save money on rent and energy,” he said.

By combining low-cost financing with long repayment terms, the initiative will enable municipalities to deliver social housing faster and at scale. It also aligns with the EU’s broader climate goals by supporting energy-efficient building standards and reducing dependence on fossil fuels.