Signature(s)
Summary sheet
- Urban development - Construction
The operation is aimed at supporting the construction of new affordable housing units in Austria
The operation is aimed at supporting the construction of new affordable housing units in Austria.
The Project comprises the construction of some 3,800 new social and affordable housing units, contributing to the promotion of Integrated Urban Development in Austrian cities.
Addressing Austria's severe housing shortage, driven by strong nationwide demand, is crucial. The EIB's project will contribute to address the market gap caused by the limited availability of affordable housing. This financial support is essential for maintaining low rental levels and fostering the development of sustainable communities.
The EIB's investment schemes are part of well-defined local urban development plans aimed at promoting social diversity and meeting the high demand for social housing in Austrian cities. By providing long-term financing at competitive rates, the EIB addresses the market failure in the housing sector, where private financing options are insufficient to meet the needs of low and middle-income households.
A key value-added aspect of the EIB's involvement is the provision of financing on favorable terms, including a long draw-down period that aligns with the funding requirements during the investment phase. This long-term financing is crucial given the extended nature of housing investments and its positive impact on the overall project cost.
Ultimately, the EIB's financing will contribute to a more balanced local residential market and an increased housing supply in Austrian cities. This will help address the existing housing needs of low and middle-income households, ensuring that rent levels remain affordable.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.