IBB Housing New Construction Fund

The IBB Housing New Construction Fund supports social housing construction in Berlin through long-term, interest-free or low-interest construction loans and attractive construction cost subsidies. Funding is provided to municipal and private housing companies, cooperatives, as well as landlords and investors who newly build, purchase, or create affordable rental apartments in Berlin through expansion or conversion. A prerequisite is an investment location in Berlin, the construction of at least ten subsidized apartments (at least four in the case of attic conversions), and compliance with the 2023 housing promotion regulations with socially acceptable rent restrictions (WBS binding) for 30 years. Eligible expenses include, among others, new construction, purchase of newly built residential properties, expansion and change of use of existing buildings, as well as one-time measures such as elevator installations, accessibility, and sustainable construction. The maximum funding amount is up to €5,300 per m² of living space (construction loan) and up to €1,800 per m² of living space (construction cost subsidy).

Interested applicants can submit their application for inclusion in the housing new construction program to the Investitionsbank Berlin at any time. Required are a fully completed application form, a financing plan, and the 2023 housing promotion regulations. The loan term of up to 30 years, an equity ratio usually of 20%, and a repayment-free start-up period of three months after readiness for occupancy provide planning security. Sustainability aspects (SDG contribution), socially acceptable rent levels, and land value-dependent loan amounts are factored into the decision. With the IBB Housing New Construction Fund, the State of Berlin makes a sustainable contribution to the targeted expansion of affordable housing options and the strengthening of social urban structures.