Housing policy under the conditions of financialisation - The impact of institutional investors on affordable housing in European Cities

Overview of the Report

The research report “Housing policy under the conditions of financialisation – The impact of institutional investors on affordable housing in European Cities” is a collaborative study coordinated by Sciences Po Urban School, a leading academic institution in urban and housing research. Authored by Andrej Holm, Georgia Alexandri, Matthias Bernt, Max Oxenaar, Manuel B. Aalbers, Defne Kadioğlu, Alessandro Coppola, Marta M. Cordini and others, the work draws on expertise from scholars based in Athens, Berlin, Brussels, London, Malmö, Milan and Warsaw. Published in June 2023, the report synthesizes six months of comparative case‑study research funded by Sciences Po Paris.

Research Scope and Methodology

The study examines seven European cities—Athens, Berlin, Brussels, London, Malmö, Milan and Warsaw—to assess how institutional investors influence housing affordability. Using a comparative case‑study design, the authors combine qualitative interviews, grey‑literature analysis and document review. The report highlights the diversity of local housing systems, regulatory frameworks and market dynamics, emphasizing that financialisation is highly context‑bound rather than a uniform process.

Key Findings on Institutional Investor Presence

• Institutional investors control roughly 17 % of Berlin’s rental flats (≈330,000 units) and <1 % of Poland’s housing stock, but dominate in Germany and Sweden where they manage over 770,000 units.
• In Athens, institutional activity is emerging, with 7 % of NPL‑related housing assets sold through e‑auctions and significant interest from family offices and private‑equity funds.
• Brussels’ private‑rental sector remains largely fragmented; only ≈7 % of rentals are owned by corporate landlords, yet investment is growing in niche markets such as co‑living, student housing and market‑social housing.
• Across the seven cities, institutional investors’ strategies include direct ownership, participation in subsidiaries, and acquisition of non‑performing‑loan (NPL) portfolios.

Impact on Affordable Housing Supply

• In Berlin, institutional landlords own ≈330,000 flats (≈17 % of the rental market) and have been linked to higher rent increases, especially after “luxury modernisations”.
• Athens sees a sharp rise in rent levels (≈40 % increase since 2015) driven by foreign capital and Golden‑Visa programmes; affordable stock is estimated at 1.5 % of the city’s housing.
• Brussels’ institutional investors focus on new‑build‑to‑rent (BTR) projects and niche sectors, contributing modestly to overall supply but raising concerns about market‑price pressures.
• The report notes that while institutional investors can finance new construction, their share of new housing completions remains low (e.g., Berlin’s institutional‑led new builds total ≈2,840 units between 2017‑2023).

Policy Responses and Governance

• Germany (Berlin): Social preservation zones, right‑of‑first‑refusal, and rent‑cap attempts have had limited effect; recent ex‑propriation referendums aim to socialize large landlord portfolios.
• Greece (Athens): Post‑crisis reforms abolished primary‑residence protection, introduced “Second Chance” insolvency law, and expanded NPL‑securitisation, facilitating investor entry.
• Belgium (Brussels): Regional housing code provides a right to housing but lacks rent control; municipalities have introduced non‑binding planning recommendations and a €1,520 per co‑living room tax to curb speculative conversions.
• EU‑wide: The study highlights the need for coordinated multi‑level governance, noting that national constitutional limits often constrain local rent‑regulation initiatives.

Implications for Sustainable Housing

The authors argue that sustainable housing outcomes depend on aligning financial incentives with social objectives. Institutional investors tend to prioritize asset‑value maximisation, which can conflict with affordability goals. However, the report identifies potential policy levers:

• Public‑private partnerships that attach affordability clauses to financing.
• Tax incentives for renovation that preserve existing stock while limiting rent hikes.
• Strategic land‑use planning (e.g., PAD instruments) to secure minimum percentages of affordable units in new developments.
• Enhanced transparency of NPL‑related transactions to monitor investor concentration.

Data Highlights

• PDF size: 3.7 MB; Link: https://www.sciencespo.fr/ecole-urbaine/sites/sciencespo.fr.ecole-urbaine/files/Rapporthousinghopofin.pdf
• Last edited: 5 May 2026 12:36 PM; Status: Public; Database submission: 12 Feb 2026 5:23 PM; Website submission: Yes.
• Key statistics: Institutional investors hold ≈1.87 % of Germany’s total housing stock, ≈0.002 % in Poland, and ≈14 % of Sweden’s private‑rental sector.
• Affordability indicators: In Berlin, 48 % of households spend >30 % of income on rent; in Athens, 32.4 % of the population exceeds the 40 % housing‑cost burden threshold.

Conclusion

The report provides a comprehensive, data‑driven assessment of how institutional investors shape housing markets across diverse European contexts. By documenting ownership patterns, investment strategies, and policy environments, it offers a factual basis for pan‑European stakeholders seeking sustainable, affordable housing solutions.