(AGENPARL) - Roma, 17 Febbraio 2026 - (AGENPARL) – Tue 17 February 2026 PRESS RELEASE2026-061-EN
Tallinn/Luxembourg, 17 February 2026
EIB supports Estonia in creating a new business model for rental housing market
EIB teams up with Estonia to tackle a widening rental‑housing gap and kick‑start investment outside major cities.
Only around 2% of Estonia’s new dwellings are built outside Harju, Tartu and Pärnu counties.
The 13‑month advisory programme sets the stage for concrete projects and a new financing framework for modern rental homes.
The Ministry of Climate of Estonia and the European Investment Bank (EIB) have launched a cooperation to increase the availability of affordable and high-quality housing in Estonia. The aim is to develop a financing solution that helps mitigate the risks faced by private-sector developers outside major cities as well.
“Estonia is not just Tallinn. About a third of Estonia’s population lives outside Harju, Tartu and Pärnu counties, yet only up to two percent of new dwellings are built there,” said Minister of Infrastructure Kuldar Leis. “For developers, the risks are simply too high. This hampers labour mobility and regional development. Cooperation with the EIB helps bring modern rental housing to smaller centers. The aim is to arrive at a solution where state intervention is minimal and housing development can function as market driven as possible.”
The EIB will carry out a detailed market assessment, propose a sustainable financing model and a long-term strategy for developing the rental housing market. The advisory work will take place over a 13‑month period.
The longer-term objective of the project is to prepare and launch concrete investment projects in cooperation with private sector partners and local authorities, providing tailor-made financing tools.
“Affordable, high‑quality housing is vital for Estonia’s regional development,” said Karl Nehammer, EIB Vice-President. “Smaller cities and towns have strong potential, but developers often face risks that stall investment. With this advisory support, we aim to help Estonia build a sustainable, market‑driven model that attracts private partners and delivers modern rental homes where people need them most.”
To map the bottlenecks in the Estonian housing market, the University of Tartu and the Estonian Academy of Arts prepared an HYPERLINK “https://kliimaministeerium.ee/elukeskkond-ringmajandus/ehitus-ja-elukeskkond/eluasemepoliitika”“Analysis of the Opportunities for Estonia’s Affordable and Accessible Housing Policy” last year. Among other findings, the study highlighted that regional disparities in the housing market reduce the country’s long-term competitiveness and constrain economic development and the availability of skilled labour.
The EIB has supported affordable and social housing programmes across many EU Member States, bringing tested practices that Estonia can adapt to its needs. Building on this experience, the Bank is scaling up housing support across Europe through its new Action Plan and initiatives such as the €400 million HousingTechEU programme — more information is available at More homes. Better homes.
Background information  
The EIB Group
The European Investment Bank (ElB) Group is the long-term financing institution of the European Union, owned by its Member States. In 2025, the EIB Group signed €100 billion of new financing for over 870 high-impact projects in eight core priorities that support EU policy objectives, including €336 million in Estonia. In addition to financing, the EIB Group offers advisory services that help public and private clients develop markets, build capacity and support high-impact investment projects.
Photos of the EIB Group’s spokespeople and headquarters, logo files and video B-roll for media use are available here. 
Press contacts
EIB
Ministry of Climate of Estonia
Website: https://kliimaministeerium.ee/en