Understanding capital market dynamics for increased investment in New European Bauhaus projects in neighbourhoods

What is this call about?

The topic funds research on capital demand and supply and an innovative investment solution to attract more capital to New European Bauhaus neighbourhood projects, validated in at least three Member States or Associated Countries.

What does this call fund?

Scope

Investment in neighbourhood transformation projects in line with the New European Bauhaus may be held back by a mismatch between the demand for and supply of capital in size, diversity, returns and risk. Small-scale projects typically meet large, short-term, highly risk-averse investment funds that look for opportunities able to absorb large sums, driven by present legislation such as the EU Taxonomy, the Fit for 55 package and the European Social Fund Plus. Place-based impact investing can help by giving risk-adjusted financial returns while creating local social, cultural, aesthetic and environmental value. Research is needed to understand the demand and supply side of capital and to find mechanisms that attract more investment.

What proposals are expected to address

All of the following:

• Analyse the capital market dynamics that influence investment in New European Bauhaus projects for neighbourhoods, including the size, scale and diversity of capital demand and supply and the barriers, risks and drivers, and the political, financial, economic, regulatory and cultural context.
• Develop an innovative investment solution that uses place-based impact investing, optionally combined with other approaches such as innovative digital financial instruments, platforms for community co-investment or blockchain-enabled transparency mechanisms.
• Determine which types of capital can be mobilised, such as impact funds, real estate investors, family and pension funds, philanthropists, donors and insurance companies, and validate how to mobilise them.
• Give recommendations on securing future funding and financing, and help investors assess investment potential and returns, including economic, social, cultural, aesthetic and environmental.
• Carry out the analysis and validate the solution in at least three Member States or Associated Countries.

Projects should build on the New European Bauhaus Investment Guidelines and use a participatory, transdisciplinary approach. At least 0.8% of the budget should be allocated to engaging with the Horizon Europe-funded New European Bauhaus hub for results and impact, sharing results and contributing to impact assessment.

Expected outcomes

All of: a better understanding by project promoters, public authorities and investors of the capital market dynamics behind investment in projects that transform neighbourhoods in line with the New European Bauhaus; and increased investment in New European Bauhaus projects for the sustainable and inclusive transformation of neighbourhoods.

When is the deadline?

1 December 2026 (26 days)