As part of the European Commission’s Housing Advisory Board, ESCP’s Professor of Real Estate contributes to key financial innovations for a more sustainable housing future in Europe.
In the face of rising housing costs and deepening social inequality across Europe, the European Commission has released a bold new framework: “Towards a European Affordable Housing Plan.” The report outlines 75 policy recommendations aimed at supporting national and EU-level action on housing affordability, supply, and sustainability.
Among the 15 experts selected from over 200 applicants is Professor Jaime Luque, Full Professor of Real Estate at ESCP Business School. His appointment to the Housing Advisory Board reflects a significant recognition of his expertise in real estate and housing policy at the European level.
Professor Luque contributed directly to Chapter 5 of the report, which focuses on funding mechanisms to unlock capital for affordable housing development. His recommendations include:
- A European Affordable Housing Investment Fund to channel institutional and household savings into long-term affordable housing;
- Preferential ECB collateral treatment for affordable housing securities, improving their attractiveness to investors;
- Tax Increment Financing (TIF) districts that allow cities to fund housing from future increases in property tax revenue.
Europeans hold €33 trillion in savings — half of it outside Europe,” Professor Luque explains. “We now have an extraordinary opportunity to attract part of this patient capital to expand our stock of affordable housing. By combining public guarantees with private investment, we can make affordability a permanent feature of our housing system — not a temporary fix.
“If the ECB recognises affordable housing securities as good collateral, it could unlock new financing streams while also giving the central bank an additional tool for long-term price stability.”
In the same spirit, Professor Luque emphasises the importance of aligning financial innovation at the municipal level with broader social goals:“The Tax Incremental Financing (TIF) framework would allow municipalities to dedicate part of their future tax revenues of new housing developments as equity grants for affordable housing developers. The more we design financial architecture around social outcomes, the stronger and more resilient our housing systems will be.”
The report argues for a fundamental shift in how Europe approaches housing — not as a speculative asset, but as essential social infrastructure on par with energy, health, or transport systems. The final European Affordable Housing Plan is expected to be published in early 2026.
Professor Luque’s participation reaffirms ESCP’s role at the intersection of finance, sustainability, and policy leadership, and highlights the School’s growing contribution to high-level European initiatives.
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