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

Open EU call topic HORIZON-NEB-2026-01-BUSINESS-02 · HORIZON Research and Innovation Actions. Part of call HORIZON-NEB-2026-01: Beautiful, inclusive and sustainable neighbourhoods for communities. Next deadline 2026-12-01. Topic page: https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/opportunities/topic-details/HORIZON-NEB-2026-01-BUSINESS-02

Expected Outcome: Project results are expected to contribute to all of the following expected outcomes: - Project promoters, public authorities, and investors have a better understanding of the capital market demand and supply dynamics that underlie investments in projects fostering the transformation of neighbourhoods[1] in line with the New European Bauhaus (NEB). - Increased investments towards NEB-aligned projects for the sustainable[1] and inclusive[1] transformation of neighbourhoods.

Scope: Increased investment in projects for the transformation of neighbourhoods in line with the New European Bauhaus (NEB) may be hindered due to a discrepancy between the demand and supply of capital in terms of size, diversity, returns, and risk. Small-scale NEB-aligned projects typically encounter large, short-term oriented, and highly risk-averse investment funds, which seek investment opportunities able to absorb large amounts of funding, driven by present legislation[4]. Place-based impact investing is an approach that can contribute to investments in NEB-aligned neighbourhood projects by providing risk-adjusted financial returns while creating local social, cultural, aesthetic[5] and environmental value and by helping to meet local needs in terms of community[1] well-being, social inclusion, local economic resilience, and sustainable development[7]. There is a need for research to understand the capital demand and supply-side aspects that influence and shape investments in NEB-aligned neighbourhood projects and to identify appropriate mechanisms to attract increased investment. Proposals are expected to…