Urban development funding can have a remarkable leverage effect: One million euros in funding triggers investments of around 6.9 million euros. These figures emerge from a study commissioned by the Federal Institute for Research on Building, Urban Affairs and Spatial Development. The study also shows that the funding not only supports the local and regional economy, but also drives forward climate-relevant projects.
Accordingly, around a third of the projects financed by urban development funding are climate-related. These include, for example, measures to improve green spaces, drainage and urban infrastructure, which help to adapt cities to climate change and make them more environmentally friendly. The funding makes it possible to make urban spaces more sustainable and liveable, which increases the attractiveness and functionality of cities in the long term.
The study also emphasizes the economic benefits of urban development funding. Around 71% of the funding flows directly into local and regional companies, which strengthens the construction and service sectors.
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