At the start of the Invest in Germany Summit, the German Private Equity and Venture Capital Association (BVK) and the German Property Federation (ZIA) presented a joint policy paper. Entitled 'Private Capital Needs Competitive Framework Conditions and Reliability', the associations link the provision of equity capital for start-ups, scale-ups, and SMEs with necessary investments in housing and infrastructure. Both organisations welcome the Federal Government's investment summit and emphasise the need for concrete improvements in financing, regulation, and investment security.
Ulrike Hinrichs, Spokeswoman for the BVK Board, stated that Germany needs not only an efficient infrastructure but also companies that can grow and invest. She highlighted that private equity funds pool private and institutional capital to provide long-term equity to companies. Attracting this capital to Germany requires a competitive fund location and reliable rules.
Aygül Özkan, Chief Executive of ZIA, stressed the importance of the Federal Government actively campaigning for international capital. She pointed out that investments, for example in artificial intelligence, energy, or semiconductors, inevitably lead to additional skilled personnel and consequently an increased demand for housing. This, she argued, necessitates an investment booster for new residential construction in Germany.
Strengthening Companies and Creating Housing
For start-ups, scale-ups, and medium-sized enterprises, long-term equity capital is crucial for financing growth, innovation, and transformation. Private equity funds serve to pool private and institutional capital for this purpose. To promote investment activity by insurance companies, pension funds, and other institutional investors in private equity and venture capital, greater regulatory flexibility, competitive tax framework conditions, and a stable fund location are required. The BVK pursues this approach.
The housing and infrastructure sectors are also dependent on long-term private capital. In 2025, foreign buyers accounted for 33.1 per cent of the investment volume in the German residential investment market, an increase from 20.8 per cent in the previous year. In parallel, according to data from the Federal Statistical Office, approximately 206,600 dwellings were completed. However, according to the spring report of the real estate industry, the annual demand is around 257,400 housing units. For the ZIA, these figures underscore the relevance of reliable financing and investment conditions in residential construction.
Demands for an Improved Situation
The joint policy paper by BVK and ZIA identifies six central areas of action that consider both the perspective of private equity and the real estate industry. These include facilitating the financing and mobilisation of institutional capital, attracting international capital through competitive tax design, and the targeted use of public funds as leverage. Furthermore, the paper mentions securing property rights and strengthening investment security, as well as creating predictable rules and reducing bureaucracy to accelerate investments.
- —Expand regulatory scope for institutional investors in private equity and venture capital.
- —Appropriate correction of the 150 per cent risk weight for project development financing.
- —Create internationally competitive tax rules for private equity and venture capital funds.
- —Combat tax abuse without burdening foreign long-term investors.
BVK and ZIA see competitive framework conditions, the reduction of regulatory hurdles, and reliable rules as the key to mobilising additional private investments. Many of the proposed improvements are achievable without immediate additional budget expenditure. Where public funds, guarantees, or tax incentives are used, they should aim to activate additional private capital for businesses, housing, and infrastructure. The Invest in Germany Summit should provide the impetus for concrete measures.
Aygül Özkan further emphasised that tenant protection for existing tenants must not become a barrier for those seeking housing. Affordable housing does not arise from continuous interventions in existing rental agreements, but through investments in new construction. Debates about nationalisation and retroactive interventions in tenancy law would counteract the goals that the Federal Government is promoting at the summit.
