University of Crete Secures €95M EIB Funding for Student Housing and Campus Upgrades

Crete's Academic Landscape Transformed with €95M EIB Investment in Sustainable Housing and Education Facilities.

The University of Crete is poised to undergo a historic transformation thanks to a landmark €95 million financing agreement with the European Investment Bank (EIB), backed by the InvestEU programme. The funding will support the construction of cutting-edge student housing and state-of-the-art academic infrastructure through Greece’s first university-focused Public-Private Partnership (PPP) project. This initiative represents a crucial step forward in addressing student housing shortages, promoting sustainable development, and enhancing the learning environment for current and future generations of students.

The project, awarded to the AKTOR Group and delivered via its subsidiary Talaia Estia SA, will see a total investment of €190 million—jointly financed by the EIB and Piraeus Bank. It will add 2,833 new student rooms across two campuses in Heraklion and Rethymno, accommodating up to 4,846 students. With over 109,000 square meters of new infrastructure, the initiative also includes new academic facilities such as an 800-seat amphitheatre at the Rethymno campus.

Setting a New Benchmark for Energy Efficiency

The newly built facilities will go beyond Greece’s Nearly Zero Energy Building (NZEB) standards, integrating advanced climate adaptation measures, sustainable materials, and lifecycle carbon footprint management. The project also adheres to the EU Taxonomy technical screening criteria, ensuring compliance with Europe’s evolving green infrastructure goals.

The EIB played a significant role not only in financing but also in providing crucial technical support to enhance the project's environmental sustainability, design efficiency, and long-term resilience. This included helping develop technical specifications related to energy efficiency and climate adaptation, advising the Greek PPP Unit on contractual frameworks, and equipping the University’s management team with tools for overseeing the 30-year partnership.

Visionary Leadership for Greece’s Academic Future

Yannis Tsakiris, EIB Vice-President, hailed the project as a bold step toward modernizing Greek higher education:

“This is not just about construction—it’s about creating environments that inspire learning, foster innovation, and make education accessible. The EIB’s support of this transformative PPP project highlights our long-term commitment to education, sustainability, and social impact.”

Sofia Zacharaki, Greece’s Minister of Education, Religious Affairs and Sports, emphasized the national impact:

“We are laying the groundwork for a sustainable, inclusive, and forward-looking academic infrastructure. This project aligns with our broader €700 million plan to provide affordable, quality housing to thousands of students, increasing national capacity from 12,457 to 21,000 beds, while renovating existing facilities and ensuring long-term maintenance and cost efficiency.”

Public-Private Partnerships Driving Progress

The PPP model adopted by the University of Crete is among the first in Greece to be implemented at a university level. With a 30-year concession period, it ensures not just the delivery of new infrastructure but its long-term maintenance and efficient operation.

AKTOR Group Chairman and CEO Alexandros Exarchou highlighted the responsibility and ambition behind the project:

“We see this as a milestone not only for Crete but for Greece. Our aim is to create a new standard for academic infrastructure—modern, green, and inclusive. At AKTOR, we are dedicated to creating lasting value for society by investing in future generations.”

Piraeus Bank also reaffirmed its commitment to national development. Theodore Tzouros, Executive General Manager and Head of Corporate & Investment Banking at Piraeus, noted:

“Supporting this project aligns with our strategic goals of sustainable development and social inclusion. Affordable student housing plays a vital role in equal access to education and contributes to long-term regional and national growth.”

Addressing the Growing Student Housing Crisis

Crete, a region with a booming tourism-driven property market, has faced increasing challenges in providing affordable student accommodation. Rising real estate prices have made it difficult for students, particularly those from low-income backgrounds, to find accessible housing close to their universities.

This project aims to alleviate those pressures by significantly increasing available student housing and creating an environment conducive to academic success. In addition to supporting students directly, the expansion is expected to stimulate the local economy through job creation and greater demand for local services.

Europe-Wide Strategy to Tackle Housing Inequality

This announcement aligns with the broader EIB Group housing strategy unveiled at the recent EIB Forum. Over the next two years, the EIB Group plans to invest approximately €10 billion to create or renovate 1.5 million affordable, energy-efficient housing units across Europe. A newly launched one-stop-shop portal will also provide technical advice and funding pathways for public and private sector players looking to invest in innovative, sustainable housing.

A Long-Term Vision for Educational Equity and Innovation

The University of Crete project exemplifies how international financing, local government vision, and private sector expertise can converge to solve complex social issues. Beyond new buildings and bed spaces, it symbolizes a long-term commitment to educational equity, environmental responsibility, and social progress.

With construction expected to commence soon, this initiative marks a new chapter not only for the University of Crete but for higher education in Greece and beyond. As a beacon of innovation and sustainability, it offers a model for how public infrastructure can evolve to meet the changing needs of students and society in the 21st century.