Oct 2019 / Oct 2024

Total LACIF contribution (€):
10 400 000

projected total investment size (€):
398 400 000

Types of Support:

  • Investment grants
  • Technical Assistance


  • Urban development



Lead financing institution:


Co-financing institutions:


As of 2019, there was a substantial housing deficit in Peru, affecting mostly low and middle-income population. In addition, 7 houses out of 10 were informally built, which increased their vulnerability to natural disasters and physical and legal precariousness. Urban planning was limited as well, hampering access to infrastructure and transportation, and thus hindering the livelihoods of families in vulnerable situations.

Furthermore, 76% of Peruvians had informal jobs and only 43% held a bank account, which coupled with high interest rates constrained the development of the mortgage market, impeding access to quality housing.

Fondo Mivivienda, a Peruvian public bank dedicated to social housing, joined forces with AFD in 2015 to launch the “MiVivienda Verde” programme. “MiVivienda Verde” was the first Green Social Housing programme of the country and helped families in vulnerable situations purchase green houses while improving national legislation on sustainable construction. This programme defined the set of 14 criteria for a house to be certified as a “sustainable dwelling” and offered grants to integrate green technologies and subsidies to lower interest rates to final beneficiaries. Moreover, the programme conducted a strong communication campaign, which helped increase the demand for green homes, forcing developers to enter this area of the market.


““The Technical Assistance Support provided by the European Union has allowed the “Mivivienda Verde” programme and its certification process to be brought to international levels, allowing better delivery of social housing in the Peruvian market for the benefit of home buyers, especially medium and low-income ones. Likewise, the technical assistance allowed the reevaluation of our Environmental Social Risk System and of all financial institutions that place our green mortgage products.” -
Lucas Sarmiento, projects supervisor in Fondo Mivivienda

The project

Given the success of the “MiVivienda Verde” programme, Fondo MiVivienda, AFD, KfW and the EU teamed up in 2019 to launch a second phase, investing EUR 398 million and supporting the National Housing and Urbanism Policy.

The second phase of the “MiVivienda Verde” programme is targeted towards low-income families and provides loans with terms from 5 to 25 years, in which repayment is not required during the first 5 years and resale is restricted. 125 housing sites have been already built and best practices have been shared among real estate promoters, forcing changes in the social housing market and consolidating the offer of affordable green housing at national level.

The main achievements of this new phase, where the EU is contributing through LAIF, are the consolidation of the accessible and affordable sustainable social housing market, the introduction of more stringent sustainability criteria, the development of urban planning measures and the reduction of the environmental impact of houses, focusing on water and energy efficiency. Besides this, prices of “sustainability related” equipment such as LED lightbulbs or water saving devices have dropped as a result of increased demand and new providers entering the market. This second phase has also been able to expand its geographical scope beyond Lima.

The LAIF contribution has specifically help lower interests on mortgages, thus ensuring access to quality housing for 10,500 Peruvian families. Moreover, LAIF provides technical assistance and capacity building, enabling the programme to reach more ambitious objectives, target more people in vulnerable situations and introduce new energy saving measures. The programme is also aligned with the Global Gateway, the European strategy to boost smart, clean and secure connections across the world, narrowing the global investment gap. One of the priorities of this investment agenda for Latin America is to speed up the fair green transition, including improvement of energy efficiency and savings and sustainable water management.

Due to its success, the programme will continue to be implemented in the future. AFD and KfW signed in 2023 an additional loan of EUR 160 million to promote gender equality and access to housing for people with disabilities, and AFD is already designing further stages to consolidate access to affordable sustainable housing in Peru.

Impact of the “MiVivienda Verde” programme
  • 110,800 households certified as sustainable quality social housing, out of which 10,500 received support from LAIF

  • 50% of beneficiaries are women

  • 20,723 m3 of water saved per year

  • 3,727,211 Kwh savings in energy per year

  • 1387.80 CO2 tons eq reduced per year

  • 14,000 jobs created in the green construction sector