Infrastructure celebrates boom: How investors can benefit from the boom
For a long time, infrastructure investments were considered “boring,” illiquid and low-yielding. But the tide has turned: Thanks to the global infrastructure boom, hundreds of billions of government funds are likely to flow into expanding municipal projects in the coming years. Find out how private and institutional investors could benefit from the correspondingly attractive return opportunities.
Tailwind from Billions in Budgets
For decades, infrastructure and defense lived in the shadows. The new federal government wants to change that. With the 500 billion euro special fund, 100 billion of which goes to states and municipalities, it sends a strong signal for economic growth - for which even immense new debt is being accepted. In addition to billions of dollars in defense budgets, a lot of money is also likely to flow into power grids, airports and road construction. The energy revolution, for example, requires massive investments in supply, charging infrastructure, hydrogen technology and storage solutions. Germany therefore wants to invest around 600 billion euros in climate-friendly infrastructure by 2030. The EU is also specifically funding major sustainable projects through programs such as “RepowerEU” or the “Green Deal”. This is partly financed by the state, partly by investors.
Infrastructure Investments: From Stepchild to Superstar
This trend can already be observed on the financial markets: As is well known, the future is traded on the stock exchange, share price developments often reflect economic and social trends. This is currently particularly true for the infrastructure sector. For years, stocks such as ThyssenKrupp, Siemens Energy and Hochtief were “out.” But since the huge, globally planned infrastructure investments in the coming years became known, the tide has turned and Infrastructure stocks are among the big winners in 2025. The trend is likely to continue — but how can investors also benefit from it away from the stock market?
In Principle, the Infrastructure comprises all basic physical and digital structures that are essential for the functioning of an economy. This includes transport routes such as roads, bridges and airports, as well as power grids, water supply, telecommunications networks and renewable energy systems. Social infrastructure — such as schools, hospitals or care facilities — can also be part of an infrastructure portfolio.
Experts see the Infrastructure Boom as an Opportunity to Mobilize Private Capital. In order to reduce the investment backlog of German municipalities worth billions, it is necessary that state capital from special funds be supplemented by private capital.
There is no alternative to private and institutional investments
In fact, studies clearly show that public funding alone is not enough. Private capital is also needed to meet the immense investment needs. studies Assume that 400 billion euros will be needed in Germany alone to repair and expand motorways, federal railways and energy infrastructure over the next ten years.
Investments in these areas are made both through shares from participating companies and through bonds, specialized funds or direct investments, which are becoming more attractive among private and institutional investors. This is because the combination of a high investment requirement, political support and growing investor interest creates an attractive market environment. There is also planning security, as infrastructure investments provide long-term and predictable cash flows over decades. In addition, as the largest European economy, Germany offers excellent framework conditions with reliable regulations and funding regimes.
The figures also speak for themselves, such as the current Infrastructure report by the Federal Association of Alternative Investments (BAI), for which 111 institutional investors with a total of 2.3 trillion euros in assets under management were surveyed, shows:
With 85 percent approval, Infrastructure Equity is the second most popular alternative asset class among the investors surveyed — just behind real estate. Infrastructure debt is growing even more dynamically: The share of invested investors is expected to rise from 49 to 59 percent. Despite all positive arguments and a general willingness to invest in the private sector, however, according to BAI, most financial resources flow abroad. Four out of five German investors mainly invest their money in infrastructure projects outside the Federal Republic of Germany.
How can infrastructure investments be mobilized in Germany?
One reason for this development is that Germany is regarded as a secure but difficult at the same time to access location with lengthy approval procedures, complex federal responsibilities and a certain skepticism about private-sector involvement.
This is now set to change: By reducing bureaucracy, uniform procedures and more attractive regulatory frameworks, politicians want to create targeted incentives to channel private capital more into domestic infrastructure.
In addition, Infrastructure Projects have so far been reserved almost exclusively for institutional investors such as pension funds or wealthy private investors. Access to this attractive asset class remained closed to the broad masses of investors. This is exactly where FINEXITY to: By tokenizing infrastructure projects on the blockchain, private investors can also invest transparently and digitally with amounts of 500 euros or more and benefit from corresponding return opportunities. This opens the door for retail investors to an asset class that was previously difficult to access, which combines stable income, long-term prospects and significant social and economic impact.
