Information and News

March 26, 2025 - At its 77th session, the Government of the Republic of Croatia adopted the National Housing Policy Plan of the Republic of Croatia by 2030, the first and umbrella strategic document on housing in Croatia, as well as the Action Plan for the Implementation of the National Housing Plan for the period 2025-2027. More information available HERE.

Presentation of Minister Bačić:


          

December 31, 2024 - National Housing Policy Plan of the Republic of Croatia by 2030 open for public consultation by January 30, 2025

National Housing Policy Plan of the Republic of Croatia by 2030 presented. More information available in the presentation:

                              
 

Deputy Prime Minister and Minister Branko Bačić presented the National Housing Policy Plan of the Republic of Croatia by 2030 on October 18, 2024.

The plan is the first and umbrella medium-term strategic planning document of national significance for housing in Croatia, and Minister Bačić pointed out that the issue of affordable housing, highlighted as a hot topic in Croatia, is also recognised at the European Union level.

“This strategic document has been developed in collaboration between multiple disciplines, taking into account all aspects of demographic, social, economic, financial, spatial and environmental policy. A comprehensive analysis identified the reasons, as well as the solutions to extremely high prices of apartments for both purchase and rental in Croatia,” the Minister said.

To start with, he presented data showing the current state, including the fact that in Croatia 40% of the housing stock (958,000 apartments) is not used for housing, while there is also a shortage of 230,000 apartments. In addition, over the past years there has been a sharp increase in real estate and rental prices, with demand surpassing supply.
 
Three goals of the National Housing Policy Plan

There are three goals of the National Plan - affordable housing, sustainable housing and managing space for housing purposes - which should be achieved by combining four levers: financial, tax, land, and ecological and energy.

In order to achieve the goals, several laws will be amended, and new ones will be adopted, including the new Building Act, the new Physical Planning Act, the new Act on Energy Efficiency in Building Construction, the new Act on State-Subsidised Housing Construction (POS).

In order to achieve the three goals, it will be necessary to activate vacant real estate through tax policy measures and renovation of state-owned real estate, and to encourage long-term rentals through regulating short-term rentals and through the Affordable Rental Programme.
 
APN will also publish a public call for tenants

In addition to landlords, APN will also publish a public call for tenants, whose rent will amount to 30% of their household income remaining after the utility bills have been paid.

With regard to constructing apartments, 14-15 thousand apartments are constructed annually in Croatia, Minister Bačić said, and in order to increase that number, the Ministry suggested two measures.

The first measure refers to implementing state-subsidised housing construction, first introduced in 2001, and APN will, in cooperation with local self-government units, built new settlements where half the apartments will be available for purchase and half for affordable rental, while the second measure refers to encouraging private investors to build.

“The state will, through its measures, encourage private investors to build in the zones designated for affordable housing. We have to provide them with a simpler, faster and cheaper access to land, but under the obligation to secure a percentage of their apartments for affordable housing,” Minister Bačić said.

Student accommodation capacities will also increase in order to free up housing capacities in large cities, while non-profit housing cooperatives will also be encouraged - which will also require amending the Act on Cooperatives.

The National Housing Policy Plan also includes adopting a simpler and faster procedure for the construction of family houses in rural areas.
 
Revolving Fund to be established for implementing measures

Implementing the National Housing Policy Plan is estimated to require 1.2 billion euro. And to implement everything, the Minister highlighted, it is necessary to establish a Revolving Fund which will finance the entire National Plan.

The Fund will accumulate resources from the state budget, EU funds, bank loans and the money paid by citizens through using affordable housing measures.

It is estimated that eight thousand housing units will be built through POS programmes by 2030, two thousand housing units will be built in assisted areas, at least twelve hundred state apartments for affordable rental will be activated, with additional apartments owned by the public sector.

Twelve hundred housing units will be built through active land policy and encouraging non-profit housing cooperatives, while nine thousand privately owned housing units is planned to be activated through the Affordable Rental Programme.

This medium-term strategic document is focused on demographic revitalisation, affordable housing for all social and age groups, increasing labour mobility, encouraging the competitiveness of national economy, as well as on excellence in architecture and green and circular housing construction.

An external evaluation of the National Housing Policy Plan of the Republic of Croatia until 2030 will take place, after which the document will be open for public consultation.

The National Housing Policy Plan will further define goals in the field of housing, and its purpose is to define affordable housing, which must comply with the established quality standards. Moreover, the Plan also aims to contribute to other goals such as reducing emigration, providing housing care to young people, attracting people in shortage occupations, increasing labour mobility, facilitating independent living for older people (programme 65+), increasing the competitiveness of national economy, excellence in architecture, green and circular housing construction, sustainable housing construction, etc.

Starting points for developing the National Housing Policy Plan of the Republic of Croatia until 2030:
 
  • Housing is one of the fundamental human needs, and a home represents the foundation of stability and safety for both an individual and a family, the backbone of social and emotional life and, increasingly, a workplace.
  • The supply on the housing market cannot meet the demand, and real estate prices are constantly increasing.
  • The Republic of Croatia is extremely heterogeneous in terms of geography and economy, which poses a special challenge to creating the National Plan.
  • According to the data in the Long-Term Renovation Strategy of the National Building Stock by 2050 (OG 140/2020), of the total number of occupied housing units in the Republic of Croatia used for permanent housing, 97.28% is privately owned and 2.72% refers to other types of ownership.
  • According to research by the World Bank (2022), 56% of the world population today - 4.4 billion residents - lives in cities. It is expected that this trend will continue, with the urban population more than doubling by 2050 compared to the current size, at which point nearly 7 out of 10 people will live in cities.