Contracts signed on constructing multiapartment building with 206 apartments in Osijek

Today at the Ministry of Physical Planning, Construction and State Assets three contracts were signed which start the implementation of a construction project of a multiapartment building in Osijek worth 28 million euro and comprising 206 housing units. The project will be implemented under the Programme of State-Subsidised Housing Construction (POS) with the aim of providing accessible and quality housing to the citizens of Osijek.

The signing ceremony was attended by Deputy Prime Minister and Minister of Physical Planning, Construction and State Assets Branko Bačić, Director of Agency for Transactions and Mediation in Immovable Properties (APN) Dragan Hristov, Mayor of Osijek Ivan Radić, representatives of the contractor KAMGRAD d.o.o. director Domagoj Kamenski and Goran Rogačević, and Director Ivana Burcar Dunović, PhD, on behalf of the project manager SUBNECTO d.o.o.

“I am very pleased to be able to sign the contracts today on the construction of three multiapartment buildings with a total of 206 apartments, connected by an underground garage. These housing units will contribute to affordable housing of young families in the city of Osijek,” Minister Bačić said.

Director of APN Dragan Hristov also pointed out that this is a major step forward for the city.

“By signing these three contracts we start the construction of a multiapartment building including five or six floors worth 28 million euro, VAT included. APN has secured land and subsidies of seven million euro. The construction period is 18 months from the kick-off meeting with the contractor, and the purchasing price will be 2,104 euro per square metre”, Director Hristov said.

The Contract on mutual rights and obligations was signed between APN and the City of Osijek, and it regulates cooperation with respect to building construction, municipal infrastructure development and the necessary connections. The contract also defines the role of the City of Osijek in project financing.

At the suggestion of Mayor Ivan Radić, the City Council of the City of Osijek decided to allocate a 3.5-million-euro grant for cofinancing the project from its budget.

“We additionally committed to covering the cost of connecting the building to municipal infrastructure. This is one of the largest projects of state-subsidised housing construction in Osijek over the past 30 years, and it covers nearly 13,000 square metres. I am confident that numerous families will make their homes precisely there,” Mayor Radić said.

The City’s cofinancing was essential for project implementation, Minister Bačić clarified.

“In order for this project to be implemented under the current Act on State-Subsidised Housing Construction, the maximum price for the buyer must be 2,104 euro per square metre. With this contribution, the City has enabled the construction of the apartments and their inclusion in the POS system,” he said.

The second contract, the Contract on construction, was concluded between APN and KAMGRAD d.o.o., and it refers to construction works on said real estate. The building will be constructed according to project documentation by V-V PROJEKT d.o.o. from Split and main designer, architect Ivan Vulić.

The third contract, the Contract on the execution of project management tasks and activities for the construction of a multiapartment building under POS, was signed between APN and SUBNECTO d.o.o.

Important investment project for the City of Osijek

By signing these contracts, an important investment project for the City of Osijek starts, which will ensure conditions for affordable, safe and quality housing under the Programme of State-Subsidised Housing Construction and the National Housing Policy Plan of the Republic of Croatia.

“Along with this project, we apply other measures as well. One of them is the new affordable rental programme, and another is providing city land for the purpose of building rights to young families. All these measures, including today’s project, contribute to the development of affordable and state-subsidised housing in Osijek,” Mayor Radić said.

The basic criteria for obtaining an apartment in the future POS building are that the person has unresolved housing situation and is credit-worthy, because the apartment still needs to be paid off despite favourable conditions.

“APN already has a priority list with around 50 interested parties. We are also obliged to offer the apartments to the Ministry of Croatian Veterans - approximately 80 apartments for interested users - and we also have a list of around 140 candidates for rentals. If any apartments remain available, a second round of the tender will be launched,” Director Hristov added.

Minister Bačić emphasised that such a housing complex hasn’t been built in Osijek for a long time.

“It will not only enhance the city’s visual identity, but it will also provide our fellow citizens with affordable housing. We expect to lay the foundation stone in about 20 days,” Minister Bačić announced.

Significant steps forward in achieving affordable housing

Let us recall that in late October the foundation stone was built for the construction of a multiapartment building with 35 apartments in Trogir, worth 5.5 million euro, while last week the foundation stone was laid for a 17-apartment POS building in Novalja, worth 2.6 million euro.

“We will continue such projects. APN has already obtained building permits for nearly 600 apartments across Croatia, and additional buildings for which we will obtain permits soon are under preparation. We will continue to launch public procurements for other housing units and locations in Croatia,” Minister Bačić added and explained that the implementation of these projects was made possible by amendments to the Act on State-Subsidised Housing Construction from April this year, which represent a response to increased prices of construction work and materials.

He also announced that the Government’s session tomorrow will include the Affordable Rental Programme, which will cofinance apartment rentals for those citizens who haven’t met the conditions for affordable housing in the market.

“On behalf and to the benefit of private owners, APN would take over vacant apartments, which would be allocated to citizens in need according to the priority list,” Bačić said.

To conclude, Minister Bačić pointed out that he expects the Apartment Rental Act, an important implementing act of the National Housing Policy Plan, will soon be open for public consultation, together with the umbrella Affordable Housing Act, which should enable faster construction of new housing units across Croatia.

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