Minister announces national plan for housing policy

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(Hina) - Subsidising the difference between affordable flat rentals and market prices, activating state property and modifying the subsidised flat construction scheme are models which the government is considering for the blueprint of a national housing policy plan, Minister Branko Bačić said on Monday.

Addressing a conference on the best housing policies for Croatia, which the Croatian Chamber of Commerce (HGK) and the Slobodna Dalmacija newspaper organised in Split on Monday, Construction and State Assets Minister Branko Bačić said that the the blueprint of the national housing policy is likely to be presented this week.

High property prices, especially high apartment prices, are not typical only of Croatia, Bačić said, adding that property prices rose in all EU member-states in the first ten years since their EU accession.

This is particularly evident in the Mediterranean, he added.

These trends have happened in Croatia as well, and in the meantime we adopted the euro, entered the Schengen area and the energy crisis broke out, leading to higher prices of building material and services, he said.

Bačić also mentioned that every third property transaction in Croatia is made with foreign sources.

On the other hand, data collected by the national statistical office (DZS) shows that in 2021, there were 600,000 uninhabited flats in Croatia.

Bačić told the conference that the government is considering a model of subsidising the difference between the affordable rental of flats and the market prices to encourage owners to enable lessees to have affordable rentals and to have contracts for periods of up to 10 years.

The second model is the speedy activation of unused property, such as military barracks, schools, and disused buildings that can be repurposed into blocks of flats, according to Bačić.

The third model is a modified scheme for subsidised flat construction in partnership with local authorities in cities and towns, he added.