Owners will be asked to register vacant flats in affordable rental programme

(Hina) - Physical Planning and State Assets Minister Branko Bačić said on Friday the National Housing Policy Plan envisages inviting owners of properties that have been vacant for over two years to register them in the affordable rental programme, for which they will be compensated by the state.

“For the first time, we are introducing a public-private partnership for privately owned flats that will be managed by the state through the Real Estate Transactions and Mediation Agency (APN). APN will issue a public call to all owners whose flats have been vacant for more than two years to register them in the affordable rental programme, and then APN will manage the property on their behalf," Bačić said at the plan's presentation.

If the owner agrees, they will sign a contract with APN for a period of three to ten years, depending on their preference. In return, the state will pay them, in two installments, an amount equal to the median rent for each month of the contract's duration.

For instance, the owner of a 65-square-metre flat in Zagreb who signs a six-year contract would receive a little over €42,000, the first payment would be made immediately after signing the contract, and the second one over the duration of the contract, Bačić said.

While the exact installment amounts are still being determined, he said the first installment would not be less than 50% of the total amount.

This measure aims to increase the number of vacant flats available for rent, while guaranteeing legal security for property owners.

“We believe that with the policies and plans of the European Union, the real estate market will stabilise," Bačić said.

In addition to landlords, APN will issue a public call for tenants, with rent set at 30% of the household's disposable income after paying utilities.

Around 14,000 to 15,000 flats are built annually in Croatia.

To boost this figure, the ministry has proposed two measures. The first is subsidised housing, which was introduced in 2001. APN, as the new central body for implementing subsidised housing, will work with local governments to build new housing developments, with half of the flats for sale and the other half for affordable rent. The second measure involves incentivising private investors to build.

"The state will encourage private investors to build in areas designated for affordable housing by offering simplified, faster, and cheaper access to land, but with the requirement that a certain percentage of flats in their buildings must be reserved for affordable housing," Bačić said.

The National Housing Policy Plan also includes a simplified and expedited process for building family homes in rural areas.

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