Hina - By the end of 2030, the government plans to build around 9,000 housing units for sale and affordable rent, including the development of residential neighbourhoods in major cities, Minister of Spatial Planning, Construction and State Assets Branko Bačić said on Thursday.
Addressing reporters, Bačić recalled that Croatia's National Housing Policy Plan until 2030 was adopted in March, and he hopes that the entire legislative package required for its full implementation will be passed by the end of this year.
One of the key elements is the upcoming Affordable Housing Act, which will be put to public consultation by the end of August and is expected to come into force by the end of the year. Bačić described it as the foundational law of the national housing strategy.
The law aims to provide more affordable housing to citizens, and new residential neighbourhoods will be built in cooperation with local authorities, including in cities such as Zagreb, Osijek, and Split. Bačić also mentioned Dubrovnik, highlighting the challenges posed by high land prices, noting that neither the city nor the state own adequate land.
The project will be managed by the state-owned Real Estate Agency (APN), with 50% of the units designated for sale, and 50% for affordable rent. Next year, local governments are expected to develop their housing programmes, indicating their needs and potential building locations.
Drop in POS housing construction
Bačić also addressed the state-subsidised housing construction programme (POS), through which 9,126 apartments have been built over the past 23 years, including only 169 last year, a decline from 300 units built in 2022.
One of the reasons for the decline is rising costs, which led to the cancellation of some public procurement procedures because contractors offered prices higher than legally allowed. Consequently, legal amendments were introduced, and the new benchmark construction price is now €1,315 per square metre (including VAT), with the maximum apartment sale price set at €2,104 per square metre.
"I am confident that with this new benchmark and the Affordable Housing Act, we will be able to reach our goal of building 9,000 housing units by the end of 2030," Bačić said.
Affordable rental programme to be put to public consultation next week
The Affordable Rental Programme, to be put to public consultation next week, aims to activate a significant number of state- and privately-owned vacant apartments for long-term affordable rent.
The programme will be implemented by the APN through a public call for property owners and potential tenants.
Owners of vacant properties (empty for over two years) can apply. They will receive two lump-sum payments equal to the local median rent, and the APN will manage all relations with tenants. For example, for a 65-square-metre apartment in Zagreb rented for six years, an owner could receive €50,000 total, with €31,000 paid upfront and the rest after three years.
Tenants who qualify for affordable rent will pay a rent to the APN based on their income, with selection determined by social, economic, and family criteria.
The difference between the affordable rent and the market median will be covered by the state budget.
Bačić pointed out that Croatia has an estimated 600,000 vacant housing units. When it comes to empty state-owned apartments, these are being renovated and will be used to house protected tenants.
Increase in long-term rentals
Bačić noted that the Law on Building Management and Maintenance, passed last year, was partly aimed at limiting short-term rentals.
According to the Tax Administration, as of 15 March, there was a notable increase of around 5,000 apartments registered for long-term rental, in line with the law's intent.
There is also a housing support law for underdeveloped areas, currently in parliamentary procedure. It includes plans to build and renovate homes for young people.
In 50 local government units, 50 multi-family buildings with 363 apartments are planned, and in 11 units, 130 family homes will be built. Around €113 million from the National Recovery and Resilience Plan (NPOO) has been secured for this.
The press conference also addressed subsidies for first-time homebuyers under 45, including 50% VAT refunds for new flats and property transfer tax refunds for older homes.
Since 5 June, the APN has received 1,130 applications, of which 713 have been processed and 503 approved - 223 for new builds, 280 for existing homes. An additional 140 applications require supplementation, and 69 were rejected.
The total amount of approved subsidies so far is €4.2 million, with the average subsidy amounting to around €8,500. The lowest approved amount was €838, and the highest €26,876.
Among roughly 700 processed applications, the average agreed purchase price per square metre nationwide is €2,330 (excluding VAT). Dubrovnik leads with €3,800, followed by Split (€3,370), Rijeka (€2,640), and Zagreb (€2,515).
Bačić added that while 700 transactions may not be a large enough sample, data indicates that housing price growth in 2025 has slowed to around 3%, suggesting a cooling of the housing market.
Bačić: Zagreb urban plan fully aligned, approval coming soon
Bačić also responded to a journalist's question about Zagreb's General Urban Plan (GUP), saying that about 15 days ago, the Ministry requested full alignment with its March recommendations. He added that since then, numerous meetings were held with the City of Zagreb, and the city has met all requirements set by his and other ministries.
"The approval can be expected very soon," Bačić said.
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