Croatia plans to build or renovate 20,200 apartments and family houses by 2030 under a new Affordable Housing Law, requiring around 2 billion euros ($2.15 billion) in funding, Spatial Planning, Construction and State Assets Minister Branko Bačić said on Thursday.
Presenting the draft legislation, Bačić said Croatia lacks about 236,000 housing units to fully establish affordable housing, contributing to young people leaving the parental home later than in most European Union countries.
In Croatia, young adults leave home at an average age of 33, compared with the EU average of 26, he said.
Under the proposed law, the government aims over the next four years to build or renovate 20,200 housing units. Of these, 8,000 new apartments would be constructed through the state-run Real Estate Agency (APN), while about 9,000 vacant apartments would be activated for affordable housing.
“Some may say that is too little, but in the 24 years of APN’s existence, 9,000 apartments have been built in total,” Bačić said.
The programme is expected to require about 2 billion euros by 2030 and a further 3.5 billion euros between 2030 and 2034, depending on state budget capacity and available funding under the EU’s next multiannual financial framework for 2028–2034.
The new law would replace the existing Socially Subsidised Housing Construction Act. It would require that in residential buildings with more than 10 apartments, at least 50% be designated for rental rather than sale. In buildings with fewer than 10 units, all apartments would have to be for rent.
Beneficiaries of affordable housing would be prohibited from selling their apartments for 35 years, except in cases such as illness, death, divorce, or relocation.
Target groups include people under 45, families with children, workers in shortage occupations, and vulnerable groups such as those over 65, persons with disabilities, families with children with developmental difficulties, and former protected tenants.
Eligibility would be based on income thresholds set at 2.5 times the local median net salary for a single applicant, with the limit increasing by 0.5 of the local median salary for each additional household member.
Construction costs are currently estimated at 2,104 euros per square metre, Bačić said, adding that the final price would depend on factors such as land acquisition. In less developed municipalities, beneficiaries could pay as little as 60% of that amount.
Bačić stressed that the programme cannot proceed without the consent of local governments, rejecting opposition criticism that the law would undermine constitutional powers of municipalities. He said urban planning procedures would be streamlined, but construction would require local approval.
The draft law is expected to be submitted to the government next week and then sent to parliament for debate within about 10 days.