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Bačić on affordable housing contracting cites example from Gruž: State contracts rent for 1,300 euros per month, families pay 260 euros

Deputy Prime Minister Branko Bačić presented the first results of the affordable rent program on Friday, while MP Damir Barbir claims the state is not using its own vacant properties and is putting pressure on small landlords

Foto: Wikipedia (Dubrovnik)
Summary
  • Around 1,000 owners have applied with vacant apartments for the affordable rent program; 295 are immediately ready for use.
  • In Gruž, Dubrovnik, the state is contracting rent of 1,300 euros, pays the owner 90,000 euros in advance, and the family pays only 260 euros per month.
  • MP Damir Barbir criticizes the government for planning to activate only 9,000 of 600,000 vacant apartments, while burdening 110,000 small landlords with new levies.

Deputy Prime Minister and Minister of Physical Planning, Construction and State Assets Branko Bačić spoke about the affordable rent program, which should make it easier for citizens to solve their housing issues, for HTV's central news. He confirmed that around a thousand owners of vacant apartments and houses have applied so far, and after checks, it was determined that 295 housing units can be used immediately. By the end of the year, it is expected that approximately 500 of them will be operational, in addition to state-owned apartments, Dubrovniknet reports.

Bačić explained that the first contracts are already being signed. As an illustration, he cited Zagreb's Trešnjevka neighborhood, where a couple with monthly income of around 2,000 euros will pay 480 euros for a 50-square-meter apartment, instead of the previous 700 euros, saving approximately 220 euros per month.

Family in Gruž will pay only 260 euros

An even more concrete example comes from Dubrovnik. The Agency for Legal Transactions and Real Estate Brokerage has prepared a contract for a family house in Gruž with an area of 85 square meters. A monthly rent of 1,300 euros was agreed with the owner, approximately 150,000 euros for a 10-year period. The state will pay him 90,000 euros immediately upon signing the contract to renovate and equip the property. "A family of five will move into this family house and will pay only 260 euros. So, this family in the City of Dubrovnik will save 1,000 euros per month," the minister emphasized.

In addition to vacant privately owned properties, the state is also including its own newly built apartments in the program. Bačić said that APN and the relevant ministry are currently building 1,300 housing units. "They will be ready for occupancy during next year, and probably part of them during 2028," he announced. After the ministry's call, 272 local and regional self-government units expressed interest in participating; their locations will be analyzed, and some will be included in the preparation of new multi-apartment buildings and family houses as early as next year.

Barbir: State plans to activate only 1.5 percent of vacant apartments

Damir Barbir, an MP from the Centre party, issued sharp objections to the government's housing policy. He claims that Croatia has almost 600,000 vacant housing units, but the state plan until 2030 envisions the activation of only 9,000 of them, just 1.5 percent, DalmacijaDanas reports. "The message is clear: Croatia does not lack real estate, but serious policy. And that policy must start with the state itself," he said.

Barbir pointed out that of approximately a thousand reported properties, only 295 are currently usable, and believes that before imposing new obligations on citizens, the authorities should publish how many vacant apartments they own, what condition they are in, and within what timeframe they plan to renovate them. "The same state that pays a party army and uncontrollably spends public money does not know how to activate even its own property," he said.

Instead of focusing on the large number of unused apartments, the MP says, the government is creating pressure on approximately 110,000 small family landlords through increased levies, the requirement for neighbor consent, and new reclassifications. He reminds that these citizens already regularly pay taxes, tourist fees, and membership fees, maintain their properties, and bring in guests whose spending stays at the local level. "Their housing stock is several times smaller than the number of vacant apartments, and a large part of these properties, especially in seasonal areas, is not even suitable for permanent housing," he added.

Barbir said that private owners will not be attracted to long-term rent by new obligations, but by trust and legal security. Among the solutions he proposes are tax relief, simpler contracts, more secure rent collection, and faster resolution of court disputes between owners and tenants. "Housing policy must not be about finding a culprit among citizens. The problem is not people who use their property, but a state that cannot activate even its own," he concluded.

FAQ
How many vacant apartment owners have entered the affordable rent program? +
So far, around a thousand owners have applied, and after checks, 295 housing units are currently immediately available for use.
What does the program look like in the case of a house in Gruž, Dubrovnik? +
For an 85-square-meter house, the state has contracted a monthly rent of 1,300 euros with the owner, immediately pays him 90,000 euros for renovation, and a family of five will pay only 260 euros, a saving of 1,000 euros per month.
What does MP Damir Barbir criticize? +
He warns that of almost 600,000 vacant apartments, the state plans to activate only 1.5 percent by 2030, and instead pressures about 110,000 small family landlords with new levies.
What is the state building under the affordable housing program? +
Currently, 1,300 new apartments are under construction through APN and the relevant ministry, which will be occupied during 2027 and 2028.

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