Bačić announces 3.5 billion euros for apartments and the prosecution of illegal construction

Croatia needs three and a half billion euros to close the housing gap, stated today the Minister of Construction, Spatial Planning and State Property, Branko Bačić, at the opening of the ArhiBau fair. He also announced that next year, illegal construction will be treated as a criminal offense for the first time.

Bačić conveyed that housing is currently inaccessible to a large number of citizens, which is why one of the government’s priorities is the development of sustainable and affordable housing.

– We have practically completed the Affordable Housing Act, but we face a major challenge – financing. To close the housing gap alone, we need 3.5 billion euros, which will have a significant impact on the state budget. Discussions are ongoing with the Ministry of Finance on how to implement this. By the end of the year, the law will be in its first reading – he said.

He added that the implementation of the National Housing Policy, adopted at the beginning of the year, is already yielding results.

– We have discouraged citizens from converting apartments into tourist rentals. A decrease in the number of units in short-term rentals has been recorded, which is the first step towards stopping the apartmentization of the coast and preserving space, our most valuable resource – said Bačić.

Currently, there are three laws in public consultation that change the approach to spatial planning and construction.

– We are changing the approach and simplifying procedures. An urban project is being introduced – a new hybrid element that will allow the construction of buildings for affordable housing without amendments to spatial plans – he explained.

Among the measures that will facilitate housing solutions for young people, he mentioned tax refunds on the purchase of the first property and the development of affordable rental models. Additionally, he announced the introduction of the Rental Act, the Chamber Act, and the Act on the Operations and Activities of Spatial Planning and Construction.

– We must not lose the battle against illegal builders. Next year, we will declare illegal construction a criminal offense through the Criminal Code – concluded Bačić, emphasizing that the government is decisively intensifying the fight against illegal construction.