State-Subsidised Housing Initiative Expanded

Total Croatia News

ZAGREB, February 1, 2018 – The government on Thursday put forward to parliament a bill of amendments to the legislation on state-subsidised housing, known as POS, in order to enable a new housing programme aimed at retaining and attracting personnel lacking in certain industries, primarily in under-developed areas and to regulate the maximum sales price for POS accommodation and land.

Construction and Physical Planning Minister Predrag Štromar said that one of the most important provisions of the new law would be to ensure secured accommodation not only for state officials but public servants within the framework of a special POS scheme, according to which apartments would be built and leased out. The programme will also provide the opportunity for furnishing, thus rendering the accommodation immediately fit for living without any additional costs.

The bill proposes to regulate the maximum sales price for POS apartments based on the average sales price in 2016 as well as regulating the maximum price for building lots also based on the average sales price obtained in 2016.

In state-subsidised housing projects until now, significant deviations were noticed between the average sales price of new apartments, land and the cost of utility infrastructure and connections of POS accommodation and prices achieved in the real sector that is, the average sales price offered by companies and other legal entities without POS.

According to the State Bureau of Statistics, the average sales price of new apartments in 2016 by companies without POS amounted to 11,027 kuna per square metre which is about 41.3% higher than the average sales price of POS apartments amounting to 7,806 kuna per square metre.

The price of land too in the real sector amounted to 1,913 kuna per sq. m, which is 38.8% more than the average price of POS land of 1,378 kuna per sq. m.

The Law on State-Subsidised Housing was adopted in 2001 and has been amended several times. To date, 8,035 apartments in 238 buildings in 75 local government units have been built as part of the POS scheme. The total investment value of these 8,035 apartments amounts to 4.15 billion kuna and the state invested more than one billion kuna in subsidies. Currently, 345 apartments are under construction in five cities and municipalities (Fažana, Metković, Šibenik, Punat and Varaždin).


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