ZAGREB, 13 June (Hina) - The construction sector in Croatia is growing about 7% annually, and every ninth citizen is employed in this sector, said Minister of Physical Planning, Construction and State Assets Branko Bačić said, noting that between 60,000 and 70,000 foreign workers will work in construction this year.
Bačić was speaking at the opening of the Days of the Croatian Chamber of Civil Engineers event, where he presented the National Housing Policy Plan.
He said that the plan aims to provide affordable housing to citizens who cannot secure it on their own.
The National Plan envisages the provision of 8,000 housing units for affordable rent through Publicly Subsidised Housing (POS) programmes, the construction and renovation of 2,000 housing units in underdeveloped areas, and the activation of at least 1,200 state-owned apartments, with an additional takeover of some apartments owned by the public sector.
Under the plan, through active land policy and by encouraging the work of nonprofit housing cooperatives, 1,200 housing units would be built and 9,000 housing units would be activated through the Affordable Rent Programme, with around €2 billion needed for the planned measures.
Ten key construction laws by year's end
Bačić emphasised that the ministry plans to prepare 10 key laws in construction by the end of the year, the most important being laws on construction, physical planning, energy efficiency, rental, and affordable housing. He expects quality proposals from professionals.
Responding to questions, Bačić said that all of Europe faces the problem of affordable housing, and Croatia was among the first to adopt a plan in March to make affordable housing more accessible to citizens. He added that a new rulebook is already in force, subsidising young people by refunding 50% of the VAT and the entire real estate transfer tax for their first housing purchase.
Citizens who have empty apartments will be encouraged to rent them to young families at affordable rates, with the state paying the owner the difference to the market price.
"We also plan to build rental apartments for young people together with local authorities, for which rents will be significantly lower than the market rates, and about 1,200 apartments are planned to be built within about two years," he said.
Bačić added that apartments will be built for those who cannot buy them on the market, but rental will also be enabled. The goal is to put 600,000 empty apartments in Croatia on the long-term rental market, which would stop the rise in rent prices.
The minister also noted that there is already a noticeable increase in the supply of apartments for long-term rent in the largest cities.
