More than €9 million earmarked for subsidized housing loan program

The 8th round for subsidized housing loans or so-called APN program, for Croatian citizens under the age of 45 is underway. According to the National Real Estate Brokerage Agency interest is high. More than nine million euros have been secured for the implementation of the program, which should be enough to subsidize 5 500 loan requests for housing that is defined in the relevant legislation as appropriate.

For Croatian citizens under the age of 45 who are interested in applying for a subsidized housing loan for the purchase of an apartment, house or for the construction of a house, they must first select one of the twelve lending institutions with which the agency has a signed agreement. Construction, Physical Planning and State Property Minister Branko Bačić noted today that so far some thirty thousand apartments have been purchased, which he says is proof that the subsidy program is working.

However, industry experts have criticized the program for driving up housing prices. The president of the Association of Real Estate Agents at the Croatian Chamber of Economy, Dubravko Ranilović: “The moment you intervene in the market in this way you automatically increase demand, and raise the price for that product experiencing a growth in demand.”

This is borne out by the data, as the subsidy of thirty percent in major urban centers barely covers the average price growth recorded last year alone. According to the latest data, for newly built apartments prices range from €3000 up to €5000 per square meter, and even higher depending on the location in the city. 

This could be the last tranche of the program, as government plans on adopting a new housing policy strategy for the next ten years by the end of this year or the beginning of next year at the latest.

Source: HRT