Zagreb - Some of the opposition parties said during the debate on the proposal to amend the State-Subsidised Housing Construction (POS) Act on Tuesday that it would not have a positive impact on housing affordability.
On the other hand, the ruling Croatian Democratic Union (HDZ) reiterated that it would alleviate the negative effects of rising housing prices and increase the supply of affordable housing.
"The POS programme directs public funds towards acquiring private ownership, which often later becomes part of speculative capital on the real estate market. Despite the state investing significant funds, it does not increase its housing stock, which would influence housing affordability," said Marin Živković (We Can!).
Živković recalled that the first POS Act was passed in 2001, and the state, through this model, has invested hundreds of millions of euros, resulting in the construction of 9,126 apartments. However, he warned that a significant portion of the apartments built under the POS scheme had been sold at much higher prices, some are on the rental and short-term rental market, and others are not used for housing at all.
Mišo Krstičević (Social Democratic Party) also believes that the affordable rental programme will not succeed as intended, as foreign experiences show.
Peršurić: It will only work if local governments receive state support
Loris Peršurić (Istrian Democratic Party) believes that the adoption of the National Housing Policy Plan is a step in the right direction but warns that it will not be enough without a comprehensive strategy that includes spatial planning, strengthening the public housing fund, encouraging rental as a permanent solution for some, and similar measures.
He welcomed the announced affordable rental model but believes that it can only function if local governments receive full legislative, financial and administrative support from the state.
Milorad Pupovac (Independent Democratic Serb Party) also believes that the proposed measures should ensure the reactivation of the POS housing scheme, which is currently blocked. He also sees the measure to return 50 percent of VAT to people under 45 who are purchasing or building their first property as a step forward. However, the question is how many people in this age group are employed, how many have permanent or fixed-term contracts, and whether they have sufficiently high salaries, he said.