🏡 New Croatian Government Measures for Affordable Housing – What Do They Mean for Buyers and Investors?

Affordable housing is becoming a key topic for the Croatian real estate market in 2025. The Government has announced a series of new measures aimed at making it easier to buy a first home and making the market more accessible to young families and first-time buyers. But what exactly does this mean for buyers, and what does it mean for investors and developers?

✅ Main Croatian Government Measures for Affordable Housing

1. VAT refund on your first property First-time buyers of an apartment or house will be able to claim a refund of part of the VAT, which in practice means savings of up to several tens of thousands of euros, depending on the size and price of the property.

2. Apartments exempt from property transfer tax (3%) Property transfer tax of 3% will no longer be payable on apartments and houses purchased under the affordable housing programme. This is a direct saving that makes it easier for buyers to complete the financing of the transaction.

3. Price and floor area limits To ensure the measures are effective, the state is introducing upper price limits per m² and maximum apartment sizes. The aim is to prevent subsidies from ending up in luxury projects and to ensure that support goes to those who need it most.

4. Incentives for young people and families Young people up to 35 years of age and families with children will have priority when applying, along with additional financing benefits, placing this programme on a par with the former APN subsidies.

👩‍💼 What Do the Measures Mean for Buyers?

• Lower upfront purchase costs – with the VAT refund and tax exemption, buyers can save up to 10% of the total property value.
• Easier entry into home ownership – especially for young families who otherwise struggle to compete in the market.
• Greater interest in new-build apartments – as these are the properties most likely to qualify for affordable housing programmes.

💰 What Do the Measures Mean for Investors and Developers?

• Increased demand for new builds – especially in the segment of apartments that fit within the price and floor area limits.
• More secure placement of projects – as the state is creating an additional base of buyers with benefits.
• Pressure on luxury apartment prices – buyers will likely opt in greater numbers for apartments within the programme, which may slow the sale of higher-priced units.

📈 Impact on the Real Estate Market in 2025

The Government's measures could:

• boost demand in the affordable apartment segment,
• stabilise prices in Zagreb and other larger cities,
• open up new investment in smaller towns and suburban areas where prices per square metre are lower and more easily fall within the programme's limits.

🔑 Conclusion: Will the Measures Bring Real Relief?

Measures for affordable housing are certainly a step forward – buyers will make real savings through the VAT refund and tax exemption, while investors will gain more secure demand for new builds. However, the key to success will lie in implementation and price control, in order to prevent speculation and ensure that the benefits genuinely reach those they are intended for.