Tuesday, 26 April 2022

Record Number of Applications Filed for Subsidised Housing Loans

ZAGREB, 26 April 2022 - The relevant APN agency has received a record 5,870 applications for subsidised housing loans and Construction, Physical Planning and State Assets Minister Ivan Paladina has announced additional funds for all the applications that will be approved.

Applications could be filed from 21 March to 22 April and in this, the seventh round, a new record number were filed. In the previous round, 4,739 were filed, a record at the time.

The government has set aside HRK 50 million for this purpose, but given the interest, Paladina said more funds would be necessary and that he discussed it with Finance Minister Zdravko Marić over the weekend.

"It was agreed that the funds will be ensured, so no one need worry as to whether there will be enough funds for all the applications that will be approved," he said in a press release.

Paladina said the subsidised house scheme would be analysed this year, taking into account the comments of real estate experts, notably regarding price hikes.

The record number of applications shows the importance of the scheme "whereby we are helping young families buy a home," he added.

The average approved subsidised loan is €78,000, the average repayment period is 22 years, and the average age of the beneficiary is 32.

The effective interest is 2.08% and the monthly instalment is HRK 3,035, including a HRK 1,020 subsidy, the ministry said.

In March, APN signed agreements on subsidised housing loans with 14 banks.

The eligibility criteria for applicants is that they are under 45 and that they are first-home buyers. Calculating the amount of subsidy depends on the location of the property covered by the scheme. Applicants in locations in underdeveloped and rural areas qualify for higher subsidisation.

In the families that use housing loan subsidies, roughly 5,000 children have been born since 2017, when the scheme was launched. Since then, more than 22,000 applications have been approved.

(€1 = HRK 7.5)

For more, make sure to check out our business section.

Friday, 22 April 2022

Final Day of Applications for APN Subsidies, not all to be Approved

April 22, 2022 - Another round of applications for the APN subsidies ends today. Croatia's State Real Estate Agency (APN) say that they have never received more applications, almost five thousand, but it remains uncertain if all of them will receive the subsidies. Demand is growing, and the rise in housing prices which is directly linked with the provision of subsidies does not help either.

As SiB writes, there aren't that many apartments, while potential buyers are numerous. For a few years now, the demand for apartments has been just as wild as the rising prices of these precious square metres. 

"For what was the price of a two-bedroom apartment a year ago, now you can only buy a one-bedroom apartment. In Zagreb, the average price per square meter is 2,300 euros, in Rijeka 1,900, in Split 3,000, and in Osijek 1,050 euros," shared Luka Prica, the owner of a real estate agency, with RTL.

Less than 24 hours remain until APN applications are closed. A record 4,870 requests were received, and funds are limited, with HRK 50 million provided.

First come, first serve
"All the applications that were submitted in time, up to the request number 4,100 if all documents are complete, will be processed and approved accordingly", said Goran Golenić, assistant director of APN.

In previous years, it never happened that someone did not receive the subsidies, but APN warns - we can not guarantee that it will be the same this time around. Those who have submitted their applications first are at an advantage. So far, 2,462 applications have been approved in this round.

"When the funds are spent, we will inform the competent authorities and make decisions on further actions accordingly," Golenić claims.

Better days with cheaper square metres, it seems, are not in sight.

"We are entering the Eurozone, inflation has been announced, we are witnessing an increase in the prices of materials and labor - we cannot expect a drastic drop in prices," Prica claims.

Surely, the new round of APN subsidies announced for next year will come in handy for many.

For more, check out our lifestyle section.