POS – Programme of state-subsidised housing construction

As a potential buyer of an apartment under the POS housing programme, contact the municipality or the city

Socially stimulated housing (POS programme) is implemented through the construction of apartments, i.e. residential buildings, organised in a way that makes use of public and other means to cover costs useful, ensures the return of those funds, enables the sale of apartments with instalments on more affordable terms than market terms in terms of interest and repayment deadlines, and enables the rental of constructed apartments with the possibility of buying them.
The POS programme was launched with the aim of enabling the citizens of the Republic of Croatia to solve the housing issue on terms significantly more favourable than the market. The POS programme also contributes to the development of construction as an economic branch and is a multiplier of general development.

The benefits of the terms and conditions of the POS programme in relation to market terms can be divided into two groups:

credit line benefits
benefits related to the price of m2.

Program credit line

The POS programme credit line enables the use of loans without guarantors, with an average interest rate of less than 1.8%, minimum ancillary costs, with a repayment term of up to 30 and 31 years, respectively, in case you decide to use 1 year grace period.

Credit terms and conditions

average annual interest rate 1,8%
loan repayment period 30 + 1 year grace period
no guarantors

Average sale price of the dwelling

The average sale price of an apartment per m2 of useful or sales area on a single dwelling cannot be higher than the Ethalonian price of building a m2 apartment increased by 50%. The Ethalonian construction price is EUR 902,52 per square metre of the useful floor space of the apartment, which includes the cost of construction with VAT. The costs of up to 50% of the Ethalonian construction price relate to land, the development of utility infrastructure and connections to infrastructure, and the design, supervision and water contribution, amounting to up to EUR 451.26 per m2 of useful floor space (VAT).

The maximum apartment price from the POS programme is 1,350 EUR per m ² of useful apartment surface.

Who can participate in the POS Programme

The right to buy an apartment under the POS Programme is available to all citizens - nationals of the Republic of Croatia, with priority given to protected tenants who are using an apartment owned by a natural person, and those citizens who are acquiring a property for the first time and whose housing issue is not appropriately settled, i.e. they do not own a housing unit that is adequately equipped with utility infrastructure (water, sewerage, electricity) and that meets the hygienic and technical requirements for healthy housing, of the size of about 35 square metres of the usable floor area for one person, and about ten square metres for each further person.

Candidates must be creditworthy. Creditworthiness is established based on the prescribed documents that every candidate from the priority list shall submit to the commercial bank.

To prevent misuse at re-sale and renting out of apartments purchased under the POS Programme, the latest Amendments to the Act from July 2019 introduced the ban on the rent or sale of unpaid apartments purchased under the POS Programme, which is defined in the apartment purchase contract. Should a buyer of a POS apartment decide to sell or rent out the POS apartment, the Agency for Transactions and Mediation in Immovable Properties (APN) shall inform thereof the bank that has granted the loan, and the bank shall declare the loan’s full maturity and initiate compulsory payment collection. In such a case the POS apartment buyer shall have to pay to APN the difference between the contracted purchase price and the established market value of the property on the date of signing the contract. The state shall thus collect from such buyers all the funds invested in their subsidies, regardless of the point of time prior to loan expiration at which the apartment is offered for sale or rent. The ban on selling or renting out POS apartments also applies to apartment purchase contracts concluded before entry into force of those Amendments to the Act, and for which a period of ten years from the date of their signing has not expired.

Procedure for purchasing a POS apartment

The procedure of apartment selection and purchase takes place in several steps:

Local self-government units carry out surveys on housing needs or announce a public call for apartment purchase under the POS Programme
Presentation of the POS Programme upon announcement of the call for establishment of the Priority List
APN, or the public institution and the local self-government unit respectively, sign a pre-contract on mutual rights and obligations regarding the construction of buildings under the POS Programme, as well as a contract on the transfer of property rights on land for the construction of buildings
Implementation of a public tendering procedure for selection of the designer, with the participation of the City representative, development of design documents and obtaining of building permits
Implementation of a public tendering procedure for selection of the contractor and supervisor, with the participation of the City representative, conclusion of the contract on construction and the contract on performance of the tasks of expert supervision and consulting
Conclusion of the contract on mutual rights and obligations regarding the construction of the building under the POS Programme
Construction of the building
Presentation of apartments to candidates from the Final Priority List
Selection of apartments
Conclusion of preliminary apartment purchase contracts
Buyers conclude loan contracts with commercial banks
Completion of construction and obtaining of the use permit for the building
Apartment inspection and takeover with buyers