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EIB Provides Strategic Guidance for Affordable Housing Development in Croatia’s Major Cities
2024-11-22 00:00:00

The European Investment Bank (EIB) is stepping in to support affordable housing initiatives across Croatia’s five largest cities—Zagreb, Rijeka, Split, Osijek, and Varaždin. As housing demand surges and prices soar, the EIB aims to equip these cities with the expertise and resources necessary to develop sustainable, inclusive housing solutions that address the needs of socially vulnerable and low-income residents.

Addressing Croatia’s Housing Crisis

Croatia is experiencing one of the fastest rises in home prices within the European Union, with property values climbing by approximately 80% over the past decade, according to the European Parliament. This growing affordability gap has prompted the EIB to step in with its advisory services, helping local governments design impactful solutions to alleviate housing shortages.

EIB’s Role in Affordable Housing

Through the InvestEU Advisory Hub programme, the EIB will collaborate with Croatian cities to:

  • Develop guidelines for affordable housing projects.
  • Assess current policies and identify areas for improvement.
  • Project housing needs and investments over the next 10 to 20 years.
  • Share best practices from across Europe to inform local strategies.

EIB Vice-President Teresa Czerwińska emphasized the bank’s commitment:
“Supporting social infrastructure, including housing, is a key priority for the EIB. This partnership with Croatia’s cities underscores our dedication to fostering inclusive, energy-efficient, and accessible housing solutions that benefit citizens and strengthen local communities.”

City-Specific Initiatives

Zagreb:

Mayor Tomislav Tomašević highlighted the city’s focus on creating quality living conditions through initiatives such as the construction of 288 affordable housing units in Podbrežje. This project will accommodate over 1,000 residents and is part of Zagreb’s broader effort to regulate rental prices and enhance community well-being.

Split:

Mayor Ivica Puljak emphasized the need for systematic and sustainable solutions at both national and local levels. Split’s collaboration with the EIB includes leveraging the EIB Framework Loan for Urban Infrastructure Development to lay the groundwork for long-term affordable housing initiatives.

Rijeka:

Mayor Marko Filipović stressed the importance of social and affordable housing for young families and socially vulnerable groups. Rijeka is actively investing in policies to support subsidized housing and benefits for families, aiming to balance economic and social stability.

Osijek:

Mayor Ivan Radić outlined plans to attract and retain young families through affordable housing models tailored to local needs. The free advisory services provided by the EIB will help Osijek develop effective solutions for sustainable growth.

Varaždin:

Mayor Neven Bosilj highlighted the city’s unique approach to social housing, with 180 apartments under construction as part of the POS model. The city is prepared to expand these efforts with EIB guidance, utilizing available land to meet growing demand.

EIB’s Broader Impact in Croatia

The EIB has been a long-term partner for Croatia, financing projects that align with EU objectives. Over the past 25 years, the bank has provided €13.4 billion in funding to support sustainable urban development across Europe. In Croatia, this includes initiatives to modernize infrastructure, improve living conditions, and address climate goals.

InvestEU: A Catalyst for Sustainable Growth

This initiative is part of the broader InvestEU programme, which aims to mobilize €372 billion in investments across the EU. By leveraging public and private funding, InvestEU supports strategic priorities like the European Green Deal and the digital transition while streamlining access to financial resources for projects like affordable housing.

A Path Toward Inclusive Communities

Through its collaboration with Croatian cities, the EIB is helping to create inclusive, resilient communities by addressing housing challenges head-on. By combining local initiatives with international expertise, this partnership sets the stage for a sustainable future where affordable, energy-efficient housing is within reach for all.