Justice, Administration, and Digital Transformation Minister Damir Habijan assured opposition MPs on Thursday that equalizing the property purchase rights of buyers from Croatia and OECD countries would not significantly impact Croatia’s real estate market.

The equalization of property purchase rights for buyers from Croatia and OECD countries is part of the amendments to the Property Ownership and Other Real Rights Act. The opposition has expressed concerns that these changes will further exacerbate the already significant issue of affordable housing, reports Hina. 

OECD Property Rights and Market Impact

Currently, 36 out of 38 OECD member states can already acquire property ownership rights in Croatia based on the principle of reciprocity. The only exceptions are Mexico and Costa Rica, said Minister Habijan.

“The data on 10,320 requests for foreign property acquisitions in Croatia from 2013 to 2024 clearly shows that we should not expect a significant increase in interest from foreign buyers,” the minister emphasized, adding that Croatia has the option to impose restrictions on certain OECD member states for a specific period.

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Out of all registered properties in the land registry, 4% (around 321,000) are linked to foreign nationals' tax numbers (OIB), while only 0.5% belong to OECD member citizens, he noted.

Opposition Concerns Over Rising Property Prices

Peđa Grbin (SDP) warned about Croatia’s housing crisis: “Instead of taking concrete action, we’re proposing something that won’t help and will actually make things worse,” he said, citing the average price per square meter in Istria at €3,800.

Miro Bulj (Most) raised concerns about foreigners purchasing property in protected natural areas, calling it a disaster. “We’re allowing the wealthiest buyers to acquire our natural resources and most protected areas,” he said.

However, Minister Habijan responded that such issues are regulated by the Nature Protection Act, not the real estate law.

Marin Miletić (Most) expressed frustration: “We’re talking about selling Croatian land. Soon, a Japanese or Australian buyer will own the house my father built in Kastav.”

Government Defends Amendments

Danijela Blažanović (HDZ) emphasized the introduction of restriction measures, which were previously not included in the law.

She also noted that real estate experts argue that economic conditions in foreign buyers' home countries are a more significant factor than administrative changes, rejecting opposition claims that property prices will rise as a direct result of this law.