Split’s housing squeeze – dreams of homeownership fade

Split’s housing squeeze – dreams of homeownership fade

Prices of apartments in Croatia have been rising sharply in recent years, and affordable rental apartments are becoming increasingly difficult to find.

Economic consultant Ivica Žuro has told HRT that a young person in Split can only get their own apartment if they inherits it.

“If they are lucky, and they have has some aunt, uncle, or grandparents who have passed away and have only them to pass it on it,” he said. 

Zdravka from Split told HRT that due to the rising prices, she has had to move many times, even three times during her pregnancy.

“It was terrible. You worry about the future, you wonder if you should even bring a child into such a world in such circumstances, which is actually very sad. Renting in Split… for a one-bedroom apartment, they ask for over 600 euros plus utilities, which then adds up to over 1000 euros. It’s terrifying. For the rest of the month, it’s best not even to eat, let alone think about buying shoes or any piece of clothing or anything. The family system works for social cases,” she said.

Agent: “No one calls us anymore. The change in prices is terrible.”

Where have Split families gone? Danijela Čaleta, a real estate agent, wonders this every day.

“They’re gone. They can’t afford to call real estate agencies. Before, when apartments had decent, normal prices, then no one had a problem paying for agency services, mediation. People were happy because they felt safer when they went through a real estate agency. We would mediate, do everything that needs to be done, organise, make contracts, accommodate people…

Split

People would feel some satisfaction and some peace, and that was some decent money they could set aside for themselves. Those were two-bedroom apartments on average for rent from 350 to 500, 550 euros, and now it’s a terrible change. Two-bedroom apartments range from 700-800 euros, up to 1200-1500 euros,” she said, adding that all these families have been consumed by tourism.

How big of an apartment can you buy with an average salary?

Ivica Žuro says he has calculated that a person with average Croatian earnings in Split can buy a property of 20 square meters with a loan of up to 81,000 euros to be repaid over 30 years.

“In Zagreb, the situation is somewhat more favourable. Here a young person can get 27 square meters,” he adds.

“When we bought our first apartment many years ago, there was a measure that young families without real estate didn’t have to pay that so-called tax, that these families were exempt,” says Sonja Šumić.

“There are four of us now, and we’re looking for something bigger. Currently, we’re renting. We’ve come to the point where renting is equal to some instalment of a loan. When someone rents you an apartment that is phenomenally arranged, renovated or new, and asks for 700 euros for it, then you know why you’re paying. But when you have a situation where someone rents you an apartment whose building was built in 1968 and in the bathroom, you still have tiles from 1968, and asks for 650 euros, that borders on madness,” says Sonja.

Split

“I feel like I’m only working to pay the state back. Pay electricity, water, loan instalment… you work just to cover that. You can’t actually live. That’s not life. Our freedom has been taken away from us. We’ve been turned into slaves,” says Zdravka, who believes that young people should have the opportunity to live separately from their parents, to start their own families and get a chance, instead of moving every couple of months.

“I didn’t come here to play the victim, although we’re all mostly victims of this system that is absolutely unsustainable. No reforms will help us without some concrete reconstruction, but I’m convinced that I will succeed because I’m a fighter. But we don’t all have the same mindset, we don’t all have the same opportunities, we don’t all have the opportunity for our families to have our backs to some extent. I’m sorry that this country is truly anaemic,” Zdravka said to HRT.