Split to Build 300+ Affordable Homes at €2,104/m² — Under‑45 Buyers Could Pay €1,900/m²

Split’s new housing push: what the plan means for the real estate Croatia market

If you follow the property Croatia market, the new affordable housing push in Split is one of the clearest signals yet that national and local governments are moving from promises to delivery. During a site visit to Korešnica, Deputy Prime Minister Branko Bačić and Split Mayor Tomislav Šuta confirmed plans to put more than 300 apartments into development across five sites, with a price cap of €2,104 per square metre and a VAT refund for younger buyers that can cut that to around €1,900/m².

This is more than a press announcement. It is a mix of land allocation, regulatory commitment and an ownership-and-rental mandate that will change supply dynamics in Split and affect the wider housing prices Croatia conversation. In this article we break down the locations, the financial mechanics, the timeline and what investors, homebuyers and renters should expect.

Where the new homes will be built — the five sites and beyond

City and state officials have identified five initial sites in Split for the programme. Each site is at a different stage of planning or procurement, which will influence how quickly units come to market.

• Mejaši — project contract already signed.
• Kamen — public tender currently underway.
• Ravne njive — two separate locations planned.
• Korešnica — infrastructure conditions now in place after the local agglomeration project.

Officials say the current planning and procurement work covers a capacity of more than 300 apartments. A much larger footprint could be developed in Srinjine, where the potential exists for over 1,000 housing units, though city leaders caution that final figures are not decided.

Why these sites matter

• Mejaši and Korešnica are already moving because land and infrastructure issues have been resolved.
• Kamen is at tender stage, which means builders will be selected based on those bids; timelines will depend on procurement length and any legal challenges.
• Ravne njive includes two plots, giving the city flexibility to scale the programme.

The selection of multiple sites spreads risk, keeps construction activity geographically balanced and should reduce the chance that one neighbourhood bears the entire development burden. That said, local politics and the issue of protected tenants remain live topics that could shape final delivery.

The government model: price cap, VAT relief and mixed ownership

Deputy Prime Minister and Minister of Physical Planning, Construction and State Assets Branko Bačić explained the government’s approach: build new apartments and activate unused residential properties across Croatia. Split will work with national authorities to speed planning and provide a regulatory framework.

Key policy details announced

• Maximum price per square metre: €2,104.
• VAT refund for buyers under 45: 50% VAT refund, which the government says could reduce the effective purchase price to around €1,900/m² for eligible buyers.
• Rental requirement: every building with more than 10 residential units must allocate at least 50% of apartments for rental.

These rules create a hybrid housing stock. Buildings will not be purely for sale; half the units in larger blocks are reserved for rental, keeping part of the inventory under public or regulated supply for households that cannot or do not want to buy.

What the VAT refund actually means

The announcement states a 50% refund of VAT for buyers younger than 45. That measure is aimed at lowering upfront cost to first-time and young buyers. Buyers should note:

• The refund alone does not guarantee long-term affordability; it reduces initial outlay but does not change maintenance costs, homeowner association fees or mortgage interest.
• Eligibility rules and the claim process will be defined in implementing regulations. Buyers should seek legal or tax advice before relying on the refund as a firm number in a purchase decision.

Timetable and delivery risks: when will construction start?

Officials said construction on the first developments could begin as early as 2027. That provides a fairly short runway by public-sector project standards, but there are several risks to that timeline.

Key risks and bottlenecks

• Procurement delays: Kamen is at tender stage; bids can be contested and procurement can be re-run, which delays start dates.
• Planning and permitting: even with political backing, detailed permits, environmental reviews and utility connections take time.
• Protected tenants and local concerns: Mayor Šuta specifically mentioned the issue of protected tenants; resolving occupancy and compensation matters may slow delivery.
• Construction capacity and costs: labour and materials markets can shift. A price cap helps buyers but not necessarily builders, who may face margin pressure if input costs rise.

What to watch

• Official tender schedules and procurement outcomes for Kamen and other sites.
• Permit approvals for Mejaši and Korešnica where infrastructure is already in place.
• Any municipal decisions regarding protected tenants or local zoning changes.

What this means for buyers and investors — practical analysis

From our perspective, the package is sensible in design but has trade-offs that buyers and investors should weigh carefully.

For first-time buyers under 45

• The VAT refund can make a real difference for cash-strapped young purchasers by lowering the up-front effective price to around €1,900/m². That could bring certain Split neighbourhoods within reach for households that otherwise would be priced out.
• However, buyers should budget for closing costs, possible HOA fees and the standard mortgage screening. The VAT refund will come with eligibility and administration requirements.

For investors and buy-to-let owners

• The 50% rental allocation in larger buildings reduces the pool of units that can be sold on the open market in those developments. That will limit speculative buying in those complexes but could create a clearer role for institutional rental operators.
• Rental stock that remains publicly available may cap achievable market rents in those buildings; investors must assess yield expectations against regulated or social-rental terms if those apply.
• Investors might look to smaller developments outside the “more than ten units” threshold or to secondary market activity where the rules do not apply.

For long-term owners and local residents

• Increasing supply is the orthodox remedy for housing price pressure.