ZGRADONAČELNIK - Željko Uhlir 2

Guest Željko UhlirHosted by Tin BašićMay 3, 2026

Željko Uhlir

About this episode

What you'll hear in this conversation

The challenge of housing affordability often lies in the middle: those who don't qualify for social assistance but are priced out of the open market. Croatia's Socially Stimulated Housing Program (POS), conceived two decades ago, was designed to bridge this gap, offering no-profit construction and favorable state-backed loans. Željko Uhlir, State Secretary at the Ministry of Physical Planning, Construction, and State Property, has been central to shaping this policy through multiple revisions. He explains how the program has adapted to economic shifts, diversified its offerings from direct sales to rental-with-option-to-buy, and even supported market purchases. Yet, a persistent tension remains: the program's success often hinges on local government cooperation, which is not always forthcoming. The conversation explores how state intervention can carve out a stable housing path for a broad segment of citizens, and why even well-designed national programs can struggle to gain traction without local alignment.

Insights from the conversation

What to take from this episode

POS was conceived in 2000/2001, after the state "lost its housing policy" by fully embracing market mechanisms post-independence. State-backed housing programs often emerge as a corrective measure, not a primary policy. They fill the specific gaps where pure market forces fail to serve segments of the population.

The POS model offers two distinct financial benefits: construction without profit margins (APN builds) and a unique loan structure where the state's portion is repaid *after* the commercial bank's, saving buyers around €10,000 on a standard apartment. True affordability in state-supported housing comes from a dual approach: controlling the initial build cost and structuring long-term financing to defer state repayment.

The 2015 introduction of POS Najam (POS Rental) mandates at least one-third of units in larger buildings be offered for rent at rates significantly below market, with the option to convert paid rent into a purchase down payment. A state housing program can evolve beyond just ownership to offer secure, below-market rental options. Structuring these rentals with a clear path to ownership addresses different life stages and financial capacities.

Uhlir distinguishes POS from "state properties" (državne nekretnine), which are legacy holdings the state aims to sell, rather than purpose-built housing for citizens. Not all state-owned housing serves the same purpose. Distinguishing between existing assets and purpose-built programs clarifies the state's active housing policy.

Beyond direct apartment sales, POS includes models for building family homes or buying construction materials with favorable loans, and "POS Plus" which allows buying *any* market apartment up to €1500/sqm with a POS loan. A comprehensive state housing strategy doesn't just build new apartments. It diversifies options to include self-builds and even market purchases, extending its reach without direct construction.

The primary obstacle to POS's broader impact is the lack of cooperation from local governments, particularly regarding land provision. Zagreb, Croatia's capital, has not participated for 15 years, opting for its own, often costlier, programs. Centralized housing programs, however well-designed, can falter without active local government buy-in, especially concerning land.

Uhlir clarifies that POS is *not* a social program but targets a "middle category" of citizens who are creditworthy but priced out of the open market. Effective state housing policy targets specific market gaps rather than trying to be a universal solution. Clearly defining the demographic it serves prevents mission creep and ensures resources are directed where they are most needed.

POS Plus was introduced during an economic downturn to help construction companies sell stalled projects by allowing citizens to buy existing market apartments through POS loans. State housing programs can serve a dual purpose: helping citizens *and* stabilizing the construction sector during economic slumps. The ability to adapt the program's scope to broader economic conditions is key to its longevity.

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