EIB Partners with Croatian Cities to Address Affordable Housing Challenges

EIB Partners with Croatian Cities to Address Affordable Housing Challenges

(IN BRIEF) The European Investment Bank (EIB) is partnering with five Croatian cities—Zagreb, Rijeka, Split, Osijek, and Varaždin—to address rising demand for social and affordable housing. Through an advisory agreement funded by the InvestEU Advisory Hub, the EIB will provide expertise to develop guidelines, identify financing strategies, and assess long-term housing needs. City leaders emphasized the importance of affordable housing to support vulnerable populations, attract young families, and promote sustainable urban growth. With housing prices in Croatia having risen by 80% over the past decade, this initiative aims to deliver inclusive, energy-efficient housing solutions while leveraging best practices from across Europe.

(PRESS RELEASE) LUXEMBOURG, 21-Nov-2024 — /EuropaWire/ — The European Investment Bank (EIB) has joined forces with five Croatian cities—Zagreb, Rijeka, Split, Osijek, and Varaždin—to expand social and affordable housing in response to increasing demand. Through an advisory agreement, the EIB will support these cities in addressing challenges related to rising housing needs, particularly for socially vulnerable and low-income residents.

Croatia is facing a significant housing affordability crisis, with home prices increasing by 80% over the past decade, one of the sharpest rises in the EU. This partnership will leverage the EIB’s expertise in sustainable housing to develop local guidelines, identify financing strategies, and assess long-term housing needs. Funded by the InvestEU Advisory Hub, the initiative draws on best practices from across Europe to address Croatia’s specific challenges.

EIB Vice-President Teresa Czerwińska highlighted the bank’s commitment to inclusive urban development. “Affordable and energy-efficient housing is key to building resilient communities. Our collaboration with Croatian cities will help deliver sustainable solutions to meet growing demand while fostering social equity.”

City leaders have welcomed the initiative:

• Zagreb Mayor Tomislav Tomašević underscored the importance of creating quality living conditions for all residents, citing the city’s planned affordable housing project in Podbrežje with 288 apartments for 1,000 residents.
• Split Mayor Ivica Puljak emphasized the need for systematic, long-term solutions and praised the EIB’s technical assistance for enabling sustainable urban infrastructure development.
• Rijeka Mayor Marko Filipović stressed the economic and social importance of accessible housing, particularly for young families, and called for collaboration among stakeholders.
• Osijek Mayor Ivan Radić highlighted affordable housing as a strategy to attract and retain young families, with EIB advisors helping develop tailored housing models for the city.
• Varaždin Mayor Neven Bosilj pointed to ongoing efforts under the POS model, including a 180-apartment complex already under construction, as part of the city’s commitment to meeting local housing needs.

The EIB has a long history of supporting affordable housing in the EU, providing €13.4 billion for urban development and modernization projects over the past five years. Together with the European Commission, the bank aims to enhance its efforts in delivering affordable housing solutions in the years to come.

This collaboration marks a significant step in addressing Croatia’s housing challenges, ensuring that urban centers are equipped to meet the demands of their growing populations while fostering sustainable and inclusive development.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

InvestEU

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Media Contact:

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SOURCE: European Investment Bank