Croatian President: Property prices have exceeded affordability and tolerance limits

(Photo: Ured predsjednika Republike Hrvatske / Dario Andrišek)

OPATIJA, 11 June 2026 – Croatian President Zoran Milanović has warned that property prices in Croatia have risen beyond what many people can reasonably afford, saying housing costs have exceeded the limits of tolerance and financial possibility for citizens.

Speaking at the opening of the 20th Days of the Croatian Chamber of Civil Engineers in Opatija on Thursday, Milanović said Croatia remains an attractive destination for investment, but highlighted the growing challenge posed by rising real estate prices.

“Property prices are very high. The cost of housing has slowly crossed the boundary of what is tolerable and possible. The nominal growth of wages and people’s incomes cannot keep pace with it,” the President said.

Milanović suggested that the situation is partly one of the consequences of Croatia’s membership of the European Union. He stressed that EU membership should be viewed through a practical assessment of benefits and costs rather than as an ideological project.

According to the President, Croatia should continually evaluate what it has gained and what it has contributed through EU membership, while recognising that joining the bloc was a major long-term decision that cannot be easily revisited.

He also cautioned against assuming that EU membership automatically guarantees continuous improvement, saying expectations should remain realistic.

Turning to the construction sector, Milanović described it as an important indicator of a country’s development and overall national wealth. He said construction reflects both economic growth and the physical presence of a nation’s achievements.

The President praised Croatia’s tradition of quality construction, noting that buildings constructed over the past century have generally met high standards. He said maintaining quality remains a key responsibility for engineers and industry professionals.

Milanović also welcomed what he described as good cooperation between civil engineers and the Ministry of Physical Planning, Construction and State Assets.

Concluding his address, he called for efficient but balanced administrative procedures, stressing that regulations and order remain important. He also underlined the significant role played by architects and engineers in shaping the appearance, functionality and long-term legacy of the built environment.

The event brought together professionals from across Croatia’s construction sector to discuss current challenges and developments in engineering, building standards and urban development.