Rate of housing loans from banks in Croatia is higher than the one payed for renting. This is a problem for most Croats …
Because of the difficult financial situation, Croatian citizens often opt for subtenantship, that is they life in other people’s homes for a fee. In developed Western countries this is not so strange, as the majority of people spend a lifetime as tenants, but here the ownership of a property has always been placed high on the priority list, especially since the subtenantship binds a number of problems.
One problem is the disproportion in the price and size of the apartment, so going to a small flat has the same cost as an apartment twice as big. Quality and equipment of the flats are also not consistent with the high prices. In student centers such as Zagreb and Rijeka these problems are more prominent. A large number of tenants are living in unregistered homes and most of them tolerate it cause otherwise prices would rise. In such cases they do not enter into a legal contract, so it often happens that the owner does not fulfill his obligations to tenants or does not give them back their refundable deposit.
Since there are almost no legal applications from landlord, official figures say that there are almost no subtenants in Croatia and the last data says it is a little more than 40,000 households. However, it is estimated that the actual figure is three times higher.
Now we go back to the beginning… The Croats want their own apartment and subtenantship is considered only as a temporary situation, so they are rarely paying attention the problems.