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Reforms and Investments

Supporting reforms to foster an attractive business environment and increase competitiveness

Funding Programme
Year
  • 2021

State property management optimization programme

The European Commission supported Croatia in improving public governance and preparing long-term plan for activation of the state-owned real-state assets. With EU-funded technical assistance, the project delivered an in-depth assessment of existing legislative frameworks and institutional capacities, and recommendations on key areas of the real estate portfolio management, in order to introduce more flexible and market-oriented management practices. 

Context

The Croatian government controls substantial amounts of real estate assets in the country, owned by a variety of stakeholders. Before the project, Croatia was lacking a coordinated approach to real estate asset management, and there was no single inventory or database detailing the existing portfolio. A significant part of the portfolio was under-commercialised or idle, with no commercial or public use. Lack of capacity within relevant authorities, complicated procedures and a fragmented legal framework were behind these inefficiencies. 

Support delivered

The European Commission, via the Technical Support Instrument, supported the Croatian Ministry of Physical Planning, Construction and State Assets and the State Property LLC through a project spanning 24 months. Activities included: (1) diagnostic reports on the status of property management in Croatia and the capacities of the beneficiaries, (2) a comparative analysis of the best EU state-owned real estate management practices, (3) recommendations for an IT tool for real estate management, (4) recommendations on methodology and strategic approach to property management, and (5) trainings and workshops. 

Results achieved

The project introduced a more efficient, strategic, and systematic management of a significant portion of state-owned properties. It strengthened institutional capacities through organised training for officials, knowledge and experience exchange with colleagues from other EU countries. The project's results and recommendations were also incorporated into pilot projects in three Croatian cities. During the project new legislative changes were introduced related to the state-owned property management, including the adoption of a new law on state assets management that aims to reduce the portfolio of state-owned real estate.

More about the project

You can read the documents related to the project here: