# Urban development and housing policy in Serbia and Croatia

> Live situation record from CLSTR: https://clstr.news/situations/urban-construction-and-development-in-serbia-and-croatia
> Updated: 2026-10-19T05:00:26.000Z. Sources: 20. Developments: 4.

In Serbia, homeowners performing unauthorized apartment renovations—such as enclosing terraces or partitioning rooms—face risks of official construction inspections and high costs. In Belgrade, specific safety concerns persist regarding a building at Karađorđeva 53, which residents claim has been illegally expanded by two and a half floors despite demolition orders.

In Croatia, urban development continues with a 42 million euro residential and commercial project in Zagreb’s Podbrežje neighborhood, intended to provide approximately 300 social and affordable rental apartments by the first half of 2027. To address a housing crisis and an estimated 55,000 vacant apartments, the Zagreb City Assembly officially voted on October 15, 2026, to increase the annual real estate tax from five to eight euros per square meter. Supported by the Možemo! and SDP parties, the measure takes effect on January 1, 2027, and is expected to generate six million euros for the city budget. Mayor Tomislav Tomašević defended the policy as “absolutely necessary” to incentivize long-term leasing, while opposition members from HDZ-DP-HSU and the Drito party criticized it as an attack on private property rights.

Beyond Zagreb, Zadar has also announced substantial real estate tax increases to align with other coastal municipalities. The new proposal includes rates of five euros per square meter for the Peninsula area, three euros for mainland areas, and two euros for islands, up from a previous rate of 60 cents. Critics in Zagreb have noted that because the tax is not based on property value, it may fail to effectively influence market behavior or curb rising prices.

## Timeline

### 2026-10-19: Zagreb and Zadar increase real estate taxes

Croatian cities, including Zagreb and Zadar, are significantly increasing real estate taxes, with Zagreb reaching the legal maximum of eight euros per square meter to address housing issues.

6 sources. https://clstr.news/cluster/zagreb-and-zadar-increase-real-estate-taxes

### 2026-10-15: Zagreb City Assembly approves property tax increase

Zagreb's City Assembly approved increasing property taxes to a maximum of eight euros per square meter by 2027 to combat high vacancy rates and encourage long-term rentals.

9 sources. https://clstr.news/cluster/zagreb-officials-propose-real-estate-tax-increase-to-address-housing-shortage

### 2026-10-12: Zagreb Mayor proposes increasing real estate tax on vacant apartments

Zagreb Mayor Tomislav Tomašević proposes raising real estate taxes on vacant and short-term rental properties to eight euros per square meter to encourage long-term housing availability.

7 sources. https://clstr.news/cluster/urban-development-concerns-in-belgrade-and-zagreb

### 2026-09-28: Serbia apartment renovations face inspection risks

Homeowners in Serbia face potential construction inspections for unauthorized renovations like enclosing terraces or partitioning rooms without proper permits or correct materials.

3 sources. https://clstr.news/cluster/serbia-apartment-renovations-face-inspection-risks

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Cite as: Urban development and housing policy in Serbia and Croatia. CLSTR, https://clstr.news/situations/urban-construction-and-development-in-serbia-and-croatia