The law is being amended through an urgent procedure because a total of 687 such contracts will expire by the end of the year—386 for the lease of business premises owned by the Republic of Croatia and 301 owned by local units, explained Minister Bačić.
The amendments to the law will allow a tenant who fulfills their obligations regularly to extend their lease for a period of up to ten years, with the possibility of an additional extension for another ten years.
Croatia currently has 5,067 business premises The amount of monthly rent will be determined by local government units based on the activity the tenant performs.
Croatia currently has 5,067 business premises, around 3,700 of which have signed lease agreements, while around 1,300 are not leased and are managed by State Real Estate. These premises are in the process of being renovated or in the process of tendering for lease, said Bačić.
He added that the amendments to the law would also allow the direct sale of garages to tenants of garages and garage spaces owned by Croatia or local units, specifically to users who use the garages based on a valid contract or one that has expired. There is no need for the state to manage 1,509 garages, Bačić said.
During the debate, representatives raised concerns about the rent amounts, claiming that local units can unilaterally change them.
Puljak: A price stability mechanism should be ensured It introduces an element of uncertainty; it would be logical for an entrepreneur who has bid on a particular business space and signed a contract for ten years to feel secure during those ten years, said Sandra Krpan (SDP). Ivica Ledenko (Most) also pointed out the increase in rent amounts.
The rent price can be changed at any time during the contract without the tenant's consent, which threatens the long-term plans of entrepreneurs and undermines business security, said Marijana Puljak (Centar). She believes that a price stability mechanism or an adjustment mechanism that includes both parties should be ensured.
