There are around 3,000 flats that are state-owned and 1,900 flats that are owned by the state and managed by the Defence Ministry.

Jozo Sarac, a state secretary at the Central Office for the Management of State Property, said the flats would be sold at the price of HRK 5,808 per square metre, reduced by depreciation and position of the flat in the building and increased by 10-30 percent depending on the size of the city.

Refugees and war veterans will be entitled to a 1.5 percent discount for every year spent in exile and a 2-percent discount for every year spent on the front line in the Homeland War.

A 15-percent discount will be granted for a one-off flat purchase.

It will also be possible to buy state-owned flats with loans with a maximum 20-year repayment deadline and an interest rate of four percent.

The Defence Ministry has so far received 1,568 applications for apartment purchase, said Defence Minister Branko Vukelic, who expects 400-500 million kuna to be earned this way. The ministry would use the money to start building apartments for its own needs, said the minister.

Construction Minister Marina Matulovic Dropulic said the sale of state-owned flats was one of the measures from the government's Economic Recovery Programme, adding that the state was burdened by having to maintain the flats.

"I believe the prices are realistic and that citizens will be able to buy the flats," she said.

Deputy Prime Minister Slobodan Uzelac said that apart from the economic aspect, the decision to make state-owned flats available for sale was also important from the aspect of respect for human rights, namely the right to a home.