Only 32 of 576 local government units in Croatia managed their properties efficiently in 2012-2014, including construction land, business offices and apartments, a report by the State Audit Office shows.

Although the 576 local government units had about 17,000 employees in total, including 806 office holders, only seven counties, 19 towns and six municipalities and managed their properties efficiently, while the others did so partly efficiently.

None of the largest cities, such as Zagreb, Split, Rijeka, Osijek and Zadar, were among good property managers.

A designation of efficiency was awarded to the counties of Karlovac, Koprivnica-Krizevci, Medjimurje, Primorje-Gorski Kotar, Virovitica-Podravina, Vukovar-Srijem and Zagreb; the municipalities of Domasinec, Kotoriba, Nedelisce, Orehovica, Rakovica and Sveti Martin na Muri; and the towns of Buzet, Cakovec, Duga Resa, Gospic, Karlovac, Kastav, Ivanec, Labin, Ludbreg, Opatija, Ozalj, Prelog, Senj, Slavonski Brod, Slunj, Umag, Vinkovci, Virovitica and Zapresic.

At the end of 2014, the local government units managed nearly 22,500 business offices, 18,400 apartments and 338 million square metres of land, which generated a total income of 2.8 billion kuna (373 million euros).

During the reporting period the State Audit Office found a lot of omissions in property management and recommended actions for their removal. It found that some of the local government units did not have updated information on their properties, some had not defined their purpose, some did not keep records of revenues and expenditures for each property, some leased their properties without a public tender or without a lease contract, and that as many as 3,500 business offices (15%) and nearly 2,000 apartments were not in use.

The State Audit Office conducted comprehensive audits between February 2015 and January 2016. 

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