A dynamic alliance of Attica municipalities aims to dismantle construction bonuses, creating widespread opposition to the New Building Regulation (NOK) from the north to the south of the city, resulting in a freeze on construction activity for permits seeking to exploit the law’s incentives.

The market has stalled, with builders halting permit applications until the situation clarifies. Local government officials report that developers have stopped requesting permits as it becomes clear that mayors opposing large and unsightly buildings will block any permit using these bonuses.

Additionally, there is concern that even if all obstacles are overcome, the NOK provisions might be deemed unconstitutional, complicating matters for citizens due to the pending decision from the Council of State’s plenary.

The recent decision by the Council of State’s E’ section, signed by section president Margarita Gortzolidi, confirms the market’s disruptions and the risks for citizens not exercising due caution. The decision accepted the Municipality of Vari-Voula-Vouliagmeni’s request to suspend permit issuance directly by the mayor to the Building Service. It stated that continuing to issue permits could lead to irreversible consequences, particularly if the provisions are found unconstitutional. This could result in serious and irreparable damage to the area’s residential environment, necessitating the demolition of structures to rectify the situation.

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The Council of State’s detailed order shows its sensitivity to the issue, unlike typical brief decisions, following a comprehensive memo from the Ministry and counterarguments from the Decentralized Administration. The government’s indecision on building heights and slow response to the issue could significantly impact construction activity. Vari-Voula-Vouliagmeni Municipality, a leader in permit issuance, faced a drastic reduction in permits issued this year compared to last year. Mayor Grigoris Konstantellos highlighted the sharp decline in construction activity. Dimitris Xynomilakis of SADAS/PEA predicts Athens will be stuck maintaining old buildings due to fears of losing height and size. Engineers lament the lack of responsible authorities ensuring legal building terms, hindering their practice.

Movement against NOK

The Council of State decisions and the resulting reactions show that the issue of construction bonuses is escalating, with more municipalities joining the opposition. This undermines the government’s recent emergency measures and pressures from engineers, as the suspension of permit issuance spreads.

Following Vari-Voula-Vouliagmeni, Alimos, and Kifisia, municipalities like Papagou-Cholargos, Vrilissia, Marousi, and Moschato-Tavros are also opposing NOK, with Nea Smyrni and Athens joining. The movement began with height restrictions around the CΟCΟ-MAT hotel in Makrygianni. Reports indicate that major Thessaloniki municipalities are also preparing to join.

The movement against NOK is gaining strength, with the latest Council of State decision paving the way for escalating reactions by removing obstacles and restrictions set by the Decentralized Administration. This nullifies directives from various mayors.

Marousi Mayor Theodoros Ampatzoglou stated that the recent amendment by the Ministry of Environment and Energy is a step in the right direction but does not solve the problem. Thus, suspending building permits is necessary to prevent overbuilding in an already burdened urban fabric, harming the city and residents’ quality of life.

Municipalities align with KEDE to protect urban and environmental balance threatened by NOK provisions and prevent further degradation. Hundreds of buildings benefited from NOK’s bonuses. Kifisia, Vari-Voula-Vouliagmeni, and Alimos saw numerous permit applications using these incentives.

The Amendment

Municipal opposition and Council of State decisions weaken the Ministry of Environment’s initiative to reduce height tensions. The Council of State empowers municipalities to curb rampant construction. The recent amendment restricts NOK bonuses for environmental upgrades to low-density areas and maintains bonuses for green roofs and energy-efficient buildings.