Thousands of property owners are holding their breath on the regulations regarding off-plan building for plots that do not face a recognised road after the Prime Minister’s announcements at the Thessaloniki International Fair, in which he raised hopes of a solution to this Gordian knot.

Although the final solution to the problem will be provided with the completion of urban planning in about three years from now, the market is hungry for a transitional solution in order to make use of properties that are currently considered trapped into regulations that are being written and erased again and again due to economic, scientific and environmental opposition.

But off-plan building is not the only thorn in the side of the market. The problem that is taking place in the real estate market also sustains the confusion that prevails in the country’s municipalities with the building bonuses of the New Building Code (NOC) for which a powerful brawl between the local government, the government and the Technical Chamber was played out in the past period. The fire has not been extinguished, although the spotlight has been turned off by having on one side the Local Authorities (LAs), who have decided to suspend the issuance of new building permits using bonuses, deeming it unsafe to erect buildings before the Supreme Court of Appeal rules.

They are spending normally

On the other side are those who continue to build with existing building conditions, as building permits were issued before the Ministry of Environment and Natural Resources measures that cut floors, regardless of the final ruling of the Council of State, which is not expected before 2025. As can be seen from the facts, the issue with building bonuses which escalated in the past months with the municipalities of Varis-Voulas-Vouliagmeni and Alimos as protagonists continues to plague citizens, with a recent incident involving the construction of a building in Kefalari, which ended up at the Kifissia Police Station.

It was a building permit issued with the building bonuses of the NOK and for which the residents of the area appealed to the State Council and achieved the suspension of the works, claiming that the urban planning dimensions of the building have been violated both in terms of the building factor and in terms of coverage, volume and height.

However, the developer continued the work undisturbed, taking the conflict with the residents to the extreme. He allegedly started work on safety measures on the building after the work was halted on August 26 and eventually ended up preparing (according to witnesses) to concrete the second floor supports, resulting in the case ending up in the Kifissia Police Department. The matter required the intervention of the mayor, Vassilis Xypolytas, whose decision revoked the permit, allowing permission only for work on the property’s security measures, as required by regulations. Residents in the area claim that the developers are trying to create a fait accompli by using the permits for security work around the building for normal work.

Strict bond

At the same time, there is a complete blackout on the regulations the government will bring in for off-plan building, specifically for plots that cannot be built on because they do not face a recognised road. The relevant regulation, whose development was completed in the spring, was withdrawn due to the strong opposition to controversial provisions that led to the pre-election withdrawal of the proposed institutional framework.

“It is very important to observe basic rules of sustainability in what is built from now on, with respect for the environment and in compliance with decisions of the Council of State,” Mitsotakis said from the floor of the TIF, admitting that the case of off-plan building is a difficult puzzle to be solved, announcing the announcement of measures in the coming weeks. He, however, also sent the message that the next regulation should send out, saying that the state should be prepared to put the brakes, where necessary, on islands where it is considered that the situation has reached a point where the infrastructure is actually being tested.

Sources say that the relevant work on off-plan building has not been completed, suggesting that any regulation around the burning issue will not come earlier than the end of the year. Some are even discounting significant changes from the original provisions unveiled months ago.

For example, it is said that the forthcoming legislation will not be horizontal in nature, as it appears to select specific planning and zoning criteria by region and differently for islands, especially those under heavy settlement pressure. A crucial factor is the carrying capacity criterion per area, but also the architecture of the regulation in order to incorporate the observations of the CoE.