Even legislative interventions are being considered to ensure the legitimacy of building permits issued under the beneficial provisions of the 2012 New Building Code (NBC), or construction of plots in areas outside urban planning prior to the Council of State’s consideration of the public road recognition issue, which affects the buildability of plots. The Ministry of Environment and Energy is working to calm fears around this uncertainty.

The Ministry, alongside the government, seeks to establish clear boundaries between the “before” and “after” of judicial decisions, responding to persistent concerns about the insecurity created by the annulment rulings of the CoS, which have already frozen thousands of real estate transactions due to fears of a damaging ruling by the highest court.

Statements from Industry Professionals
A notable comment from Mr. Fotis Yoftsiou, Vice President and CEO of TEN Brinke Hellas, one of the largest multinational real estate development companies, reflects the situation: “We are waiting for the CoS decisions, as there is a problem with investments. Foreign investors have obtained building permits and created business plans based on the New Building Code (NBC), which was in effect for 12 years. Suddenly, due to some mayors who believe the law may not be applied, development is halted. This undermines the country’s credibility. There is no legal security.” TEN Brinke is developing a portfolio of hundreds of properties in Greece and is investing a total of 250 million euros, with 150 million allocated to residential projects.

Closing Remarks
The company’s head emphasized that explaining to their headquarters in the Netherlands why they must wait for a court decision on whether or not to proceed with a project is challenging: “There are obstacles that management must resolve because we have not yet grasped the scale of the problem. When investors put money in and apply the law, and then you stop them or devalue what was approved for construction, they have the right to compensation.”

In municipalities of the southern suburbs, where most objections arise, the company is developing approximately 80 apartments, with plans to increase this number to 490 over the next three years, excluding the development at the Ellinikon (The Ellinikon Project). The Dutch company has encountered obstacles in these areas, including the suspension of a building permit, which they managed to lift using legal tools.

Legal Certainty
“We want to allow those who wish to invest in our country to face only the risk of business and development, not the risk of whether they can build or whether decisions and even projects may be annulled for various reasons. This is a major challenge that we must all overcome together,” stated Deputy Minister of Spatial Planning and Urban Environment Nikos Tagaras during a recent conference hosted by the Technical Chamber of Greece.

From the same forum, General Secretary of Spatial Planning Efthymios Bakoyannis declared that the government plans to legislate if necessary to protect legally approved permits. “I want it to be clear to everyone that Greece is a safe country for investments,” he said, clarifying that any action would also apply to off-plan construction areas. “There are issues with the CoS decisions, but there are hundreds, if not thousands, of permits issued under the off-plan construction regime. These administrative actions will be protected by the government in every way.”

The New Building Code and Ongoing Legal Struggles
The CoS recently ruled on appeals by mayors and organizations concerning the NBC, and pressure is mounting for a decision as early as next month or by early 2025. The goal is to provide clarity to the market about how construction will be allowed in areas where building activities have been suspended due to uncertainty created by the CoS appeals.

Government Plans
At the same time, the Ministry of Environment and Energy is in close coordination with the Prime Minister’s Office to design the framework for intermediate reforms related to off-plan construction before the completion of urban planning reforms. According to information, it is almost certain that the decision to abolish the easement for access to neighboring plots that face a public road, which was used to make a “blind” plot buildable, will be implemented.

This measure was previewed by the Prime Minister, and despite objections from the technical and scientific community, which argue that it invalidates a significant portion of currently buildable plots, it is seen as a way to curb off-plan construction, which will be included (under uncertain terms and conditions) in the new legislative framework. There are also discussions about creating different building rules for mainland Greece and the islands. Suggestions include allowing construction only on plots that face roads that existed before 1977 on the mainland, while a stricter framework with additional criteria is being considered for the islands.

Plans for New Regulations
In the latest draft, which was leaked and withdrawn due to pre-election reactions, it was proposed that, for well-formed off-plan plots (over 4 acres), the plot must face a recognized road at least 25 meters wide in order to build a residence, under two conditions. First, there must be at least two legally existing buildings in the area, and second, the distance of the new building from them must not exceed two kilometers.

An exception was proposed for plots facing a road of 3.5 meters, provided that they were created (i.e., subdivided) before 1985 and there is already a building in the area. It is expected that exceptions to the 25-meter rule will be included in the transitional provisions for off-plan construction.

Barriers and Challenges
While the Prime Minister recently mentioned imminent announcements regarding the final framework for off-plan construction, responsible sources believe this is unlikely to happen before the start of the new year.

The Ministry of Environment and Energy acknowledges the significant issues raised by the CoS decisions, which will be addressed, emphasizing that Greece has legal certainty and will protect all legally issued building permits. The goal, as stated by Mr. Tagaras, is a transitional and balanced solution, not the sudden cessation of off-plan construction, until the new urban planning framework, which is currently underway for 80% of the country, is completed in the next two to three years.

The Ministry is committed to finding a solution to the problems created by the CoS decisions regarding off-plan construction and the NBC, particularly with regards to building heights. “We must understand that when conditions change, everyone must adjust to the new requirements,” Mr. Tagaras concluded, emphasizing that “we must find a way to continue development without interruption, both legally and constitutionally.”

Studies for Roads
According to the Deputy Minister, studies for the delineation of roads, which are a key prerequisite for making plots buildable, are underway in 149 municipal units, excluding Evia and Crete, and cover all island municipalities. For mainland Greece, including Evia and Crete, tendering processes worth a total of 196 million euros are beginning.

Today, there are very few officially designated roads throughout the country that make up the primary road network, provincial roads, and some other pre-1923 roads. All others are not considered “public” roads in urban planning law and are regarded as unregulated. Through the Ministry’s road designation program, the aim is to provide legal access to plots that may have the required size and usability but lack road frontage, thus preventing them from being buildable.

Along with the road designations, the Ministry is also addressing other important interventions, such as the definition of settlements in 51 municipal units across the country (following a CoS decision that annulled settlement boundaries in Pelion), and the designation of 83 municipal units as reception zones for density coefficients, with the assistance of the Technical Chamber of Greece.

In 80% of the country (630 out of 1,035 municipal units), local and specialized urban planning projects are in progress, which will include land use regulations, building codes, traffic studies, and climate-related plans, with a total cost exceeding 700 million euros. Mr. Tagaras estimates that the Ministry expects an overwhelming workload, as over 300 Presidential Decrees will need to be issued, each requiring review by the CoS, to implement the urban planning reforms.