A legislative reform offering urban-planning security to settlements under 2,000 inhabitants was introduced today during a meeting between Prime Minister Kyriakos Mitsotakis, Environment & Energy Minister Stavros Papastavrou, and Deputy Minister Nikos Tagaras.

The new regulation, to be submitted to Parliament today, effectively maintains existing development boundaries in over 9 out of 10 small settlements, safeguarding both property rights and the demographic future of rural areas.

The reform introduces two new planning instruments:

• Settlement Development Zone, for communities up to 700 residents (the vast majority): allows construction within current boundaries. This secures development in all villages nationwide—around 93% of settlements under 2,000 inhabitants.
• Land Use Control Area, for settlements with 701–2,000 residents: offers more favorable building conditions compared to out-of-plan regulations.

Recall that in about 150 settlements in Rethymno and Pelion, the Council of State had annulled older governor-established limits, causing construction stagnation and raising questions about boundaries in unregulated settlements. A Presidential Decree in April 2025 restored legal clarity—but left peripheral areas unresolved. This new legislation fully addresses that gap.

Prime Minister Mitsotakis emphasised:

“I congratulate the Ministry for these urban‑planning initiatives. For the first time, the country will have specialised spatial frameworks nationwide… For settlements under 700 residents—which constitute the vast majority—existing limits remain in place. For those between 700 and 2,000 residents, a flexible system will allow development even in peripheral zones, supporting rural repopulation and demographic policy.”

Minister Papastavrou added:

“Today we resolve regulatory ambiguity and strengthen small settlements with respect for local identity and heritage… using two tools: the Settlement Development Zone for villages up to 700 residents, and the Land Use Control Area for those up to 2,000. This supports demographic and regional policy, and secures safe, sustainable spatial development across Greece.”