Even legislative interventions are being considered to guarantee the legitimacy of building permits issued under the beneficial provisions of the New Construction Code (CNB) of 2012, or construction plots in non-urban planning zones before the examination by the Council of State of the question of recognition of public roads, which affects the constructability of the plots. The Ministry of Environment and Energy is working to allay fears related to this uncertainty.

The ministry, alongside the government, seeks to establish clear boundaries between the “before” and “after” of judicial decisions, responding to ongoing concerns about the insecurity created by CoS annulment judgments, which have already frozen thousands of real estate transactions. due to fears of a damaging decision from 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 decisions of the CoS, because there is a problem with investments. Foreign investors obtained building permits and created business plans based on the New Building Code (NBC), which has been in force for 12 years. Suddenly, because of certain mayors who believe that the law might not be applied, development is stopped. This undermines the credibility of the country. There is no legal certainty. TEN Brinke is developing a portfolio of hundreds of properties in Greece and investing a total of 250 million euros, of which 150 million allocated to residential projects.

Closing remarks
The head of the company pointed out that it was difficult to explain to the head office in the Netherlands why it was necessary to wait for a court decision to pursue or not a project: “There are obstacles that the management must overcome because that we have not yet understood the extent of the problem. issue. When investors invest money and enforce the law, and you stop them or devalue what has been approved for construction, they are entitled to compensation.”

In the southern suburban communities, where objections are most numerous, the company is developing around 80 apartments and plans to increase this number to 490 over the next three years, not including the development in Ellinikon (Ellinikon project). The Dutch company encountered obstacles in these areas, including the suspension of a building permit, which it managed to lift using legal tools.

Legal security
“We want to enable those who want to invest in our country to face only the risk of business and development, and not the risk of whether they can build or whether decisions and even projects can be canceled for various reasons. This is a major challenge that we must all face together,” said Nikos Tagaras, Deputy Minister of Spatial Planning and Urban Environment, at a recent conference organized by the Technical Chamber of Greece.

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

The new building code and ongoing legal struggles
The CoS recently weighed in on calls from mayors and organizations regarding the NBC, and pressure is mounting for a decision to be made as early as next month or early 2025. The aim is to provide more clarity to the market on how construction will be permitted in areas where construction is possible. activities were suspended due to the uncertainty created by the CoS calls.

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

This measure was anticipated by the Prime Minister and, despite the objections of the technical and scientific community, which affirms that it invalidates a significant part of the currently buildable land, it is considered as a means of slowing down off-plan construction, which will be included (under uncertain conditions) in the new legislative framework. Discussions are also underway on creating different building rules for mainland Greece and the islands. Suggestions include allowing construction only on plots fronting roads that existed before 1977 on the mainland, while a stricter framework with additional criteria is being considered for the islands.

Projects for new regulations
In the latest draft, which was leaked and withdrawn due to pre-election backlash, it was proposed that for well-formed off-plan plots (over 4 acres), the plot would have to face a recognized road of at least 25 meters wide in order to build a residence, under two conditions. Firstly, there must be at least two legally existing buildings in the area, and secondly, the distance between the new building and these must not exceed two kilometers.

An exception was proposed for plots fronting a 3.5 meter road, provided 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.

Obstacles and challenges
While the Prime Minister recently spoke of imminent announcements regarding the final framework for off-plan construction, knowledgeable sources say this is unlikely to happen before the start of the new year.

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

The ministry is committed to finding a solution to the problems created by the decisions of the CoS regarding on-plan construction and the NBC, particularly with regard to the height of buildings. “We must understand that when conditions change, everyone must adapt to the new requirements,” concluded Mr. Tagaras, emphasizing that “we must find a way to continue development without interruption, both legally and constitutionally.”

Studies for roads
According to the Deputy Minister, road demarcation studies, an essential condition for making land buildable, are underway in 149 municipal units, excluding Euboea and Crete, and cover all island municipalities. For mainland Greece, including Euboea and Crete, tenders worth a total of 196 million euros have started.

Today, there are very few officially designated roads throughout the country which constitute the main road network, provincial roads and some other roads dating from before 1923. All others are not considered “public” roads in the sense of planning law and are considered unregulated. Through the department’s road designation program, the goal is to provide legal access to parcels that may be of the required size and usability but lack road frontage, thus preventing them from being buildable.

Along with the designation of roads, the ministry is also addressing other important interventions, such as defining settlements in 51 municipal units across the country (following a CoS decision that canceled settlement boundaries in Pelion ) and the designation of 83 municipal units as reception centers. zones for density coefficients, with the help 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 underway, which will include land use regulations, building codes, traffic studies and related plans to the climate, for a total cost of more than 700 million euros. Mr. Tagaras believes that the ministry expects an overwhelming workload, as more than 300 presidential decrees will need to be issued, each requiring review by the CoS, to implement the urban planning reforms.