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Home council of state

New institutional framework: Urban planning solution for settlements of less than 2,000 inhabitants

info@neagreece.gr by [email protected]
May 26, 2025
in council of state, Economy, Greece, Politics, settlements
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Across the nation, numerous settlements are embarking on a journey of institutional restoration, guided by demographic criteria and rural reinforcement initiatives. This effort aims to establish a transitional framework that will determine the future of land plots defined by boundaries set by prefects in villages, ultimately aiming to resolve years of uncertainty in urban planning.

The government is drafting a new regulation in response to social and parliamentary demands regarding the delineation of settlements with less than 2,000 residents, anticipated to be ready by June. This regulation seeks to tackle a significant outstanding issue by offering clear guidelines for urban planners to implement spatial planning nationwide.

After a lengthy period of stagnation and legal disputes, the government is working to create definitive rules for defining the boundaries of small and pre-1923 settlements. This regulation will directly impact thousands of property owners, with only one unresolved matter remaining—Zone C (the outermost settlement zone)—which is currently under government review for potential reintegration.

This zone encompasses areas that expanded without proper authorization through actions taken by prefects since the mid-1980s and have been deemed illegal by the Council of State due to a lack of scientific justification in their delineation. Consequently, these areas were ruled unlawful by the highest court, making even vacant plots within them non-buildable.

The government’s new framework for these settlements is designed not merely as a planning reform but as an important mechanism for preserving small villages, encouraging rural retention, and protecting property ownership.

The Core Dilemma

Deputy Minister of Environment Nikos Tagaras, in an interview with Proto Thema, elaborated on the broader objectives of the settlement demarcation regulation. He highlighted that the initiative transcends conventional urban and spatial planning norms, emphasizing the necessity of supporting rural regions and addressing demographic challenges.

“Settlements cannot be evaluated solely on population data. If we based it merely on numbers, any time a village shrinks, we’d have to reduce its boundaries—essentially dismantling rural areas and compelling everyone to move back to Athens,” he remarked.

A property, even if it remains undeveloped, holds intrinsic value—be it for selling, transferring, or utilizing. The devaluation of such properties creates significant social, economic, and developmental repercussions.

Tagaras described the fundamental challenge as reconciling Article 24 of the Constitution, which prioritizes environmental protection, with Article 17, which safeguards property rights. He noted that the Prime Minister has ordered that all social and planning factors be assessed—not only to preserve existing settlements but also to promote decentralization, encourage youth to return to their villages, and attract newcomers.

To facilitate this, both existing and new urban planning tools will be utilized—such as provisions for stagnant, small, or abandoned settlements—and will be submitted to the Council of State for constitutional validation.

The Government’s Commitment

The Prime Minister has recognized public and local unease regarding the effects of urban restructuring and underscored that this intervention will protect property rights, even suggesting the potential amendment of Article 24 of the Constitution concerning environmental protection. The current Constitution mandates urban planning prior to expanding settlement boundaries.

“I understand the concerns,” the Prime Minister asserted, “but the Constitution also guarantees a citizen’s rightful expectation when they purchased a plot with the belief they could build on it. Such rights should not be retroactively revoked.”

He outlined the regulatory approach: “I will treat a settlement of 2,000 residents differently from a village with 300,” questioning the feasibility of applying urban planning in such small communities.

The government faces the complexity of varied settlement types, from small villages with only 50 or 100 residents to others that experience seasonal shifts in population. A reliable classification could be derived, as per the Ministry of Environment and Energy (ΥΠΕΝ), from demographic data provided by ELSTAT and utility consumption (like electricity or water) to accurately reflect actual population sizes through usage patterns.

The Problem

The government insists that the forthcoming regulation will not take away citizens’ property but rather restore legality. It notes that within two years, new settlement boundaries will be legally established through Presidential Decrees, after engaging in public consultations in Local and Special Urban Plans.

As the Deputy Minister of Environment and Energy pointed out, “The new Presidential Decree does not redefine boundaries—it establishes the methodology and process for determining them through scientific justification, public input, and, crucially, constitutional validation by the Council of State.”

This planning initiative involves 257 urban studies currently in progress through the “Konstantinos Doxiadis” program, supported by €1 billion from the Recovery Fund.

Nonetheless, the proposed Decree has elicited backlash from local communities, particularly concerning properties in Zone C, included in the original ΥΠΕΝ draft but dismissed by the Council of State as unlawful. Conversely, other zones (A, B, and B1) remain eligible for construction, with minimum plot sizes ranging from 150 sq.m. to 2,000 sq.m.

These zones align with the provisions of the 1981 Decree regarding settlements predating 1923 and the 1985 Decree concerning settlements with fewer than 2,000 residents, both of which have been fully integrated into the April Presidential Decree on settlements.

Zone C – The Key Obstacle

Zone C continues to pose a significant barrier, as the Council of State has ruled that undeveloped plots within this area are not constructible—unless a new regulation is introduced that includes strong scientific and institutional justification.

This matter has been addressed in rulings from 2017 and 2021, resulting in urban planning impasses in 79 settlements in Rethymno over the past eight years and in 67 settlements in Pelion over the last six years due to judicial decisions.

It is essential to note that the Presidential Decree does not impact:

– Settlements with over 2,000 residents,

– New settlements established post-1983, or

– Coastal settlements within Zoning Control Areas (ZOE) in specific regions such as Attica, Evia, Corinthia, Thessaloniki, Pieria, and Halkidiki.

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