Urban Planning Regulation: Key Questions and Answers About Smaller Settlements

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Clarifications regarding the new legislative regulation that provides urban planning security for settlements with fewer than 2,000 residents were published today (1.7.2025). The regulation, introduced by the Ministry of Environment and Energy, essentially maintains existing boundaries in more than 9 out of 10 small communities, protecting both property rights and regional demographic perspectives.

The regulation introduces two new urban planning tools:

1. **Zone of Settlement Development (Ζώνη Ανάπτυξης Οικισμού)**: This applies to communities with a population of up to 700 residents, which make up the vast majority, and ensures the possibility of construction up to current limits. In this way, all villages across the country are protected urbanistically, covering approximately 93% of settlements with fewer than 2,000 inhabitants.

2. **Area of Special Uses Control (Περιοχή Ελέγχου Χρήσεων)**: This will cover settlements with populations ranging from 701 to 2,000 residents and includes more favorable provisions compared to out-of-plan construction.

It is recalled that in about 150 settlements in Rethymno and Pelion, the Council of State canceled the previously established boundaries set by former Prefects’ decisions.

### Frequently Asked Questions About the Legislative Regulation

**1. What problem has arisen with these settlements?**
In a series of decisions from 2017, 2019, and 2022, the Council of State annulled settlement boundaries in Lasithi, Pelion, and Paros that had been determined by Prefects’ decisions. Specifically, the Council deemed the Prefects unauthorized and the criteria used insufficient. These decisions led to construction stagnation in those areas and cast doubt on the demarcation of approximately 12,000 other settlements nationwide that are not institutionalized by Presidential Decree but by Prefects’ decisions.

**2. What did the proposed Presidential Decree (ΠΔ) provide?**
The decree defined criteria and methodology for determining the boundaries of settlements established before 1983 with fewer than 2,000 residents. It aimed to unify fragmented legislation, updating and systematizing legal frameworks for settlements pre-1923 and post-1923 alike. This restored property values and ensured legal certainty for local communities.

**3. Does the decree apply to all settlements in the country?**
No. It excludes settlements with over 2,000 residents, new settlements created after 1983, and coastal settlements included in Urban Planning Zones (ZOE), such as in Attica, Evia, Corinthia, Thessaloniki, Pieria, and Halkidiki.

**4. What issue arose during the review of the decree at the Council of State?**
The issue concerned only unbuilt properties located in Zone C—those beyond the official settlement boundary—and applied specifically to cases where prefectural decisions lacked required scientific criteria.

**5. What solution does the Ministry propose?**
The Ministry proposes introducing two new tools: the Zone of Settlement Development (Ζ.Α.Ο.) and the Area of Special Uses Control (Π.Ε.Χ.). These aim to resolve regulatory uncertainty while respecting property rights and supporting demographic sustainability.

**6. What do the two new tools entail?**
– **Zone of Settlement Development (Ζ.Α.Ο.):** For settlements with up to 700 residents. It allows expansion of boundaries up to current limits with minimum plot sizes between 500–2000 sq.m. and frontage of at least 10 meters on a public road.
– **Area of Special Uses Control (Π.Ε.Χ.):** For settlements with 701–2,000 residents. Allows for regulated development beyond Zone B1, with minimum plot sizes between 2000–4000 sq.m. and frontage of at least 15 meters.

**7. Why is this regulation being introduced now?**
The decree was necessary to guide studies under the emblematic ‘Konstantinos Doxiadis’ program—the largest spatial reform since the foundation of the Greek state—and to ensure timely implementation of Recovery and Resilience Fund projects.

**8. Is this a standalone measure or part of broader reform?**
This is part of a comprehensive urban planning reform, including the codification of legislation and the creation of 227 Local Urban Plans, 18 Special Urban Plans, and additional autonomous studies—all funded by nearly one billion euros from the Recovery and Resilience Facility.