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). It should be recalled that under this new regulation by the Ministry of Environment and Energy, existing limits are maintained in more than 9 out of 10 small communities, protecting both property rights of owners and the demographic prospects of the regions.
The regulation introduces two new urban planning tools: The first, Zone of Settlement Development (Ζώνη Ανάπτυξης Οικισμού), applies to communities with a population up to 700 residents — which constitute the vast majority — and ensures the possibility of construction up to current limits. In this way, all villages across the country are secured urbanistically, covering approximately 93% of settlements below 2,000 inhabitants.
The second tool, Area of Controlled Use (Περιοχή Ελέγχου Χρήσεων), will cover settlements with populations from 701 to 2,000 residents and provides more favorable provisions compared to out-of-plan construction.
It is worth recalling that in about 150 settlements in Rethymno and Pelion, the Council of State canceled the limits previously established through decisions by Prefects.
### Frequently Asked Questions on the Legislative Regulation Regarding Settlements:
**1. What problem has arisen with settlements?**
The Council of State annulled — through several rulings in 2017, 2019, and 2022 — settlement boundaries in Lasithi, Pelion, and Paros, which had been defined through decisions by Prefects. Specifically, the Council found Prefects to be incompetent and the criteria they followed insufficient.
These decisions have led certain settlements into construction stagnation, as no building permits have been issued over many years. At the same time, it potentially placed into question the demarcation of another 12,000 settlements with less than 2,000 residents nationwide, which are not legally established via Presidential Decree but rather through Prefect decisions.
**2. What did the proposed Presidential Decree (ΠΔ) provide?**
The decree set criteria and methodology for delimiting pre-1983 settlements with fewer than 2,000 residents. These must be considered by planners when delineating settlements, whether during the drafting of Local and Special Urban Plans or through independent boundary studies nationwide.
For the first time, fragmented legislation was unified, updated, and made consistent — one set applying to settlements before 1923 and another for those under 2,000 residents. This restored property value and ensured legal certainty in settlements across the country. Moreover, signing the decree was essential to advance studies without delays and guarantee implementation of the emblematic ‘Konstantinos Doxiadis’ program.
**3. Does the decree apply to all settlements in the country?**
No, the decree excludes:
– Settlements with over 2,000 residents
– New settlements created after 1983
– Coastal settlements included in Residential Control Zones (ZOE) in specific regional units such as Attica, Evia, Corinthia, Thessaloniki, Pieria, and Chalkidiki.
**4. What issue arose during processing of the decree at the Council of State?**
The issue emerged following the rejection by the Council of State of Zone C (outer settlement boundaries that had been defined), affecting only unbuilt properties in these zones of settlements with fewer than 2,000 residents, specifically cases where prefectural boundary decisions failed to meet required scientific criteria.
**5. What solution does the Ministry of Environment and Energy propose?**
The Ministry aims to resolve this backlog by introducing two new urban planning instruments: Zone of Settlement Development and Area of Special Uses, focusing on addressing demographic challenges faced by these settlements, protecting legitimate property rights, and ensuring state-citizen stability.
With these two tools, we resolve regulatory ambiguity, strengthen the perspective of small settlements while respecting each place’s identity and historical heritage, toward a territorially secure, developmentally strong Greece prioritizing decentralization and demographic support.
**6. What do the two new urban planning tools provide?**
– **Zone of Settlement Development (Ζ.Α.Ο.)**: A new urban planning tool supporting and strengthening the regional network of settlements in addressing demographic decline and enhancing decentralization. Located within the settlement, it resembles Zone B1. It applies to settlements up to 700 residents. Through this instrument, during the delineation of settlements within the framework of the ‘Konstantinos Doxiadis’ program, boundaries can expand beyond Zone B1 up to the current settlement boundary upon special documentation. In ZAO, plots with a minimum area of 500–2,000 square meters and a frontage of at least 10 meters on a public road are considered buildable. The exact figures are specified in the decree. For other dimensions, conditions, and building restrictions, rules applicable to Zone B1 apply. Land uses permitted are those allowed in Zones B and B1, upon documentation.
– **Area of Special Uses (Π.Ε.Χ.)**: An urban planning tool for settlements with populations between 701 and 2,000 residents. During their delineation under the Konstantinos Doxiadis program, an area beyond Zone B1 up to the current boundary can be designated as PECH. In PECH, buildable plots require a minimum area of 2,000–4,000 square meters and a frontage of at least 15 meters on a public road. Permitted land uses follow those of Zones B and B1, with documentation tailored to the area’s characteristics to avoid potential conflicts and uncontrolled consumption of natural resources.
**7. Why does the Ministry introduce this regulation now?**
The immediate signing of the decree was necessary to provide direction to planners of Local and Special Urban Plans, thereby ensuring the implementation of the emblematic ‘Konstantinos Doxiadis’ program — the largest spatial organization reform since the foundation of the Greek state.
During the preparation of Local Urban Plans (T.P.S) and Special Urban Plans (E.P.S), planners start from the settlement core and gradually extend their study outward. Therefore, any delay in approving the decree would endanger the entire ‘Konstantinos Doxiadis’ program, a milestone of the Recovery and Resilience Fund. Simultaneously, it aligns with decentralization goals and addresses demographic challenges.
**8. Is this legislative intervention isolated or part of a broader urban planning reform?**
Currently, Greece is undergoing a substantial urban planning reform that hasn’t occurred in over 100 years. The Ministry of Environment and Energy is codifying urban planning legislation and developing the emblematic urban design program ‘Konstantinos Doxiadis’ for the entire country. For the first time, clear rules are being introduced, with a budget reaching one billion euros from the Recovery and Resilience Fund. It includes:
– 227 Local Urban Plans for 731 Municipal Units
– 18 Special Urban Plans for 99 Municipal Units
– 12 Independent Boundary Studies for Settlements
– Independent Study for Reception Zones of Building Coefficient (ZYS)
– Independent Study for Characterization of Municipal Roads