The Council of State has overturned provisions of the New Building Regulation, invalidating incentives that allowed developers to exceed height and density limits for environmentally friendly structures. The decision directly impacts approximately 14,000 building permits issued under the now-invalidated bonuses, most of which have yet to break ground.
The ruling, grounded in constitutional concerns, clarifies the fate of various permits and projects.
Permits that have already been used for completed or ongoing constructions will not face revocation, as such cancellations could infringe on vested rights. However, the court declared that permits granted but not yet acted upon can be annulled due to the unconstitutional nature of the incentives. Permits currently being contested in court, even if construction has begun, may also be overturned, as protecting judicial review is deemed paramount.
Central to the court’s deliberation was the definition of when construction work begins. Excavation for a building’s foundation qualifies as the commencement of work, the court said.
Merely obtaining a building permit without actual work being initiated is insufficient to establish a project’s validity.
This ruling also invalidates a recent amendment by Environment Minister Theodoros Skylakakis designed to shield certain permits from cancellation.
The amendment, effective only until the court’s decision was published, now holds no authority, forcing municipal and national bodies to align future policy with the decision. Officials suggest that additional regulatory steps will be introduced to prevent a wave of lawsuits from affected developers.
The court’s decision has reignited debate over the role of urban incentives and environmental priorities in urban planning. While the majority of justices stressed the unconstitutional implementation of height and density bonuses, a minority dissented, arguing that the law’s framework fundamentally compromised urban conditions and quality of life.
The implications extend beyond the current case, with separate lawsuits pending regarding other controversial provisions of the New Building Regulation, such as rules on subterranean structures and expanded basements. The court also addressed disputes over excluding architectural features, including mezzanines and swimming pools, from density calculations, siding with stricter constitutional interpretation in most cases.
As Greece’s construction sector grapples with the ruling, officials face pressure to stabilize development plans while adhering to constitutional mandates.