Athens, March 20, 2025 – The Greek government has enacted a presidential decree clamping down on the expansion of settlements with fewer than 2,000 residents, signaling a major shift in the country’s approach to urban planning.
Announced on Thursday, the measure restricts village boundaries to areas developed prior to 1983, allowing growth only when a scientifically substantiated population increase—unrelated to tourism—warrants it. The move, spearheaded by the Ministry of Environment, aims to rein in decades of unchecked sprawl while aligning with a broader nationwide planning overhaul.
The decree marks a reversal from earlier proposals that sought to retroactively legitimize informal expansions. Greece’s highest administrative court, the Council of State, struck down those plans, declaring many past zoning practices unconstitutional. “The recognition of such zones leads indirectly to settlement expansion, which is not permitted,” the court stated, insisting that any boundary changes must stem from a structured urban planning framework backed by rigorous justification.
Under the new rules, settlements are categorized into three zones: historical cores established before 1923, cohesive expansions built between 1923 and 1983, and scattered developments from the same period. Properties constructed under previous urban regulations but now falling outside redefined village limits will not face demolition. However, they will be governed by stricter non-urban zoning laws, requiring significantly larger plot sizes for any future construction—a change that has sparked unease among landowners and developers.
The Ministry of Environment crafted the decree amid growing pressure to balance development with sustainability. Special provisions remain in place for distinct settlement types, such as coastal, mountainous, traditional, and tourism-reliant villages. For instance, seaside areas now require a minimum plot size of 2,000 square meters and a frontage of 15 meters, while mountainous zones allow a slightly reduced 10-meter frontage. The ruling also introduces uncertainty around building on steep terrains, following a 2024 court decision that invalidated previous height measurement standards. Traditional settlements will retain existing protections, though zoning adjustments could be permitted with detailed reasoning.
The decree’s rollout has not been without controversy. Urban planners, many of whom had drafted settlement boundaries based on now-obsolete ministry guidelines, warn of disruptions to ongoing projects. Landowners, particularly those who invested in subdivided plots anticipating development, fear financial losses as the new restrictions dash their plans. In tourism-heavy regions like Mount Pelion, critics argue the measures could stifle economic growth and exacerbate housing shortages.
Ministry officials defend the reforms as a necessary step toward sustainable development. “This decree prioritizes planning over unchecked expansion,” a spokesperson said, emphasizing the need to preserve Greece’s rural character amid rising pressures from tourism and population shifts. However, detractors contend that the stringent limits could hinder rural revitalization at a time when small towns are already grappling with depopulation.
As the decree takes effect, local authorities face the daunting task of adapting to the tightened regulations. With implementation now underway, its long-term impact on Greece’s small towns—and the delicate balance between growth and preservation—remains to be seen. For now, the government’s firm stance has set the stage for a contentious debate over the future of rural development in the country.