09 Mar 2026
Construction projects freeze as Court weighs planning bonuses
With the controversial Presidential Decree as a backdrop, the building project.
- RE+D Magazine
A construction site in the southern suburbs of Athens has temporarily suspended its operations, awaiting a critical decision on whether construction on the building will proceed or be halted until the judiciary delivers its ruling.
At the same time, in a municipal council chamber, the opposite question is being raised: can the retention of additional floors that have been deemed unconstitutional be permitted?
The common element in both cases is the intense dispute that has emerged over the planning “bonuses” introduced by the New Building Regulation (NOK)—a conflict that in recent years has evolved into a direct confrontation between local authorities, the Ministry of Environment and Energy, and the construction sector. The final decision now rests with the Council of State.
Particular significance is attached to the timetable set by the court itself. The Plenary of the Council of State has set a deadline until April for the submission of memoranda by the parties involved. Based on the usual procedure, a final ruling is expected roughly a month later, most likely in June.
During the hearing, the court examined a broad framework of legislative interventions aimed at addressing the consequences of earlier rulings by the Council of State concerning the urban planning incentives of the New Building Regulation. At the center of the discussion were the amendments introduced by Article 132 of Law 5106/2024, Article 41 of Law 5167/2024, which includes transitional provisions for the regulation, and Articles 66 to 71 of Law 5197/2025, which introduce new urban planning measures.
However, the main focal point of the dispute is Presidential Decree 94/2025, which was issued following Decisions 146 to 149 of the Plenary of the Council of State. The decree attempts to establish a new framework for the implementation of building incentives by introducing the mechanism of the so-called “environmental equivalent”, designed to offset additional building rights with environmental compensations.
The final ruling of the judiciary is expected to determine not only the fate of specific construction projects but also the broader framework for the development of the real estate market in the coming years.