Legislative update concerning small settlements
Legislative update concerning small settlements

Legislative update concerning small settlements

The legislative regulation, introduces two new urban planning tools: the Settlement Development Zone and the Land Use Control Area.
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RE+D magazine
01.07.2025

A legislative regulation concerning the peripheral areas of small settlements—those with fewer than 2,000 residents—that were excluded from the boundaries of “Zone C” was presented today, Tuesday, July 1st. The announcement took place during a meeting between Prime Minister Kyriakos Mitsotakis, Minister of Environment and Energy Stavros Papastavrou, and Deputy Minister Nikos Tagaras.

The legislative regulation, which is expected to be submitted to Parliament imminently—possibly within the day—introduces two new urban planning tools: the Settlement Development Zone and the Land Use Control Area. These tools aim to reintegrate all lands that lost their building rights, thereby securing existing boundaries for over 90% of the settlements affected. It is recalled that in approximately 150 settlements in Rethymno and Pelion, the Council of State annulled the urban boundaries established by Prefectural decisions due to lack of proper authorization.

Specifically, the regulation establishes:

  1. Settlement Development Zone – applicable to settlements with up to 700 inhabitants, representing the vast majority. This tool guarantees the possibility of construction within the existing boundaries, covering about 93% of settlements with fewer than 2,000 residents.

  2. Land Use Control Area – intended for settlements with populations between 701 and 2,000 residents, providing more favorable regulations compared to non-zoned building areas.

It is also noted that the new framework defines internal zoning divisions, which include Zone A (the historic core before 1923), Zone B (continuous areas from 1923 to 1983), and Zone B1 (dispersed or sparsely built areas from the same period). The delineation process relies on technical and census data, historical aerial photographs (up to 1983), and official cartographic resources.

This Presidential Decree addresses the institutional gap created when the Council of State annulled the urban boundaries in about 150 settlements in Rethymno and Pelion, established by Prefectural decisions without proper authorization. This development led to a complete halt in construction activities and caused uncertainty for other settlements similarly lacking formal zoning recognition.