Settlements: Loss of over 100 billion euros in their commercial value for owners

The recent Presidential Decree (P.D. 194/2025) on the re-demarcation of settlements with less than 2,000 inhabitants has caused justified reactions across the country. Especially for areas like Crete, where the majority of settlements fall into this category, the effects will be catastrophic.

What changes?

All boundary extensions made by prefects after 1983 are canceled. ➡️ Properties that were considered perfect and buildable for decades lose the right to build. ➡️ The commercial value of properties drops dramatically, with an estimated total loss of over 100 billion euros.

How are owners affected?

• Increase in quality to 4 acres.

• Reduction of building coefficient to 0.2.

• Restrictions on height, volume and uses.

• Complex procedures for issuing building permits.

• Maintaining high taxes (ENFIA) on properties that are essentially depreciating.

The legal and social paradox

The Presidential Decree ignores the real needs of the countryside, treating residential zones as "off-plan" areas, despite the fact that these are zones that were developed legally, with building permits and state tolerance.

At the same time, the Constitution (article 17) protects property — which here is affected without transitional arrangements, compensation, or legal protection for citizens who acted in good faith.

What does the TEE/TAK ask for?

✔️ Immediate withdrawal of the Presidential Decree. ✔️ Institutionalization of a new demarcation process with an active role of the Local Government. ✔️ Simplification and financing of urban planning tools (TPS, EPS). ✔️ Legal consolidation of the existing situation without retroactivity.

Conclusion:

Greece needs stable rules, trust in the State, and policies that respect the sustainability of the countryside and the rights of citizens. Not horizontal cancellations, not punitive regulations.

source: ecopress.gr