Winners and Losers: Who the Council of State's Verdict on the New Building Code Affects

09:47 25/1/2025 - Πηγή: Dikaiologitika

The Council of State, Greece's highest administrative court, has ruled that a key incentive system under the New Building Code (NOK) is unconstitutional.

The decision directly affects construction permits issued under the system, which aimed to promote building activity through measures such as increasing

allowable building heights and density. The court found that these incentives, applied uniformly across all areas, violated constitutional principles requiring tailored urban planning for specific regions.

Permits affected by the ruling are limited to those where construction had not started by December 11, 2024. The court clarified that permits where work had demonstrably begun by this date—specifically excavation works—are exempt and can proceed. For work to be considered as having started, documentation such as notifications to administrative authorities or employer filings in government systems is required. Merely obtaining a permit or issuing electronic notifications is not sufficient.

However, the court made an important distinction: permits under legal dispute as of December 11, 2024, are still subject to cancellation, even if construction had started. This ruling reflects the principle that legal challenges take precedence over retroactive protections.

The NOK was introduced in 2012 to revitalize Greece’s construction sector, which was hit hard by the financial crisis. However, its legality was challenged, and after years of delays, the issue was brought to the court following a resurgence in building activity.

Many affected parties are likely to challenge the revocation of their permits in court. They may argue that their projects relied in good faith on a legal framework that was subsequently invalidated, and they could seek remedies based on principles of fairness and legitimate expectations.

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