Greece’s Supreme Administrative Court, the Council of State (StE), is expected to issue a critical ruling on Friday, January 24, regarding controversial "construction bonuses" included in the country’s New Building Regulation (NOK). These incentives, introduced in recent years to encourage energy-efficient buildings and public spaces, particularly in urban areas, have sparked heated debates over their fairness and legality.
At the heart of the issue are building permits granted based on these bonuses. The Council of State’s Plenary Session deliberated the matter in October 2024, and the forthcoming decision could have far-reaching implications. In a December statement, the court’s president, Michalis Pikramenos, deemed the NOK incentives unconstitutional, raising the prospect of invalidating permits issued under these provisions. However, the exact scope of the decision remains unclear.
A key point of contention lies in the court’s December clarification that the ruling would not impact projects already under construction at the time of the announcement. This has led to confusion about what qualifies as "commencement of works." Does it apply only to completed projects, or are partially started developments included? These questions have caused uncertainty among municipalities, property developers, and homeowners.
For projects still in planning or for those that had not broken ground by December, the situation remains uncertain. Many fear their permits may be voided, while others await clear guidelines from tomorrow’s decision.
The ruling is expected to address the definition of "commencement of works" and specify which permits may be affected. If the court does not provide detailed guidance, the responsibility will fall to the Ministry of Environment and Energy (YPEKA) to interpret the decision and determine how to handle pending permits.
This uncertainty has left developers and property owners who relied on NOK’s bonuses in a precarious position. A clear ruling could provide direction, but if ambiguities remain, legal disputes are likely to continue. Observers are keen to see whether the Greek government can provide a legislative solution that avoids further complications.
The Greek Minister of Environment and Energy, Theodoros Skylakakis, has pledged to step in with new legislation if necessary. He has emphasized the importance of protecting those who acted in good faith under the existing laws and limiting potential disruptions. In preparation, the ministry has been holding high-level meetings to respond quickly if the court’s decision leaves critical questions unresolved.
