By Vangelis Dourakis

Thousands of builders and individuals, as well as the Government itself, are receiving a “heavy blow” from the decision of the Council of State to put a stop to the issuance of building permits based on the provisions of of the New Building Regulation (NOK). Through this regulation, incentives were granted in the form of a “bonus” to the building factor and to the maximum permitted height of a building, in “exchange” for the construction of environmentally friendly buildings and the creation of green spaces.

With its decision to declare the provisions of the NOK unconstitutional – after 12 years of implementation – it leaves thousands of real estate developers, as well as individuals, in the cold… and at the same time “mines” any efforts by the Government to exit the housing crisis.

Who are the big “losers”

Big “losers” from the decision of the supreme court are those who have submitted files for a building permit under the provisions of the NOK, but it has not yet been issued.

The specific portion of citizens, whether they are builders or individuals who build by themselves, should review the permit based on the Presidential Decrees in force in each region.

The amounts they paid to engineers, studies, fees to the state, etc. they range from 15,000 to 60,000 euros. And now they may have to dig even deeper for the revision, changing their design at the same time.

Among the “losers” are also those who bought plots with the prospect of building with “bonuses” in construction and building height utilizing the relevant provisions of the NOK, as they will now have to settle for less square footage.

Development that reduces the value of the property and their investment. The Government itself receives a blow, through the slope, as it loses a part of its arsenal in the “war” against the housing crisis. And this is because, after the decision of the Council of Ministers, the number of apartments that could potentially be put on the market is limited. Thus, housing supply remains tight and property prices will remain high.

Who were saved by the decision of the Supreme Court?

If nothing else, those who have already issued building permits under the NOK were saved, as the Supreme Court did not give retroactive effect to its decision.

Therefore, the permits that were issued under the provisions of the NOK will continue to be valid and the construction works that were in progress or had been frozen, will now continue normally.

It should be noted that, as mentioned in the decision of the SC, the provisions of the NOK initially appear protective for the environment, but their application leads to serious changes in the residential environment with the increase in the height of the buildings.

At the same time, the Plenary decided that the non-counting of the internal exteriors (batteries) and the main use space of 35 sq.m. in the building factor is contrary to the Constitution. on the roof of the building, as well as simulating the swimming pool with a planted surface.