“Fire team” unleashes real estate agents for the delay in solving the “puzzles” with the “bonus» building of the New Building Regulation (NOK) and off-plan building on properties.
The two major urban pending issues have created a “short-circuit” in the market, which has been waiting for a year for regulation by the Ministry of Environment and Energy (ΠΕΝ) for off-plan construction as well as the final decision of the Council of State (StE) on the constitutionality of the incentives given by NOK for extra construction.
Large construction companies, real estate agencies but also the technical world, as expressed through the Technical Chamber of Greece (TEE), have intervened in favor of the benefits of NOK
The Gordian bond of NOK and the reactions
Already large construction companies, real estate agencies and the technical world, as expressed through the Technical Chamber of Greece (TEE), have intervened in favor of the benefits of NOK.
As yesterday, from the stage of the Executive Breakfast of this year’s Prodexpo, representatives of the market, referring to the legal entanglements with building permits that took extra…boys and square meters based on the motivations of the building regulation, emphasized how the international image of the Greek economy as an investment destination is affected and the effort to implement serious investment projects is undermined.
The general director of the Athenian Finance, Mrs. Dika Agapitidou, referred to the huge delay in the implementation of the NOK, saying that uncertainty is the worst advisor.
12 years of itching for a law that got stuck in the Supreme Court
«There has been a lot of fuss and furore over a law passed in 2012. It took us 12 years to realize there is an issueshe emphasized, pointing out that the decision of the Plenary Session of the Council of Ministers is expected, which will judge whether the provisions on the NOK’s construction “bonuses” are constitutional.
In the meantime, as he pointed out, projects have progressed, buildings have been erected and now they will have to be demolished, while he estimated that the only way to eliminate the turmoil that has been created is consultation and compromise from all sides.
Calvary is the transition from mortgage offices to land registry offices
For his part, Mr. Panagiotis Bernitsas, Managing Partner of Bernitsas Law, after acknowledging the progress achieved in terms of improving the economic climate and the lively investment interest of foreign investors, referred to the bad texts plaguing the domestic market real estate, focusing on NOK.
In fact, Mr. Bernitsas also referred to other problems that create bottlenecks in the real estate market, pointing out the transition from mortgage offices to cadastral offices, as well as the 500,000 objections to forest maps, with most of their review committees not yet established.
A solution here and now because the reputation of the country is affected
The need for an immediate solution was underlined by the CEO of Ten Brinke Hellas, Fotis Yoftsios, underlining that at the moment the image of the country as an investment destination is being affected.
«When you have made a business plan with specific assumptions regarding building factors and afterwards the administration comes and reverses its decision, and permits are revoked, there is a problem. We need credible legislation. We have to step on certain laws. We don’t want to be irregular“, he noted characteristically.
Insecurity and arbitrary interpretation of regulations
As he argued, investors need reliable real estate legislation while he pointed out that “the image of the country is affected from front to back with building permits. There is enormous insecurity and many have been damaged by this situation.”
Finally, Makt’s CEO, Maximos Kalatzis, highlighted the problems created by anarchic construction, underlining that the NOK was given without clarifications, allowing different interpretations.
The intervention in the CoE for real estate
It is noteworthy that, with their intervention before the Plenary Session of the CoE, six construction companies (Panagiotis Spyrakis and Co., ISV Technical Construction, Nikolaos Sarantis and Co., Ten Brinke, Sigma Greentech Constructions and Bitsos Development), whose building projects have been “frozen” with decisions of the 5th section of the Supreme Court of Cassation, with their intervention among others, argue that “the regulations of the NOK are special and concern the respective building under construction, which exceptionally only, sacrificing coverage (from that allowed under the special plans) or exploitable building (to create a planted roof), increases the building factor or its maximum height on such a scale that, according to the legislator and the data he took into account, it is impossible to undermine the residential or natural or cultural environment”.
Municipalities and local urban planning
In the same vein, the TEE intervened in which it is pointed out that the incentives established by the NOK for real estate are aimed at the voluntary adaptation of owners and builders to adopt practices that improve the footprint of the building, while underlining that the buildings that they are built exploiting the building “bonuses” of the NOK “they are built on already developed plots, after first demolishing old and energy-consuming buildings”.
In the opposing camp, municipalities, with the support of the Central Union of Municipalities of Greece (KEDE), as well as citizens’ bodies and organizations, who started the legal battle for building heights, the horizontal increase of urban dimensions (height, building factor) by law is unconstitutional, as the urban planning dimensions of each area must result from local urban planning.
Engineers and property owners (POMIDA) believe that with the proposed regulations for off-plan construction, the property of a significant part of the Greek people will be devalued
Short circuit in the real estate market and off the plan
At the same time, both the engineers and the property owners (Panhellenic Federation of Property Owners – POMIDA) believe that the promoted regulations for off-plan construction will devalue the property of a significant part of the Greek people.
In fact, a few days ago, the German company Global Immobilien Service (GIS) addressed an open letter to the Greek government pointing out the need for a transitional arrangement until the country’s urban planning is completed.
The two speeds are out of the plan
It should be noted that construction activity in the non-planned areas of the country moves at two speeds, as other urban planning authorities take into account the cancellation decisions of the Council of State (Council of State) and have “frozen” the issuance of permits that make use of NOK incentives, while others issue corresponding licenses.
In the last two years alone, the Supreme Court of Annulment has issued six decisions canceling building permits for off-plan plots, pointing out that the perfection of four acres is not enough, but a “face” on a road with urban planning recognition is required.
The Supreme Court cancels building permits
The first one in the spring of 2023 concerned a building permit in Patmos, the second permit for a warehouse in Chalkida with the supreme judges requesting additional scientific impact studies, while last Spring in decisions on permits in Rhodes and Arta the obligation is repeated “person» in a legal way.
In the last two months, two more decisions have been added that cancel a tourist investment in an off-plan area in Crete and the illegal recognition of a section of road in Antiparos as pre-existing in 1923.
The letter – bell of the German company
As stated in its letter to the Greek state, the German company which serves clients from Central Europe (Germany, Austria, Switzerland) who want to acquire property in Greece, investments in our country of more than 40 million euros are canceled and orders of more than 100 million euros for the next 5 to 7 years due to the “gordian” link with off-plan building.
It should be noted that last week the Prime Minister Mr. Kyriakos Mitsotakis announced that he will soon go to the Parliament a regulation adapted to the requirements of the Council of Ministers with strict restrictions on off-plan construction and the abolition of the right of way on “blind” plots, directing the construction to organized receivers .
The arrangement will be transitional and will be valid for two or three years, that is, until the urban planning of the country is completed so that every citizen and investor knows what can be built and where.
Source: ot.gr
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