Illegal Constructions & Real Estate: The Latest News

What Changes Does the New Extension for Illegal Constructions Bring?

The Ministry of Environment and Energy (YPEN) is moving toward a two-year extension for the legalization of illegal constructions under Categories 1 to 4. While the current deadline was set for March 31, 2026, the new cutoff date is expected to be moved to March 31, 2028. This decision was deemed necessary to provide realistic time for owners and engineers to settle urban planning pending issues of several decades, avoiding a “freeze” on real estate market transfers. 💡

What applies to major violations (Category 5)?

Category 5 properties (buildings without any permit or with major exceedances) have been in a legal vacuum since 2020. Under the new regulations, YPEN is considering reopening the legalization process for this category, but with strict criteria. Priority appears to be given to buildings of public interest and urban residences to enable their energy upgrades and inclusion in funding programs.

New deadlines for submitting supporting documents (Laws 4178/2013 & 4495/2017)

With the new regulation of Law 5261/2025, the real estate market receives a significant breathing space. The deadlines for submitting the necessary documents for Laws 4178/2013 and 4495/2017 are officially extended until December 31, 2027. 💡

What are these documents?

• Architectural Plans: Floor plans, sections, and elevations depicting the violation.
• Topographic Survey: Dependent on the state coordinate system (EGSA ’87).
• Structural Vulnerability Report (DE.DO.T.A.): Or a Technical Report on Structural Control.
• Structural Adequacy Study (MSE): Where required (primarily for major violations or public assembly buildings).

Note: For the older Law 4014/2011, declarations must have been transferred to Law 4178/2013 or Law 4495/2017 to remain active.

Building on plots outside urban plans in 2026

For so-called “small plots” (parcels under 4,000 sqm by way of derogation), the deadline for applying for a building permit or pre-approval is extended until June 30, 2026. This applies provided that the request for the Building Service certification was submitted by the end of 2024. This is a critical regulation allowing construction on plots subdivided prior to 1978.

Extension for Building Permits

Building permits and pre-approvals issued from 2011 onwards receive a generous extension of validity until December 31, 2027. This allows individuals and developers to complete their projects without the stress of an expiring permit.

Changes to the Electronic Building Identity

Parallel to illegal constructions, a two-year extension (until January 31, 2028) is expected for issuing the Building Identity for public-use properties (schools, hotels, hospitals, etc.). It is important to know that the lack of this identity prevents the issuance of building permits and participation in “Exoikonomo” (energy efficiency) programs, while fines for violators can reach up to 10% of the property’s objective value. 💰

Why you shouldn’t wait until the last minute

Despite the extension, legalizing illegal structures remains a complex process. Early filing “locks in” the right to settle and allows for payment of fines in installments. If the deadline passes, the property becomes legally “blocked,” loses its commercial value, and cannot be transferred via sale or parental gift. Collaborating with an experienced engineer, such as the specialized professionals at Topo G.E.S., is the first step in securing your property. 🏡

Will there be a definitive end to extensions?

While discussions for new facilities continue, the official position of YPEN remains the gradual completion of successive extensions. However, in practice, this process is unlikely to end permanently, as many owners remain unaware that their property carries urban planning violations.

The key difference moving forward is that “tolerance” will come at a higher price: for every new extension granted, the legalization fine will increase incrementally, acting as a deterrent for delay. The goal remains the transition to absolute urban planning regularity through the Building Identity and continuous inspections. Unless a new legislative decision arises, the March 31, 2026, deadline will serve as the next critical milestone, separating properties settled on time from those that will remain with permanent legal burdens, higher fines, and reduced market value. 🏡

Illegal constructions in forest lands and “Urban Clusters”

The Ministry of Environment and Energy is reopening the digital platform for forest-related illegal structures, focusing on “urban clusters.” These involve thousands of acres in areas like Attica, Chalkidiki, and Evia, where entire settlements are located within forest land.

Despite previous unsuccessful attempts where less than 1% of areas were declared, the new phase comes with more detailed instructions. Filing under this regulation is vital, as it offers temporary protection from demolition and a suspension of fines, allowing the state to clarify which structures can ultimately be preserved. 💰