What are ZYS zones and how do they function?
ZYS zones, or Building Coefficient Reception Zones, are designated urban areas specifically identified to receive additional construction density transferred from other locations. They serve as the essential infrastructure for the legal mechanism known as the Transfer of Building Coefficient (MSD).
The process is managed through a Digital Land Bank, a technological platform that enables the utilization of construction rights that cannot be exercised on their original site. For instance, if a historic building is subject to strict preservation laws, the owner may be unable to use their full legal building capacity without damaging the structure. Through the ZYS mechanism, these unused rights can be legally transferred and utilized by owners of plots located within the designated reception zones.
It is important to clarify that purchasing these rights does not grant unlimited construction potential. The buyer's property must be situated within a legally established ZYS and must adhere to all specific regulatory requirements and local planning constraints.
How much additional construction capacity is being proposed?
The proposed expansion through ZYS zones covers a massive potential area, with studies indicating that 1,854,688 square meters of additional construction could be unlocked. This capacity is distributed across 26 municipal units, including the Northern Athens sector, Achaia, Heraklion, Chania, Magnesia, Phthiotis, Argolida, Drama, and Kastoria.
The current phase of the planning process involves 194 ZYS zones across 50 municipal units. However, the scope is expected to grow significantly. The next stage of public consultation is anticipated to introduce an additional 103 proposed ZYS zones across 24 municipal units. These future zones will target several key regions:
- Eastern Attica: 37 proposed ZYS.
- Central Macedonia: 55 proposed ZYS.
- Eastern Macedonia and Thrace: 8 proposed ZYS.
- Central Greece: 3 proposed ZYS.
Currently, there are 3,837 active building coefficient transfer titles in Greece, representing approximately 428,600 square meters of construction rights. Looking ahead, the potential supply of building rights within the 194 ZYS zones under study is estimated at approximately 16.4 million square meters.
Where will the building coefficient increase in Greece occur?
The proposed increases in building coefficients are not uniform across entire regions; instead, they apply to specific building blocks within the designated zones. The Ministry's studies suggest varying levels of density increases depending on the specific municipality and the current zoning status.
Specific density increases by municipality
The following table outlines the proposed changes to building coefficients in several key areas of Greece as per the current studies:
| Municipality/Area | Current Coefficient | Proposed Coefficient |
|---|---|---|
| Kifisia | 0.50 | Up to 1.00 |
| Lykavrittos | 0.80 | 1.00 |
| Metamorfosi (Industrial) | 1.00 | 1.60 |
| Nea Erythraia | 0.60 | 0.70 |
| Nea Ionia | 0.80 | 1.40 |
| Nea Ionia (Industrial) | 1.00 | 1.60 |
| Neo Psychiko | 1.20 | 1.30 |
| Filothee | 0.60 | 0.80 |
| Psychiko | 0.60 | 0.80 |
| Papagou | 1.00 | 1.20 |
| Cholargos | 1.20 | Up to 1.50 |
| Chalandri | 0.80 | Up to 1.30 |
These figures represent the minimum and maximum values of individual proposals within these areas, rather than a blanket increase for every property in the municipality.
Who is eligible to transfer or purchase building rights?
The transfer of building coefficients affects two distinct groups: those who possess rights they cannot use, and those seeking to increase their construction capacity. The eligibility for transferring rights is strictly defined by legal restrictions on the property.
Owners who can transfer rights include:
- Owners of listed buildings: Those unable to exhaust their coefficient due to preservation mandates.
- Monument owners: Properties facing specific building restrictions due to historical significance.
- Properties subject to expropriation: Land taken for public or communal use.
- Properties in archaeological or historical sites: Where construction is restricted or prohibited.
- Properties with specialized legal restrictions: Any owner facing institutionalized limitations on density.
Buyers of building rights:
On the purchasing side, eligibility is limited to owners of plots located within officially established ZYS zones, provided that the specific plot is permitted to undergo additional construction. The legality of the transaction depends on the property meeting all regulatory criteria established by the Ministry.
What is the impact on 'Category 5' illegal constructions?
The introduction of ZYS zones and the Digital Land Bank provides a potential pathway for addressing 'Category 5' illegal constructions, which involve severe urban planning violations. However, the government has emphasized that this is not an automatic legalization process.
A Category 5 violation occurs when a building significantly exceeds its permitted density—for example, a building permitted for 150 square meters that has been constructed at 280 square meters (an 87% excess). While the Digital Land Bank is being linked to solutions for such cases through the acquisition of building rights, this does not mean all illegal structures are automatically regularized. An owner must still undergo a formal process and meet all legal requirements to potentially use acquired rights to resolve the violation.
What legal challenges and risks face the new plan?
The implementation of these density increases faces potential legal and social opposition. Previous attempts at horizontal increases in building density, based on the new Greek Building Code (NOK), were declared unconstitutional by the Council of State (StE).
For the ZYS framework to become permanent law, the consultation process must be completed and approved through Presidential Decrees. These decrees will subsequently undergo a legal review by the Council of State to ensure they comply with the constitution. Local municipalities may also voice opposition to the increased density in their jurisdictions, citing concerns over urban congestion and the need for more public infrastructure.
Frequently asked questions
How is the value of a transferred building right determined?
The economic value is not based on a simple mathematical difference between permitted and existing construction. Instead, the price is determined by specific valuation rules and legal transaction procedures once the mechanism is fully activated. Factors include the legality of the existing construction and the specific restrictions involved.
Does buying rights automatically legalize an illegal building?
No, purchasing building rights does not inherently legalize a structure. In cases of severe violations (Category 5), the owner must follow a specific legal procedure. The acquisition of rights is only one component that may help resolve the violation, provided all other legal conditions are met.
What is the role of the Digital Land Bank?
The Digital Land Bank acts as the central technological registry for managing construction rights. It facilitates the transfer of rights from restricted properties to the ZYS zones, ensuring that the transaction is transparent, recorded, and legally binding within the urban planning framework.
Can any property owner buy extra building rights?
No, only owners of plots located within designated Building Coefficient Reception Zones (ZYS) can purchase these rights. Furthermore, the specific plot must be legally permitted to accommodate the additional density requested through the transfer.
Will ZYS zones increase the need for infrastructure?
Yes, the studies suggest that increasing building density will necessitate new requirements for roads, green spaces, and communal areas. The planning process aims to balance increased construction with the necessary urban infrastructure to support higher population densities.
Key takeaways
- ZYS zones enable the transfer of unused building rights to designated urban areas.
- Potential additional construction capacity reaches 1.85 million square meters.
- A Digital Land Bank will manage the legal transfer of these rights.
- The plan targets specific areas including Athens, Crete, and Macedonia.
- Legal approval via Presidential Decree and Council of State review is required.
Conclusion
The proposed ZYS zones represent a significant shift in Greek urban planning, aiming to unlock economic value from restricted properties while directing growth to specific areas. By utilizing a Digital Land Bank to manage the transfer of building coefficients, the state seeks to balance preservation with development. However, the success of this initiative depends on navigating significant legal hurdles, particularly the scrutiny of the Council of State, and addressing local concerns regarding infrastructure and urban density. As the consultation process continues, the impact on the real estate market and the urban landscape of Greece remains a central point of analysis.
