Discussion Paper Series, 8(7):145-176
Land Policy:
Overview of Greek Land Property and Relations
Eleni Stamatiou
Adjunct assistant Professor, University of Thessaly
Department of Planning and Regional Development
Pedion Areos, 38334 Volos, Greece,
tel: +30 4210 74686
e-mail: [email protected]
Abstract
This article regards land relations in Greece, as they are shaped based
on the land tenure and property status and similarly on mutual
dependencies with land policy and space planning. It contains an
historical retrospection of land ownership from the establishment of the
modern greek State until today in connection with the sociopolitical
framework, it examines the participation of the State in the regulation
of land relations and the management of land resources, the forms and
mechanisms of land usage, the land valuation system, land taxation,
land transactions and are not omitted references to amortization, credit
and financial risk insurance, etc. As far as programming and planning
of land issues are concerned, obvious is the orientation of the
corresponding
institutional
framework
towards
sustainable
development.
Key words: Land relations, land market, land policy, land valuation, land taxation system,
land transactions
May 2002
Department of Planning and Regional Development, School of Engineering, University of Thessaly
Pedion Areos, 38334 Volos, Greece, Tel: +304210 74462, e-mail: [email protected], http://www.prd.uth.gr
Available online at: http://www.prd.uth.gr/research/DP/2002/uth-prd-dp-2002-07_en.pdf
Land Policy: Overview of Greek Land Property and Relations
147
1. Historical Framework
The Historic Review of the Formation of Land Tenure and Land Relations in the Modern
Greek State from its Establishment to today, based on the most significant eventsmilestones can be divided into four periods: a) from 1828 to 1923, b) from 1923 to the
’70s, c) from the ’70s to 1985 and d) from 1986 to date.
Most interesting are the role of the State and the strong influence of socio-economic
factors in the structure of Land Space for these time periods. It must be emphasized that
Town Planning experienced a significant development in the decades which followed
World War II when the foundations were put in place for the related field of
Environmental Protection and Management.
1.1 Period from 1828 to 1923
The state of land ownership in modern Greece has its roots in the Turkish occupation1,
during which the rural areas of the country belonged to the Ottoman Empire, as well as
to the Greek landowners and the monasteries. The type of the large farm, called
‘‘tsifliki’’, had already dominated the country, while small country estates are located
mainly on mountainous areas and the islands.
Under Ioannis Kapodistrias government (1828-31), and in the framework of a
modernization policy, an attempt was made to ensure the protection of small
landowners rights, to promote the plans of land attribution to the fighters of the Greek
Revolution (for the liberation of Greece from the Turks), to put under political control
large land properties with the imposition of modern and efficient cultivation methods, etc.
The liberation of the Greek nation from the Turkish yoke was followed by the first official
approaches to spatial planning, in the framework of efforts aiming at the reconstruction
of the country. The drawing of the first ‘‘City Plans’’ or development plans starts during
this period of time (of Patras in 1828, of Pylos in 1829, of Athens in 1830, of Nafplio in
1834, etc.) without, the existence of a legislation on town planning. The state's
intervention, concerning the construction of buildings rather than town planning was
limited to the laying down of police regulations rather than provisions of a town planning
act, related to regulations on each individual building rather than the urban tissue.
During the Bavarian Conquest and the monarchy of King Othon (1833-1862), in the
framework of the economic reconstruction of the country, the number of small
landowners was increased but no rehabilitation program was applied for the large
1
The period of time during which the Greek nation was under the Turkish yoke. This period lasted from 1453
(the Conquest of Constantinople) to the Revolution of 1821 and the foundation of the modern Greek state in
1832.
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Eleni Stamatiou
number of landless people. In 1836, the first attempt to introduce a Land Register was
made by a King Othon’ s decree, but failed [EKDOTIKI ATHINON, 1994].
During the long reign of King George I (1846-1913) and as the country started joining
the economic prospects of Western Europe, a big part of the national lands was
distributed to small landowners, which led to the dramatic increase of cultivated lands
[EKDOTIKI ATHINON, 1994]. The most characteristic work of this period is the
desiccation of the Lake Copaida. This period was also marked by the construction of a
network of infrastructures and public works at national level (roads, railways, etc.) with
the expected impact on the restructuring of land use.
The annexation of Thessaly (1881) to the Greek state added to the Greek territory a
great part of rural lands, which however belonged to a small number of landowners
(called ‘‘tsiflikades’’) who took advantage of the majority of the landless share-croppers,
the so called ‘‘colligi’’. This situation changed in 1917 (under Eleftherios Venizelos’
government) after the re-allotment of land and the expropriation of ‘‘tsiflikia’’, a milestone
in the history of the Greek modern nation. The size of the average plot per family varied
for reasons related to the geological and morphological features of each area's
distributed lands and the requisitions of the agrarian reform, which depended on the
spatial lay-out of the expropriated lands and the number of the rehabilitated landless
families [ROCOS D., 1981: 80].
The 1880’s decade signaled, due to needs resulting from the annexation of new
territories to the Greek territory2 and the subsequent population increase, the beginning
of a series of spatial and town planning reforms, especially in the capital of the country,
with the land division, the fixing of the maximum authorized altitude of buildings and the
coordinated state intervention with the construction of a series of works.
From the beginning of the 20th century, there was a considerable amount of proposals
made by Greek and foreign experts or empirical planners in order to achieve a balanced
distribution and spatial arrangement of important functions in Athens and its wider
region, as well as the prediction of feature needs.
The rehabilitation of the refugees of the Asia Minor catastrophe in 19223 was
materialized with the use of more than 9,350,000 stremmas (5,353,802 of cultivated and
cultivable lands and 3,996,198 of woodlands and grazing lands/pastures) which had
devolved to the Greek Government as the biggest part of the rural properties of the
Greek regions that were liberated and belonged to the Turks who left the country during
the population exchange [ROCOS, 1981: 81]. The forced installation and housing of the
2
In 1864 the Ionian islands were annexed to the Greek territory, in 1881 the borders were extended to
Thessaly and a part of Epirus, and in 1912-13 Epirus, the biggest part of the historic and geographic entity of
Macedonia, Crete and some islands of the Aegean Sea were annexed to the Greek territory. In 1919-22, the
country was extended to Asia Minor and to Thrace and it finally maintained Western Thrace. In 1947, the
Greek territory took its actual form with the official annexation of the Dodecanese.
3
The Greek expedition to Asia Minor (1919-1922) ended up to the defeat of the Greek army by the Turkish
army and the expatriation of nearly 1,500,000 Greek people who took refuge in Greece.
UNIVERSITY OF THESSALY, Department of Planning and Regional Development
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149
refugees around the country lead to the creation of new settlements and the rapid
expansion of urban agglomerations.
1.2 Period from 1923 to the ’70s
This period was signaled by the adoption of the Presidential Decree of 1923
(17.07/16.08.1923) on ‘‘City Plans, Large Villages and Agglomerations of the State and
their construction’’, which constituted (with some alterations) the basic legislative
framework of urban planning for half a century. Based on this specific urban planning,
the Greek territory was divided in: a) areas included in the City Plan (with an approved
street layout plan), b) agglomerations which existed before 1923 without an approved
street layout plan, governed by their own institutional regime, and c) areas "not included
in the city plan'', that is agglomerations that were not included in the street layout plan
and existed before 1923, regulated (inefficiently) by a Presidential Decree
[ARAVANDINOS, 1997: 96].
Some deviations and alterations in the implementation of this first General Building
Regulation issued in 1929, as well as some law deficiencies, favored the creation of
unauthorized (illegal) agglomerations that the Greek Government legitimized and
subsumed into the urban tissue. The characteristic illegal (e.g. with unauthorized
buildings) or legal (annexation of private agglomerations which were not included in the
town plan) urbanization of a large part of the lands that were not included in the town
plan led, some decades later, to the ‘‘ribbon development’’ of permanent or holiday
residences, of tourist installations and industrial plants, especially on the coastal areas.
In 1940, the Greek Government adopted the so called Obligatory Law 2344/1940 (‘‘on
the foreshore and the beach’’), still in force, in order to confront the trespassing of the
foreshore [STAMATIOU, 1997].
The period after the end of World War II concurred with the Government's efforts to
restore the natural and, the most important, the built environment. The decade of 195060, a period of reconstruction and planning restructuring for Greece, was characterized
by a change in the country's demographic composition due to the influx of rural
population to the cities, especially to Athens, and the immigration wave. At the same
time, there was a gradual abandonment of the countryside and a shrinking of the
agglomerations.
The new legislation concerning urban development (such as the increase of the
maximum authorized altitude of buildings in 1948 and the adoption of the General
Building Regulation in 1955, which led to the maximum exploitation of land and to the
increase of built volume), as well as some economic measures, such as building loans,
which in combination with a support system of entrepreneurs allocated the building
sector to private entities, encouraged land speculation and urban tissue deterioration in
Athens, with building additions and extensions.
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Eleni Stamatiou
In the same period, the Government started assigning the working out of regional
planning to private entities, despite the deficiencies involved in such an important
planning attempt.
1.3 Period from the ’70s to 1985
The Constitution of 1975 comprised some general principles and guidelines concerning
the protection of natural and built environment, as well as of the planning restructuring of
the country. At the same time, through some other provisions (on the protection, the
social role of ownership and its participation in town planning, town functionality,
government's care for the acquisition of a house towards those who do not own a house
or those who live under adverse circumstances, etc.) has determined some guidelines
concerning spatial arrangement [ARAVANDINOS, 1997].
The modernization of the legislative framework governing town planning was connected
to the adoption of laws such as:
-Law N. 360/1976 "On Planning and the Environment", for the application of
constitutional provisions. This law was an important step towards the formation of a
legislative framework for the conduct of planning policy and also determined the
procedures for the working out, the approval and the application of the National and
Regional Planning.
-Law N. 998/1979 "On forests",
-The Presidential Decree for the boundaries of agglomerations created before 1923,
-Law N. 947/1979 "On housing areas", for the implementation of Article 24 of the
Constitution, which was inactivated (as it contained provisions for contributions in land
and money) and replaced by the "Housing Law" 1337/1983 in order to satisfy urgent
planning and housing needs. That was the start of the Planning Restructuring Enterprise
for the working out of urban plans for all Regional and Local Authorities on areas of
main residence. Since then, the working out, the approval and the implementation of
urban plans, as well as the planning of all the regions of the country is carried out only
by the Government, the Regional and Local Authorities and other government entities.
Moreover, another important decision has been the revision of the General Building Law
of 1972. The General Building Law of 1985 was a repetition of the previous General
Building Laws (1973, 1955, 1929) in many of its parts, but it mainly concerned regions
that could not be developed under Law N. 1337/1983. Its provisions, as long as they
serviced the public interest, were not subject to modification under an agreement
between the real estate owners.
The most characteristic expression of this new concept was the foundation of the
Ministry for Housing, Planning and the Environment in 1980, which in 1985 was
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reorganized and renamed Ministry for the Environment, Regional Planning and Public
Works [ARAVANDINOS, 1997].
A series of laws that followed, despite the fact that they did not lead to the expected
results, contributed to the sensitization of the public opinion to planning and
environmental matters.
1.4 Period from 1986 to date
The beginning of this period was marked by the adoption of the Framework Law for the
Environment (Ν. 1650/1986), which contained provisions for the imposition of
restrictions and regulations on the function and development of activities while it
prerequisites Environmental Impact Assessments. In combination with the Community
environmental legislation which is incorporated in the Greek legislation, there has been
progress in handling all the related matters.
As far as large rural property is concerned, of which the potential transfer to the
Government gave rise to much controversy between government, local and Church
authorities over the last twenty years, at its present form, contains [ROCOS, 1981: 86]:
• Land estates that have never been expropriated.
• Parts of land estates that were excluded from expropriation.
• ‘‘Tsiflikia’’ that are governed by a series of conventions concluded between 1926 and
1931 (a period of agrarian reform) and concerned farms of a total surface of 22,215
stremmas where it was not possible to apply the scientific methods foreseen by the
Greek government.
• The land estates that belong to the monasteries and the Church, the majority of
which were excluded from the expropriation that was imposed by Article 119 of the
Constitution of 1927 and governed by Law N. 4082/1929 and the Rural Code
2880/1941.
• The ‘‘tsiflikia’’/large land properties created lately as a result of the rapid
abandonment of the countryside because of the immigration wave and the influx of
rural population to the cities and the concentration of land of small value (due to
splintering off and small productivity, etc.) to big industrial groups and investors,
Greek and foreign tourist companies, etc.
In the early 1990’s, legislation on private planning was adopted. A small number of
proposals were materialized, since they were not subsumed in wider regional planning.
The introduction of the New Housing Law 2508/1997 on the Sustainable Development
of the Cities and Agglomerations of the Country, having as subject the protection and
the environmental upgrading of town centers, of social, economic and cultural cores of
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Eleni Stamatiou
cities and agglomerations, as well as of green spaces and the rest of natural,
archaeological, historic and cultural elements of the wider regions of the country’s cities
and agglomerations [BERIATOS, 2000]. Because of the late adoption of the relevant
Presidential Decrees, its implementation has not yet started. The above-mentioned law
is considered to be an addition to Law 1337/1983, so that the latter is aligned to the
general guidelines of the European Union for a sustainable use of space [STAMATIOU,
2000].
The new Law 2742/1999 ‘‘on planning and sustainable development’’ which was
adopted recently improves the previous Law Ν.1650 ‘‘on the protection of the
environment’’.
2. Forms and Mechanisms of Land Policy
2.1 Socio-Political Land System and its Lawful Basis
For the purposes of modernization and application of democracy, the standing
Constitution of 1975, apart from the abolition of confiscation and the protection of
property (a subject-matter of the recent Greek Constitutions), underlines the
specification for a frame of adjustments towards the establishment of a land property
policy, given the existing social structure. Small property is the representative unit of
urban (and rural) space in Greece. Combined post-war socioeconomic conditions and
inefficient institutions, led to the option of self-housing and acquisition of the minimum
urban land, or the significantly less expensive suburban land, initially in order to
immediately solve the housing problems. The consequences were a sprawl of the urban
space and the pursuit of profit from the incorporation of surplus value due to land
urbanization. Thus, the formation of freehold lands (building plots, in urban areas) was
mainly due to current processes (settlements before 1923 or areas with illegallyconstructed buildings, which led to the formation of a new urban land), rather than
official, research-based urban plans. The size of urban space unit was determined by
Decree Law 19.03.1927 and Law 3741/1929 about ownership by flat or level, joint
ownership, and vertical ownership, that is, the right of owning a certain percentage of
land in the same building plot.
2.2 Forms of Land Property
Real estate in Greece applies in the following forms: of individual and of legal entities,
the latter being distinguished in those of Associations, of Public Law bodies and
institutions (Municipalities and Communities) and of Societies or Legal Entities governed
by Private Law. Forest sites are exclusive property of the State and the Public Law
bodies and institutions (TABLE 1), as opposed to rural and urban sites, which can be
UNIVERSITY OF THESSALY, Department of Planning and Regional Development
Land Policy: Overview of Greek Land Property and Relations
153
private. According to the Civil Code, which governs property titles (ownership, servitude,
collateral and mortgage), public buildings, areas of public use (parks, roads, ports,
marinas, banks of navigable rivers, lakes and their banks, seashores, beaches, etc.)
and all sites serving public, communal or religious purposes (article 966) are not private
property objects, therefore not considered as objects for transaction. Public use property
belongs to the State, unless it belongs to a Municipality or Community, or otherwise
stated by Law [ROCOS D., 1981: 55]. Concerning the legal status of ownership, the
greatest part of tillable land belongs to individuals. Cooperative properties are not found
in the majority of the administrative regions (TABLE 2) [ESYE, 2001a,b]. The distribution
of holdings, in order of magnitude, shows that its greatest percentage (20.01%) ranges
between 10-19 stremmas, while the 21.67% of total holdings’ area ranges between 100199,9 stremmas. Of the land belonging to legal entities, the greatest percentage
(20.39%) is of 200 stremmas and over. Most holdings belonging to cooperatives, the
State, legal entities of Public Law, etc. are found in the class of 200 stremmas and over
(TABLE 3) [ESYE, 2001a,b]. Concerning the land tenure status, the distribution is
mainly private holdings, followed by those of various types of tenure status, share
farming and, finally, rented (TABLE 4, 1991 census, the most recent related) [ESYE,
2001a,b].
2.3 Forms and Mechanisms of Distribution, Re-Allotment and Use of
Land Resources
The State has the constitutional right to interpose and limit ownership in cases of “public
benefit which must be duly proven” (Article 17 of the Const.), according to legislation,
and always with full compensation, equal to the property value at that time. No
compensation is allowed in case of tunneling for infrastructure purposes, provided that
the regular exploitation of the surface estate is not damaged. At the same time (Article
24), owners are allowed to participate in the development of residential areas, so that
the estate will be at least of “equal value” after the renewal, while protection of traditional
sites and settlements is also provided. Furthermore, for those benefiting from public
utility works or structures for general economic development, Article 106 allows the
possibility of their participation in public expenses. Cases of state intervention for public
or social benefit are:
! Property distributions: an institution that was more effective in the past, allowing
concession of estates (farmlands, etc.) to landless citizens, at a symbolic or zero price,
for the purpose of those citizens’ housing, living and occupational rehabilitation. Parts of
these lands would derive from expropriations or state property of low market value, and
be located in county regions, to enhance their demographic and housing development.
! Re-allotment: Re-allotment in rural areas is the formation, structure and
concentration of individuals or legal entities land property into less in number, bigger
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Eleni Stamatiou
farmlands, or at least such that the form, position and arrangement of their limits allow
optimum productivity and utilization. The relevant state agency is the Ministry of
Agriculture [ROCOS, 1981: 109]. However, procedural delays and lack (until recently) of
a land register, as well as the inefficiency of association-based incentives on behalf of
the rural population, did not bring the expected results [ROCOS, 1981: 89]. In the case
of urban re-allotment (Law 1337/1983), the overall relevant procedures aim to the area
being renewed, by all proprietors contributing their property for construction and
redevelopment, and the granting of new plots of value equivalent to the old ones, after
the value of contributed land being subtracted [TZIKA, 2000 :145-146].
! Expropriations: Land expropriations aim to facilitate implementation of public works,
urban design plans, and conservation of traditional buildings or archaeological sites, etc.
Compensations cannot be overvalued, but must correspond to the full real value before
expropriation, so that the State find no difficulties and be able to obtain the necessary and eventually expensive- land [ZENTELIS, 2000: 28]. According to the current
institutional framework (L. 5269/1931, R.D. 29.04.1952, Decree-law 791/1971, L.
653/1977, etc.), expropriations are acted out at an undervalued price, or even at a
magisterially overvalued price, of the land. Usually, the appreciation of land properties
that benefit from the intervention is significantly larger than their participation in the
compensation payment. The fact that those who do not participate in the compensations
may also benefit, along with the existing policy, necessitates the new approach and
revision of the latter.
! Built-surface ratio transfer: It is an alternative compensative solution, which was
applied abroad with satisfactory results. In Greece, the above policy was applied as an
option of transferring the value of the expropriated area, increased by 10%, and
implementing it in another estate, private or else, within a specific period of time. The
institution aimed at the satisfaction of certain urban tissue needs, such as [ZENTELIS,
2000: 29]: architecture and urban planning specifications (listed buildings, reduction of
population density, urban area recovery, etc.), settlement development demands (parks,
green strips, etc.), the need for landscape protection, etc. Built-surface Ratio Transfer,
despite its institutional positive points, was not successful, due to certain arrangements
so far considered as unconstitutional. A new arrangement for the absorption of the
existing relevant titles is soon expected.
! Urban planning interventions: The State, by its urban development legislation (L.
947/1979, L. 1337/1983), can intervene into the formation of urban space, as well as
into the appreciation of real estate. The latter is formed by either the incorporation of
new estates in the town plan, or the redevelopment of existing town areas, after which
the estates' total value is increased. The expected land or financial contribution and the
statutory commitments (the resulting value shall be equal or higher than the initial)
define new value ranges, related to the procedures of land “upgrade” to urban.
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Estimation of estate new values (e.g., by relevant agencies) is not always effective or
reliable.
! Unauthorized construction treatment: Cases of constructions being carried out: a)
without legal authorization, b) by exceeding this authorization, c) with authorization
being revoked, d) by breaching urban planning provisions, and e) by illegal change of
use, are generally treated by demolition and fine payment (Law 1337/1983). For illegal
buildings constructed before 31.01.1983, demolition is suspended (after a specific levy
is paid), in special cases (of aesthetic, environmental or static character). Suspension
policy excludes illegal constructions located at: a) urban public areas, foreshore and
beaches, b) international, national, provincial or communal road safety lines, c) public
land and flumes, d) woodland or reforestation areas, e) archaeological sites. Moreover,
in order to confront unauthorized construction, legislation excludes illegal buildings from
connecting to water supply, drainage, electricity and natural gas networks.
2.4 Forms and Mechanisms of Ownership, Use and Disposition of
Land Property
According to legislation, ownership is defined as a right of economic content, and its
exploitation and free use is legally protected (Article 18 of the Constitution). Authority,
which has the form of tenure and rights in rem, is ruled by the Law of Property, included
in the Civil Law. The latter concerns the limitative determination of rights in rem, the
arrangement of tenure issues, the equity of ownership, the means of possession and its
protection, joint-ownership, servitude rights in rem, transfer issues, security in rem
(pawn and mortgage), etc. The documentation and validation of ownership rights results
from registration in the National Land Register. Transcription consists in a means of
pronouncement of ownership transfer acts, and completion of the relevant contract. Any
alteration of a right in rem upon an estate can take place only after the transcription of
the alteration [ROCOS, 1981: 61].
2.5 Government’s Participation in the Regulation of Land Relations
and the Management of Land Resources
The protection of ownership and the legal restrictions related to it result from the
International, Constitutional, Civil and Public Law (ZENTELIS, 2000: 11). According to
the existing Constitution of 1975, the Government has the responsibility to protect the
environment (Art. 24), the ability to intervene for or against, and (Art. 25) to coordinate
and plan the economic life of the country, and therefore, the real estate sector. To
confront the impact of real estate market to the economic development, during the last
decade, Greece, as many other countries, has taken fiscal measures and adopted land
policy regulations without, however, achieving the expected results. It is worthwhile
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Eleni Stamatiou
mentioning the intervention of the Greek government in some instances, for example
through rent control, subsidized rent and the construction of worker's houses aiming at
providing sufficient housing to low income families though the relevant authorities.
Besides, some constitutional provisions (Art. 18) authorize the legislator to regulate: a)
matters concerning ownership and disposition of mines, caves, archeological sites and
national treasures, natural medicinal mineral flowing and underground waters and
underground resources, b) matters concerning ownership, exploitation and management
of lagoon and big lakes, as well as the disposition of the areas resulting from their
desiccation. It is clear, therefore, that the disposition and exploitation of national wealth
is materialized according to the plan (Art. 106) and under the coordination of the Greek
government and aims at the development of all the sectors of national economy. Natural
resources management and its control are considered as insufficient for the majority of
the (classified in categories) protected areas for reasons related to the vague
distribution and overlapping of competences, as well as to the lack of coordination
between the administrative authorities.
A rare phenomenon is land acquisition for the management of protected areas by public
authorities or non-government organizations4, as the majority of state parks, aesthetic
forests, natural monuments, etc. belong to the state. We could, generally, say that the
International Institutions and the European Union commands (on Environmental Impact
Assessment), as well as international conventions content (Ramsar Convention on
Wetlands, etc.), are respected, although with a relative delay, while the materialization
of projects which are financed by the European Union was fragmentary [BERIATOS,
2000]. The management of some ecologically sensitive areas is already limited because
of the proportionally restricted financial government support. If the Government is
interested in an area, its owners and users are opposed to selling it, as compensation in
expropriation cases is very low, although the purchase of new regions is not profitable
for the Government. Due to the lack of a Cadastre, confusion or doubt about land
property borders constituted a very common phenomenon until recently. In such cases,
the justice gave its ruling on the basis of an investigation and an expert report made by
specialized scientists [ROCOS, 1981]. In many cases related to the settlement of claims
and conflicts between the Government and citizens for property matters (public land
usurpation, forest trespassing, etc.), the opinions of the competent institution, the State
Council, have constituted the basis for the creation of an important case law.
3. Land Market
The Greek land market has recently started to develop rapidly. The deregulation of bank
lending for real estate financing, insurance companies or banks need for large-scale
4
WWF with the financial support of the EU, has bought nearly 300 stremmas on Sekania beach in the
Laganas gulf of Zakinthos island, a biotope of great importance for the sea turtle species Caretta caretta and
is promoting its restoration and management [STAMATIOU, 1997].
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estimates, the need for managing and developing the private property of public and
private organizations, and the fact that a certain number of real estate companies are
listed in the Athens Stock Exchange have created a favourable climate for this sector’s
development. Real estate speculation is a quite common phenomenon in a country with
a partially unstable economy, while available and highly demanded land is regarded as
limited.
3.1 Objects and Subjects of Land Market
Land market is a unified market and the mechanisms governing its function comprise all
kinds of real estate. Apart from wooded and rural areas, land market is divided in urban,
commercial, industrial and special land use market. The buyer and the seller can be: the
Government (legal entities of Public Law), Organizations of Local self Government,
cooperatives, companies, individuals, etc. The complexity of real estate market is due to
the legal relation and the financial dependence of its most important factors, mainly the
investor, the lender, the owner and the Government, which often have conflicting roles
and interests. Real estate agents constitute another important factor, which plays a
temporary role in some stages of market analysis [ZENTELIS, 2000: 61]. The current
function of real estate market in Greece, as elsewhere, is basically influenced by a) its
structure and the degree of competition, b) the creation of the value, c) the conditions for
market equilibrium and market efficiency, and d) Government Intervention. As it occurs
in urban (and rural) real estate, the factors influencing the market and prices are
examined at national, urban, town district and other levels [ZENTELIS, 2000: 87-116].
These influencing factors are political, social, economic and spatial (town and urban)
planning, and rarely, unusual (Commitments concerning the use and ownership and age
of buildings, legal status, special market conditions, etc.)
3.2 Transactions in Land Market
The usual procedure for real estate transfer includes several actions throughout a time
period. It begins with the owner’s decision to sell his/her property, and continues with: a)
a possible contact with the realtor in search for a possible buyer, b) negotiations
between the two sides with an offer suggestion, c) preparation of a sale agreement, d)
titles check – loan contract – compliance with contract engagements (on behalf of the
buyer) and titles delivery – preparation of the final contract – prerequisite repairs (on
behalf of the seller), and e) contract signing. The notary document is subject to
transcription5 at the local Registry of Mortgages where the estate is located, and is one
5
The same type of notary document is required for the preliminary agreement of transferring ownership upon
real estates, one of the most common ways ownership was transferred in Greece, especially in areas the use
of which was being altered or about to alter. More than 90% of agricultural lands that were bought by cooperatives (plot and construction associations) and illegally urbanized in the last four decades, as well as the
total of agricultural holdings that were altered to “building-plots” have become objects of over-marketization
[ROCOS, 1981: 60].
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Eleni Stamatiou
of the constituent elements of the contract. Offer and demand work as the last set of
both sides’ actions before they finally agree and sign the contract. The effect of the
contract terms, the realtor’s presence, and the transfer cost are determinative factors for
the realization of the transaction.
Other types of transfer are the following:
! Lease: The duration of lease usually is not less than a decade, when the leasing
becomes much less expensive than bank loans. According to the Greek legislation,
leasing companies are ruled by Law 1665/1986 and Law 2682/1999. The types of real
estate lease refer to properties of housing or non-housing service and concern daily,
monthly, annual leasing or more (multiannual leasing) [ZENTELIS, 2000: 198].
! Mortgage: Acquisition of an estate mortgage requires a title granting the right of
mortgage and registration in the mortgage book. This title is, depending on
circumstances, held by [ROCOS, 1981: 64-65): the State, Οrganizations of Local self
Government, religious or public benefit foundations, and Legal Entities of Public Law,
heirs, etc. In addition, the title for mortgage acquisition may be provided by final
judgments of civil, administration, penal or other special courts, in cases of pecuniary or
pecuniarily estimated benefit, and also by executory judgments of arbitrators or foreign
courts [ROCOS, 1981: 64].
! Gift: The value of the donated estate, which is estimated according to legal
provisions (Article 41 of Law 1249/1982) or by the superintendent of the local public
finance department, in areas where the objective estate value system does not apply, is
deducted from the donator’s income tax.
! Inheritance: Arrangement of estate transfer in case of death is subject to relevant
Civil Law provisions (Law of Succession).
3.3 Risk Insurance
The support for buyers, by financing organizations, depends greatly on the amount of
the loan. The ratio of the loan by value (L/V) can range from 0% to 80% for Greek
standards, with a maximum acceptable limit of drachmas for each case. In Greece,
[ZENTELIS, 2000: 173] the loan interests rates for real estate purchases do not change
in relation to the amount of capital, but are negotiable for large investments in real
estate purchases. In cases of house loans from financing organizations (National Bank,
etc.), facilitations can be utilized (large time span for full repayment, low monthly
installment, etc.) for certain categories of borrowers (concerning a purchase of a first
house, etc.).
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3.4 Monetary and Security Turnover
The returns on the investments in real estate or buildings and in land trading etc. point
out the leading economic role of Greek land in all facets of production. Price evolution of
real estate in Greece and the potential return guarantee positive interest rate of the
invested capital, something that until recently could not be materialized by offered
alternative options [ZENTELIS, 2000: 24-25]. Partial (for deterioration, damage, theft,
etc.) or total insurance of investments, ownerships etc. is offered by mainly private
insurance organizations and companies. The total of compensations depends on the
scale of financial contributions and on the corresponding insurance programme.
3.5 Relevance between Purchase of Land and Land Purchase Prices
in individual Transfer Categories
From the data processing carried out by the National Statistical Service of Greece
(NSSG) for the value "on the basis of a declaration" of real estate transferred on account
of a purchase, as well as for the respective rate of transfers done during the period
1981-2000, the following facts came to light (having to do with the evolution of real
estate prices) [ZENTELIS, 2000: 37]: a) the behavior of prices is diachronically different,
depending on the type and region of land. Nevertheless, the corresponding information
is relatively similar, b) the changes in stable prices, regardless of real estate type and
region, verify that the increase rate of current prices was greater than the inflation rate.
In Greece prices are rated on the basis of market value. This was institutionalized by
laws Ν. 11/1975 (article 6) and Ν. 542/1977 (article 38). For special real estate cases of
particular specifications such as e.g. landmarks, solar or experimental constructions,
standardized or prefabricated real estate, holiday homes, etc., the usual evaluations
may be impractical as the designation of value and of the final market price involves
additional relative factors (certain historical or aesthetic value, usage of unconventional
building materials, etc.).
The cases involving the influence that changes of special technical regulations have on
the configuration of real estate prices are characteristic. Such cases are: a) the
increases (1968) or the reductions (1978) of construction coefficients or the lowering of
accepted heights, according to the General Construction Code (2000), b) the new
regulation of heat insulation in buildings or the new antiseismic regulation or obligatory
installation of natural gas in new buildings or the fire safety regulation for new buildings,
et al [ZENTELIS, 2000: 31].
The value designation for single real estate is utilized usually for meeting urgent needs,
economic advantages, necessary compensations or evaluations (church temporalities,
etc.), with the Public sector playing the role of the buyer. Besides this, the interest that
the Public sector shows for the minimization of negative impact on the value of real
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Eleni Stamatiou
estate from various alternative solutions of major necessary works is obvious
[ZENTELIS, 2000: 31].
Depending on the regions of the country (but also on subregions of South Attica), price
scales have been institutionalized by zone, with corresponding activities. In relation to
the new urban land zone prices in force (from March 5, 2001), there is a general
increase from the previous ones (from January 1, 1998) (TABLE 5) .
In relation to the market prices of agricultural land among the districts of the country, a
differentiation has been noted between the actual and nominal price (by 20%), and a
lowering of prices between 1995 and 2000 (TABLE 6).
4. Land Structure Management
4.1 Management Bodies and Their Functional Administrative
Infrastructure
Unlike the institutionalized residential and urban land that is situated in a zoning area,
where the sole responsibility for territorial regulations belongs to the Ministry of the
Environment, Physical Planning and Public Works, the responsibilities for land not
situated in a zoning area outside urban borders are shared amongst a great number of
''related'' ministries, practiced in the form of general arrangements and not specific
planned interpositions [STAMATIOU, 2000]. The basic institutions that act on the
modulation of land as with its management and structure (within the limits of exercising
their operations and through their correspondent Managements) are mainly the
following:
-Ministry of the Environment, Physical Planning and Public Works, its scope being: the
politics of urban and land planning and of the environment, the control of its application
and the coordination of the parties involved with regard to the environment politics of
country facilities. The observance of the whole of international pacts and Community
orders for the protection and maintenance of biogenetic reserves, etc.
-Ministry of Culture, scope: the protection, delimitation, research, observation,
maintenance, maximization of potential, projection and management of cultural
environment, planning of athletic facilities, etc.
-Ministry of Agriculture, scope: Management and protection of the natural environment,
conservation of biogenetic reserves (fauna, flora), etc.
-Ministry of Merchant Marine, scope: the planning of ports and shipping, protection of
marine environment, etc.
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-Ministry of Transportation and Communications, scope: the planning and design of
networks and means of transport, the transport economy and transport politics, etc.
-Ministry of the Interior, Public Administration and Decentralization, scope: assistance in
carrying out studies and works which are the responsibility of Local authorities, the
planning of works (tourism, culture and substructure) and local development
programmes.
-Ministry of Economy, scope: general directions of economical planning, of development
politics and environment politics, etc.
-Ministry of Development, scope: politics concerning energy resources (space and area
layout of coherent facilities and infrastructures), the planning and management of
organized industrial and small business areas and parks. In addition, the planningdesign of tourism development and politics, the space and area layout of coherent
facilities and substructures, the promotion of alternative forms of tourism (eco-tourism,
rural tourism) [LAGOS, 1996].
Part of the responsibilities, but not sufficiently a part enough, has been assigned to the
lower administrative levels. The contribution of Local Self Government to decision
making concerning land and environment planning has increased, but is as yet not
satisfactory [BERIATOS, 2000].
4.2 Management Mechanisms
These Mechanisms function within the framework of broader planning and are:
! The institutional framework which governs the management of land structure and in
which community regulations are embodied up to a point, is comprised of legislation that
concerns: a) the production procedure, like areas of incentives for investments (mainly
in borderlands or former underdeveloped regions), industrial areas, tourist areas, areas
of agricultural and livestock activities, of forest management and fishery, b)basic
substructures, like energy, telecommunications, significant transport works, etc.,
c)indirect access to the place, e.g. archeological, historical protection, d)direct access to
the place, like urban, land and environmental planning, the studies of environmental
impacts or protection of the environment, etc., and the General Construction Code
(2000).
!
Means-tools: These include:
-The Special Regional Planning Studies (financed by the European Union through
Integrated Mediterranean Programmes, through Envireg, etc.), representing since 1988
the only type of systematic operations concerning spatial planning, refer to limited
regions being studied, usually small islands and coastal areas with intensive land use
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Eleni Stamatiou
directed developing areas (usually non-authorized), to areas of extensive property
segmentation, etc.[COCCOSSIS, MEXA, 1996].
-The most prevalent tool of planning (through Law 1337/1983) are the Residential
Control Zones, although its focus is on the regulation of residential development and
prediction of its future development. Its insufficiencies are pin-pointed to the lack of
broader regional scale planning framework for the prediction of directions pertaining to
the role and urban distribution of activities and the adequate approach to environmental
management matters [COCCOSSIS, MEXA, 1996]. The limitations of residential
conditions (pointed out by zoning) for non-zoning areas are against the interests of
owners for maximum reconstruction. As a result, the practices of Residential Control
Zones and thus the suggestions of Special Regional Planning Studies face strong social
pressure against their implementation.
-The Law on the Environment Protection (Law 1650/1986), a potential tool of land
planning in areas of particular environmental characteristics [COCCOSSIS, MEXA,
1996] anticipates the registering of protected and managed areas (national parks,
marine parks, aesthetic landscape, areas of outstanding ecological significance,
development areas or productive activities) and imposes the implementation of limits for
the development of activities inside the protection zone and the surrounding zone for the
enforcement of land use control. At the same time, it requires the evaluation of
environmental impacts on public or private works and activities, thus harmonizing Greek
legislation with Community Law. The law includes mechanisms of economic nature such
as land exchange, compensations, transfer of the Structuring Coefficient (analyzed in a
previous section), expropriations, and others such as: prohibition or inhibition of every
constructions activity during the planning phase of wholly or partly protected areas.
Many of these mechanisms remain inactive or have not been implemented, because the
corresponding Presidential Decrees have not yet been signed.
-Another tool can be the administrative mechanism of land distribution of tourist and
industrial facilities [COCCOSSIS, MEXA, 1996]. This is considered a reviewing
procedure for the acceptance of a suggested programme before the approval phase for
support by the relative laws pertaining to incentives.
! Know-how, which mainly serves natural planning (despite the lack of an integral
programme) and refers to:
- the implementation of modern element and information editing methods that are mainly
at the disposal of central administrative institutions, the dealing with time-consuming
bureaucratic procedures and the search for innovative and effective ways for monitoring
and control [PETA, 1998].
- the existence and training of specialized staff. The spatially arranged, important
science educational or research establishments (mainly in large cities like Athens,
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Thessaloniki, Patras, Volos, etc.) with relative research, know-how and technological
infrastructure contribute to a great extent to the management institutions [PETA, 1998].
! Support mechanisms: During the phase of administration, it is not unusual for
outsiders and ministries to cooperate (after assignment), just like the participation of
Management and Evaluation Consultants (in the case of the Ministry of National
Economy) in the preparation of Community Programmes and Initiatives.Important of
course is the contribution of Topic Centers being supervised by the aforementioned
ministries, like the HELLENIC MAPPING & CADASTRAL ORGANIZATION (HEMCA),
the Institution of Land Mapping and Sorting, the Greek Center of Biotopes-Wetlands,
etc, the majority being established after 1986 [STAMATIOU, 2000].
4.3 Infrastructure Provisions
! At the level of information-analysis, we mention the statistical data from the national
population census carried out by the National Statistical Service of Greece, as well as of
other public or private institutions. We should also mention the contribution of mapping
and aerial photography material (data taken from topographic and geographic maps,
etc.) provided by public institutions such as the Hellenic Mapping and Cadastral
Organization (HEMCO), the Hellenic Military Geographic Service (HMGS). Moreover,
the data and scientific results input and output network, which has been established with
the cooperation of the European Union and other international institutions, has
contributed to the enrichment and the modernization of the existing infrastructures,
especially over the last decades. Finally, as far as the Community Support Framework,
the Community Initiatives, the Cohesion Fund, the Public Investment Programme, etc.
are concerned, the use of the integrated information system of major government
bodies, such as the Ministry of National Economy, facilitates the supervision of
programmes, sub-programmes, measures and works implementation process at central
level, as well as data channeling at regional, prefectural, and local level. However, there
are still some deficiencies in the systemization of the computerization, population
census and connection to the international information networks at prefectural and local
level.
! As far as major government programmes or projects are concerned, the contribution
of intermediate third Greek or foreign –usually EU- factors acting as consultants or as
independent participants (private individuals, investment companies, building
companies, financial or legal services companies, etc.) is considered to be essential or
preferable for a part of the planning or implementation process.
The production and development of scientific knowledge of some Research Centers and
Higher Education Institutions and the contribution of scientific institutions that are related
to them, which possess data bases and data banks, at the level of statistical data and
mapping material, as well as the attempt of establishing Monitoring Centers, such as the
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Eleni Stamatiou
one of the Ministry of the Environment, Physical Planning and Public Works for the
monitoring of regional planning [PETA, 1998].
! Educational institutions and research centers play a significant consultative role,
while several non-governmental organizations (e.g., the Greek Society for the protection
of Environment and Cultural Heritage, the Greek department of WWF (World Wide Fund
For Nature), et al.) have developed contacts with the Ministry of the Environment,
Physical Planning and Public Works, the Ministry of Agriculture et al, thus enhancing
their participation in special works concerning natural and anthropogenic environment.
! The compilation of the National Cadastre started in 1995 within a 20-year scope for
completion. It concerns technical and legal record of the whole of real estates in the
country, with the following major objects: a) urban and suburban areas, b) rural areas of
different terrain types, c) afforestation and land distribution areas, d) settlement areas,
e) forest areas, f) areas of exceptional beauty, g) wetlands, h) areas with high housing
pressure, i) areas of “lost” public and private land.
! Until the enactment and implementation of the National Cadastre, any information
about the existing land property status would only come from collected data of
transcriptions and right-in-rem registrations at Registries of Mortgages, structured in
Courts of First Instance.
! A matter of utmost importance is the use of Geographical Information Systems for
the reliable demarcation, consolidation and utilization of Public and Communal land
property and forests, as well as private property.
5. Land Valuation and Taxation
5.1 Base for Taxation
The taxation of real estate in Greece, that was initially established by the Legislative
Decree of 03.03.1923 as capital tax, it is applied in accordance with the tax ability to pay
and utility special return (such utilities like location, green areas, etc.). In practical terms
however, it is used more so in terms of cash and less as a way of policy processes
concerning land. Some real estate taxes in force are suggestively mentioned, as follows
[ZENTELIS, 2000: 27]:
! Annual real estate income tax (Law 4045/1960). Subject to real estate income tax is
the owner, possessor, beneficial owner or the person with the right to use or live in the
building for the income procured by leasing, overleasing or requisition, or indirectly from
owner occupation dwelling or use of real estate (structured and nonstructured). In the
case of leasing or free granting of agricultural land, the type of land is also declared
(lowland, semi-highland, highland, watered or unwatered, or greenhouse).
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! Classification criteria in a corresponding real taxation scale, according to law, are:
the location, the place, the usage, the surface, the year of construction, the percentage
of joint ownership, the duration of renting during the relative fiscal year, etc. In the case
of joint ownership, joint usufruct, etc. of real estate, the amount that is declared to be
taxed is the amount of gross income that corresponds to the taxpayer, on the basis of
the joint ownership percentage.
! Tax on real estate partition, exchange and transfer (Law 1587/1950) imposed on the
market price or "the guiding value" (Law 1249/1982, Law 1273/1984).In Greece, Law
1249/1982 has laid the foundations of a "value objective definition system" of taxable
real estate value for urban areas, which has already extended to non-urban areas
(Official Gazette 1328/1998). In this conventional valuation system, which is not the
result of a systematic analysis, the tax base is correct to its extent only. A similar tax is
imposed on the transfer of other property rights such as servitude, usufruct, bare
ownership, inheritance, gift (Law 118/1973), parental benefit (Law 1329/1983),
unification of parcels of land (Legislative Law 987/1971), etc.
! The large property tax (Law 2459/1991) is an annual tax on the overall taxable real
estate value of natural or legal persons, with a non-taxable determined according to the
circumstances.
! The real estate fee (Law 2130/1993) is an annual tax on the taxable value and is
paid to the Regional and Local Authorities.
!
Assessment tax on the property of companies (Law 1249/1982).
! Value Added Tax (VAT) (Law 1642/1986, the implementation of which has been
suspended as far as real estate is concerned), for the taxation of real estate
appreciation, especially in the case of property transfer.
! Incidental taxes imposed on value of the real estate value or on its rent for incidental
needs.
5.2 Land Valuation for Tax Purposes
In Greece, the real estate value used for taxation, expropriation or selling off purposes is
assessed through different valuation and pricing methods resulting in contradictions and
discrepancies. More specifically, the value of a real estate can be assessed according to
the Ministry of Finance ‘‘value objective definition system’’ (for the majority of Greece's
regions) or the Public Finance Department, the Association of Sworn Valuers, National
Land Association, and the Technical Chamber of Greece valuations. Other cases of
land valuation are those related to the knowledge of prices and they are now becoming
the object of relevant regulation, such as the legal status of real estate rental and
ownership-occupancy (Law 1703/1987), of public spaces rental (Art. 970 of the Civil
Code), of the protection of State-owned property (Law 4266/1929), etc. Moreover, the
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Eleni Stamatiou
Administrative Courts are not obliged to determine prices that are different form the
above-mentioned. We should also mention that purchase prices, prices determined by
the competent tax authorities, as well as mortgage and expropriation prices, are
different to sales prices. Therefore, there are different overvalued or undervalued prices,
which are indicative of the real value, differing according to the location and the type of
the real estate [ZENTELIS, 2000: 26].
6. Regional Development - Planning and Projecting
Perspectives
6.1 Regional Policy
The directions of regional policy, during the last two decades (Law 1622/1986, Law
2503/1997 for Regions6, et al) aimed at the enhancement of local administration and
decentralization, under the aspect of alignment to the legal status of the European
Union, after Greece’s full admission in 1981. At the same time, there was an intention
for a new-type policy on spatial planning, conformed to the aforementioned policies
(urban-land planning and development, environment) [BERIATOS, 2000]. By that time,
the standard view was that regional and sectorial development consist the dominant line
in scheduling and planning, which overlaps natural planning without room for feedback
[LAGOS, 1996].
6.2 Programmes of Regional Development
The Public Investment Programme, jurisdiction of the Ministry of Economy, provides,
among other things, regional projects, which include constructions, surveys etc., on
regional, provincial and municipal level (Law 2503/1997), and are proposed with
Regional Council decisions. Decentralization of the Programme projects began in 1998,
from central government (Ministries) towards Regions, which have the authority to
realize Regional Programmes. Regional development programmes through Community
Programmes and EU policies, include, first in order (1986), the Integrated
Mediterranean Programmes (IMP), which aimed, among other things, at the
6
Regions were instituted not as a Local Government degree, but rather as a convergence level between state
and local government, ruled by Law 1622/1986 (Art. 61-69). Regional government agencies bear general
responsibility on cases pertaining to their jurisdiction, while central institutions are responsible for the basic
guidelines, the coordination and the control of the regional agencies (Article 101 of the Const.), as specified by
legislation. By Law 2503/1997, Regions were instituted not only as scheduled for decentralization, but also as
indeed decentralized state government units, with distinct organizational structure, specific jurisdictions and
their own staff and budget. From the total regional area, the largest surface is that of Central Macedonia
(coming second in population, that is about half -49%- the population of Attiki). The majority of Organizations
of Local Self Government are in the Central Macedonia region (about 13% of total, also including most
Municipalities, about 14% of total), while most Communities are in Attiki (about 25% of total) (TABLE 7).
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development of nation-wide agricultural areas, with the exception of Attica province and
the urban area of Thessaloniki. Within the IMPs framework, the first series of Special
Territorial Studies (for the islands Carpathos, Syros, Samos, Lesvos, et al) was
presented. Second in order were the National Operational Programmes of the
Community Support Framework (CSF), the Community Incentives, the Regional
Operational Programmes (PEP), the Cohesion Fund etc., which have funded projects of
regional significance, pertaining to local agencies jurisdiction, and projects whose
design and supervision is performed on a central level.
6.3 Regional Planning
In Greece, regional planning is set forth in national, regional, local and development
programmes. The Ministry of National Economy develops the national five-year
programmes that are approved by Parliament, and approves the regional programmes,
designed by the General Secretariats of the country Regions. This procedure is based
on the development legislation that offers motives for investment in country Regions, as
well as on the development legislation for first level and second level local government
agencies (for prefectures, municipalities and communities) and for administrative
decentralization. The implementation of this law has abated to a point, because in reality
there are plans of regional development being realized that are subsumed in the
financing mechanisms of the European Union. Spatial programming - planning on a
regional level concerns ‘‘zoning regulations’’ of major regional - national strategic
significance for the development of productive activities (such as e.g. motivation zones,
Industrial Regions, tourism zones, zones of live stock and agricultural activities, forest
administration, fishery, etc.) [LAGOS, 1996] the protection and promotion of cultural
inheritance and the hierarchy of transport networks, residential networks etc., within the
jurisdiction of the Ministry of the Environment, Physical Planning and Public Works.
6.4 General Urban and Settlements Plans
In urban planning, that still follows the clauses of Law 1337/1983, the designation of
land use, referring to the usage plans of housing areas (Master Plan, General Land Use
Plan, Urban Planning Study, Land Use Plan), aims at the presentation and topological
incorporation of urban planning operations. The Ministry of the Environment, Physical
Planning and Public Works is the one which has competence over this topic.
The General Land Use Plan represents the general motion of urban planning
organization (by urban planning sections/neighbourhoods) the extension of plan or
housing developments that are to be incorporated, after the evaluation of residential
needs and predicted impact of urban planning regulations on natural and housing
environment. The General Land Use Plan must cover all regions with urban planning (or
those for whom an urban plan is prepared) of at least one municipality. It is comprised of
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Eleni Stamatiou
maps, designs, diagrams and text so as to include: a) the boundaries of every section of
urban planning, b) the subdivision of the region into densely or sparsely structured
zones c) the general evaluation of needs in communal spaces, welfare services and
public interpositions in the housing sector, d) the general proposal of urban planning
organization of urban planning sections in relation to the aforementioned needs, [TZIKA
2000: 94] pertaining to: land uses, in centres, in the main traffic network, density, the
average built-up surface ratio7 and random construction and use inhibitions, the
choosing of development methods with the designation of respective zones and the
evaluation of the predicted implications on the environment, Specific Aid Zones, regions
that are by priority granted housing loans, aids and finally,resources for the
implementation of urban planning study. Likewise, the General Land Use Plan could
designate the spatial arrangement of various uses (industrial, small industry or other
special uses in the Residential Control Zone, concerning the city or the agglomeration).
The land uses of the General Land Use Plan are designated (according to the general
urban planning operation of the region) in 9 categories (immiscible residence, general
residence, central city operations, nuisance industry-small industry, no nuisance
industry-small industry, wholesale, tourism-recreation, free spaces-urban green spaces,
social facilities). It is further divided (in accordance to the special urban planning
operation) into 27 subcategories. Especially in the larger areas of Athens and
Thessaloniki, other uses are allowed, as long as they are deemed necessary for the
realization of the Master Plan and the environment protection programmes [ΤΖΙΚΑ,
2000: 121).
The Planning Study concerns all or part of the areas covered by the Development Plan
and [ΤΖΙΚΑ, 2000: 97-98] contains: a) the final borders of the Development Plan zones,
b) all relevant uses of land, restrictions, prohibitions and obligations, c) all relevant
diagrams of infrastructure networks, d) the public use and common use spaces, as well
as the serviced spaces, e) the type of coverage and building regulations and
restrictions, f) the regulations on building materials and the way buildings should be
constructed in order to be aesthetic, etc. g) the approximate amount of land resulting
from land contributions and the proposal on its distribution to public use and common
use works, h) the administrative and building measures to be taken and the works to be
implemented, together with information about their cost and financing, i) the different
stages of their enforcement and their ranking, j) the competent institutions and their
ways of intervention, and k) eventual special measures and regulations imposed for
planning reasons. Planning studies concerning land use, as well as studies on the
development and upgrading of some town areas, are already carried out in Greece.
The Development Plan (DP) specifies in detail, on agglomeration or agglomeration
sector or zone or specific point level and at every specific location, the use of land and
7
The built surface ratio is the number that when multiplied by the area of the building ground returns the
square meters of land of primary use that can be built, in other words the area of the building [ΤΖΙΚΑ, 2000:
161].
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its intensity, the regulations and restrictions governing it, the common use spaces, the
eventual special continuous use and, generally, all matters provided by the dispositions
of the 1923 legislative decree ‘‘on town plans’’ and the 947/1979 Law ‘‘on
agglomerations’’. This is followed by the drawing up of the application act which
concerns the Urban Planning Study at its entirety or a part of it by specifying the parcels
deduced from every property as a land contribution or those transformed into money
contribution, as well as the settlement and the unification of parcels of land, etc.
General Development Plans should be harmonized with Master Plans and the
Programme on the Protection of the Environment, while Master Plans should be
harmonized with Regional Plans.
The Master Plan is the set of regulations on the planning of interventions and the control
of the development of an urban area as far as land uses and their intensity,
infrastructure networks and important public works are concerned. It is accompanied by
proposals about the way of their application, the planning of their implementation, the
assessment of their cost, etc. The Master Plans of Athens and Thessaloniki area, the
only ones in effect, were adopted by the Greek Parliament as ordinary laws, as they
concern very important metropolitan areas facing intense problems [ΤΖΙΚΑ, 2000: 83].
For the application and the monitoring of application of the Master Plans, the Greek
government founded the Athens Master Plan Institution (Law 1515/1985) and the
Thessaloniki Master Plan Institution respectively, which are competent for the approval
of the General Development Plan of their area, for the specification of a Housing Control
Area, an Active Planning Area, an Urban Replotting Area (Urban Redistributing Area)8,
etc.
The new housing Law 2508/1997 on "town and agglomeration sustainable
development", which is a continuation of Law 1337/1983, concerns planning and
development at their entirety. The systemization of the existing ways of town planning
concerns: a) planning based on administrative building regulations (administrative town
planning), b) intervention based on the procedure of redevelopment/refurbishment,
active town planning, and urban replotting (interventionist planning), c) the planning of
Areas of Specially Regulated Town Planning, that is land property belonging to natural
and legal person governed by public or private law that can be planned for the service of
some land use categories (Art. 24) [ΤΖΙΚΑ, 2000: 216], d) the intervention, through
planning or economic stimulation of redeveloped areas, of Special Stimulation Areas,
Special Reinforcement Areas, etc.Its main points are the following: a) the drawing up of
Master Plans and Programmes for the Protection of the Environment for some urban
areas which are important on infra-regional level (Patras, Heraklio, Kriti, Larissa, Volos,
8
The provisions on urban re-plotting have not yet been implemented. They aim at the redevelopment of
unbuilt areas but are very interventionist. The proposals on the development of areas created by the extension
of urban areas though urban replotting, which have been submitted to the General Development Plans and the
Urban Planning Studies of the Organization for Town Restructuring, have not yet been approved since the
Council of State considered this institution as too interventionist. [ΤΖΙΚΑ, 2000: 148].
Discussion Paper Series, 2002, 8(7)
170
Eleni Stamatiou
Kavala and Ioannina), b) the extension of the General Development Plan to the space
surrounding urban areas, but also the Programme for the Regional Planning of Open
Cities9 for housing estates of non-urban areas [ΤΖΙΚΑ, 2000: 219-220].
6.5 Land Planning Projects and Urban Building
Greek legislation provides Regional Planning and Regional Programme as means for
land planning; for urban planning it provides the aforementioned Master Plans, General
Urban Plans, Urban Planning Studies and Development Plans. Spatial programme
consists of a body of documentation and designs, which specify the required
approaches for the application of the corresponding spatial plan, the realization and
funding stages of these approaches, and the institutional, financial and administrative
measures taken into account for this purpose. Spatial plan specifies [ΤΖΙΚΑ, 2000: 75]:
a) the population’s distribution and structure in relation to the activity per productive
sector, b) the land-use distribution and structure per operation and productive sector, c)
the national, transport etc. networks of social, economic and administrative
infrastructure, d) the state parks, green spaces and all other significant areas requiring
protection, e) the general framework, the terms and limitations in order to consolidate
environmental protection. Spatial plans elaboration concerns the entire country (national
spatial plan) or a specific region (regional spatial plan) or any sector of production,
operation or infrastructure of an area, e.g., sensitive ecosystems, such as small islands
(specific spatial plan). Elaboration, completion, modification and revision of the national
spatial plan come within the jurisdiction of the Ministry of Economy [ΤΖΙΚΑ, 2000: 75]
Although many years have elapsed since the establishment of the Constitution and the
law about spatial planning (Law 360/1976 “About Spatial Planning and Environment”),
the relevant provisions actually failed to apply and remain inactive. Thus, the State is
now aiming at the correct enforcement of the Constitution and the Community
legislation, which has been incorporated in the national law.
The evolving, and under constant formation, urban and spatial planning legislation and
policy depend on the new decentralized administrative structure, based on the
jurisdictions provided by the relevant institutional framework (Law 2218/1994 and
2240/1994), and the Community programmes in national, regional and local levels. The
application of the new Law 2742/1999 “On spatial planning and sustainable
development” is expected to present a significant contribution to the treatment of
pertinacious and serious spatial issues.
9
"Open City" is a set of neighboring housing estates of non-urban areas, each of which has a population of up
to 2000 inhabitants, according to the last census [ΤΖΙΚΑ, 2000: 225].
UNIVERSITY OF THESSALY, Department of Planning and Regional Development
Land Policy: Overview of Greek Land Property and Relations
171
7. Conclusion
The Historic Review of the Formation of Land Tenure and Land Relations in the Modern
Greek State from its Establishment to today presented a picture of the land tenure
status particularities and mentioned some of the space adjustment difficulties which are
linked to special socioeconomic factors.
In Greece, small property is the representative unit of urban (and rural) space, and
regarding the legal status of ownership, we find that the greatest part of tillable land
belongs to individuals and that the greatest average extension per plot is located in
Thessaly, and that the highest (urban and agricultural) land market prices as well as the
highest increases are more predominent in the region of Attiki.
Land acquisition for the management of protected areas by public authorities or nongovernment organizations is a rare phenomenon and the recent institution of a Cadastre
has cleared some of the doubt and confusion that reigned until recently about land
property boundaries and which constituted a very common phenomenon that begged for
a solution. Although benefits resulted from Greece’s membership in the European
Union, there is still a need for a less artificial and more systematic and reliable land
valuation method which relies on specific criteria and promises to meet the growing
demands of the booming real estate sector.
Land policy is evolving and experiencing constant change especially with regards to
urban and spatial planning legislation and policy which have recently been decentralized
and come under the authority of a new administrative structure based on local
jurisdictions providing the relevant institutional framework working in coordination with
Community principles (focused on sustainable development) in national, regional and
local levels.
This Decentralization effort to the lower administrative levels with it’s associated power
transfer of decision making to local authorities for land and environment planning has
occurred for part of these responsibilities, but remains insufficient. With better control
and some additional experience from the newfound responsibility local authorities are
promising better results as their participation to decision making increases.
Bibliography
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Volos (in Greek).
COCCOSSIS H., MEXA A. (1996), National Report of Greece, Workshop on policies on
sustainable Development of Mediterranean coastal areas, Santorini Island Greece, 22-27 April,
Ministry of the Environment, Planning and Public Works, Athens.
EKDOTIKI ATHINON (1994), World Geography, Β΄, v. 8Α΄ (in Greek).
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Eleni Stamatiou
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ROCOS D., (1981), Cadastre and Redistribution of Land - Land Policy, vol. Α΄, Mavrommatis,
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STAMATIOU E. (1997), Environmental Management. Policies for the protection of the Greek
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Athens (in Greek).
STAMATIOU E. (2000), Research on Greek development related Ministries’ involvement in space
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ΖENTELIS P. (2000) Reαl Estate, Papasotiriou, Athens (in Greek).
UNIVERSITY OF THESSALY, Department of Planning and Regional Development
Land Policy: Overview of Greek Land Property and Relations
173
Table 1.Distribution of forest areas by property type Areas in stremmas (1000m2)
Type of property
Area
%
State properties
16440050
65.5
Communal properties
3015270
12.0
Monastery properties
1099460
4.4
Charitable foundations properties
112250
0.4
Multiple owners property
2458450
9.7
Single owner property
1998700
8.0
Total of forest areas
25124180 100.0
SOURCE: ESYE (GREEK NATIONAL STATISTICAL SERVICE)
Table 2. Holdings and areas according to their legal ownership Areas in stremmas
(1000m2)
Administrative
Holdings of
Regions of
physical persons
Greece
Holdings of legal entities
of
of State or
Corporations Other type
Cooperatives Legal
Entities of
Public Law
Hol/gs Areas
Hol/gs Areas Hol/gs Areas Hol/gs Areas Hol/gs Areas Hol/gs Areas
Attiki
29922
612334
38 2804
1
59
5 1896
18
180
14 669
Central Greece
81463 3568335
29 2141
_
_
4 937
13
425
12 779
Eastern
70426 3557173
15 3404
1
15
2
61
7 2606
5 722
Macedonia and
Thraki
Central
134186 6155308
47 16427
4 1556
6 6584
17 6700
20 1587
Macedonia
Western
35102 1984509
8 7083
1 4000
3 2039
1
12
3 1032
Macedonia
Thessalia
90013 4115824
10 13073
2 12500
1
16
3
326
4 231
Ipiros
48854 1169557
16 1121
_
_
1
3
11
140
4 978
Ionian Islands
29549
690184
15 809
_
_
_
_
5
658
10 151
Western
91093 2744859
19 2235
_
_
1
10
4
195
14 2030
Greece
Peloponisos
106495 3890419
27 1641
_
_
1
1
8
811
18 829
Northern
33499 1294028
9 476
_
_
1
8
1
0
7 468
Aegean Islands
Southern
23212
868592
9 825
_
_
2 190
4
21
3 614
Aegean Islands
Kriti
87548 2801382
19 9524
_
_
1 448
5
441
13 8635
Greece, total
861362 33452504
261 61653
9 18130
28 12193
97 12515
127 18725
Total
SOURCE: ESYE (GREEK NATIONAL STATISTICAL SERVICE, 2001a,b)
Discussion Paper Series, 2002, 8(7)
174
Eleni Stamatiou
Table 3. Holdings and areas by size of total cultivated area Areas in stremmas
(1000m2)
Size of holdings
Holdings of legal entity
Total
of
of State or Legal
Other type
Cooperatives Entities of
Corporations
Public Law
Hol/gs Areas Hol/gs Areas Hol/gs
Areas Hol/gs Areas Hol/gs Areas
Greece, total
261 61653
9 18130
28 12193
97 12515
127 18725
Without cultivated land
38
_
_
_
1
_
36
_
1
_
Up to 4.9 stremmas
29
80
1
4
2
4
7
10
19
62
5 - 9.9
30 207
_
_
3
20
9
59
18 128
10 - 19.9
34 444
1
15
3
36
15 195
15 198
20 - 29.9
22 502
_
_
2
48
3
74
17 380
30 - 49.9
24 847
_
_
1
33
5 170
18 644
50 - 99.9
15 986
2
134
1
78
4 290
8 484
100 - 199.9
21 2748
_
_
5
736
6 769
10 1243
200+ stremmas
48 55749
5 17977
10 11238
12 10948
21 15586
SOURCE: ESYE (GREEK NATIONAL STATISTICAL SERVICE, 2001a,b)
Table 4. Distribution of the total agricultural land of holdings by tenure status Average
area per land plot (including uncultivated pastures) / Census 1991 Areas in stremmas
(1000m2)
Administrative
Regions
of Greece
Attiki
Central Greece
Eastern
Macedonia and
Thraki
Central
Macedonia
Western
Macedonia
Thessalia
Ipiros
Ionian Islands
Western Greece
Peloponisos
Northern
Aegean Islands
Southern
Aegean Islands
Kriti
Greece, total
Holdings Areas
with
cultivated
land
29179 647417
80602 3888547
69392 3603942
132394 6178711
34417 2005328
87761
48237
29554
90793
106276
33402
4201792
1280000
816661
2888994
4238336
1650914
23035 1351993
87424 4034019
852466 36786654
Average
area
per
land plot
Tenure status of the total agricultural land
Other type
of tenure status
Hol/gs Areas
Hol/gs Areas Hol/gs Areas Hol/gs Areas
5.0 28433 574458 1534 60606
183 4051
341
8302
7.9 79307 3183558 11084 668895
526 19381
625 16713
6.6 65169 2500406 23594 1062796
695 17436 1365 23304
Private
Rented
7.1 128303 3904083 43740 2197575
6.9 33318 1246611
11.4 86103
6.2 47466
5.0 29122
9.1 88417
6.7 104832
6.8 32677
Share farming
1102 29476
3439
47577
8691 739148
119
5551
597
14018
3171856 21874 988604
1001797 6702 259880
725679 1505 67334
2404358 11936 450223
3712339 7987 452248
1184711 4245 430577
546
240
522
877
1513
547
28787
6219
9309
25059
33414
18190
296
439
388
548
1789
655
12545
12104
14339
9354
40335
17436
282
7704
672
24029
9.1 22381 1051891
3272 268369
5.8 86287 3487289 4636 492980
7.2 831815 28149036 150800 8139335
1957 34904
563 18846
9109 239481 11717 258902
SOURCE: ESYE (GREEK NATIONAL STATISTICAL SERVICE, 2001a,b)
UNIVERSITY OF THESSALY, Department of Planning and Regional Development
Land Policy: Overview of Greek Land Property and Relations
175
Table 5. Average zone prices of urban land per m2 in the Greek regions, $
Administrative
Regions
Previous average zone price*
(since 01st January 1998)
New average zone price**
(since 05th March 2001)
% Change
Attiki
Α) Athens-Piraeus
Ι) Prefectural District of Athens
IΙ) Prefectural District of Piraeus
B) Eastern Attiki
C) Western Attiki
Central Greece
Eastern Macedonia and Thraki
Central Macedonia
Western Macedonia
Thessalia
Ipiros
Ionian Islands
Western Greece
Peloponisos
Northern Aegean Islands
Southern Aegean Islands
Criti
926.81
768.23
866.90
518.03
563.84
581.46
690.70
525.08
658.99
553.27
888.05
637.84
676.61
828.14
884.52
778.80
1029.38
872.91
936.05
480.38
461.16
496.85
614.88
329.40
510.57
469.40
848.21
527.04
485.87
606.65
625.86
485.87
42.60%
45.90%
38.60%
-19.00%
5.00%
9.70%
14.35%
-19.5%
0.50%
8.90%
22.65%
6.10%
-7.80%
-6.00%
-9.20%
-19.90%
*Equivalent on 01st January 1998, where 1 GDR =0.003524 USD or 1USD=283.760 GDR
**Equivalent on 05th March 2001, where 1 GDR =0.002745 USD or 1USD=364.322GDR
SOURCE: (New analysis combining data from) ESYE (GREEK NATIONAL STATISTICAL
SERVICE)
Table 6. Land Market Prices (Agricultural) by hectars in thousands of US$
Administrative regions
of Greece
Attiki
Central Greece
Eastern Macedonia and Thraki
Central Macedonia
Western Macedonia
Thessalia
Ipiros
Ionian Islands
Western Greece
Peloponisos
Northern Aegean Islands
Southern Aegean Islands
Criti
1990*
Real
44084
28054
17854
16154
17007
17007
15301
16154
22954
16154
19554
20407
15301
1995**
Nominal
35262
22441
14281
12921
13607
13607
12241
12921
18361
12921
15641
16326
12241
Real
60602
38566
24541
22205
23373
23373
21037
22205
31553
22205
26881
28049
21037
2000***
Nominal
48482
30852
19634
17764
18697
18697
16831
17764
25243
17764
21503
22441
16831
Real
48851
31086
19782
17897
18841
18841
16956
17897
25434
17897
21667
22608
16958
Nominal
39081
24869
15826
14316
15074
15074
13565
14317
20347
14317
17335
18086
13565
*Equivalent of 07.07.1990, where 1 GDR =0.006182 USD or 1USD=161.750 GDR
**Equivalent of 07.07.1995, where 1 GDR =0.002826 USD or 1USD=225.190 GDR
***Equivalent of 07.07.2000, where 1 GDR =0.002826 USD or 1 USD=353.829 GDR
SOURCE: (New analysis combining partial data from) ESYE (GREEK NATIONAL STATISTICAL
SERVICE)
Discussion Paper Series, 2002, 8(7)
176
Eleni Stamatiou
Table 7. Structure of the Greek Regions
Region
Eastern Macedonia
and Thraki
Central Macedonia
Western Macedonia
Ipiros
Thessalia
Ionian Islands
Western Greece
Central Greece
Attiki
Peloponisos
Northern Aegean
Islands
Southern Aegean
Islands
Kriti
Mount Athos**
Country, total
Capital
Area
(m2)
Population
2001*
Number of Organizations of
Local Self- Government
Municipalities
Communes
Total
47
8
55
Komotini
14155
604254
Thessaloniki
Kozani
Ioannina
Larisa
Kerkyra
Patra
Lamia
Athens
Tripoli
Mitilini
18813
9451
9203
13929
2307
11337
15479
3808
15549
3836
1862833
302750
352420
754893
214274
742415
608655
3764348
632958
200066
126
44
57
93
33
72
89
91
100
35
8
17
19
11
6
2
6
33
7
1
134
61
76
104
39
74
95
124
107
36
Ermoupoli
4859
298745
45
13
58
Heraklio
8336
336
601158
68
2
70
10939771
900
133
1033
*Temporary results of the latest census on March 18th 2001
**Autonomous monastic district occupying the tip of the easternmost prong of the Chalcidice
Peninsula, NE Greece.
SOURCE: Ministry of the Interior, Public Administration and Decentralization, and
ESYE (GREEK NATIONAL STATISTICAL SERVICE)
UNIVERSITY OF THESSALY, Department of Planning and Regional Development