According to recent case law from the Council of State, a property can legally be reclassified as a buildable area after its designation as a public utility area is removed.
In Decision No. 276/2025, the Council of State ruled that lifting urban expropriation and reclassifying a property from an area designated for school construction to a buildable area is lawful.
The legal criteria supporting such a reclassification include:
- The property’s morphological characteristics,
- Urban planning needs, with priority given to the necessity of public and communal spaces,
- The urban planning framework of the wider area, and
- Guidelines and constraints set by spatial planning frameworks, the General Urban Plan, or other relevant plans.
However, urban expropriation may be reinstated if both of the following conditions are met:
- A significant urban planning need is identified, and
- Authorities demonstrate both the intention and ability to immediately compensate affected property owners.
Regarding building regulations for the reclassified area, the Council of State determined that the 60% coverage ratio under Article 12(1) of the New Building Regulation (NOK) applies, replacing the previous 70% ratio under Article 8(1) of Law 1577/1985 (General Building Regulation – GOK). This change favors environmental sustainability and improves living conditions for residents.
This ruling is significant as it sets a legal precedent for developing and utilizing properties that were expropriated for public purposes but never actually used for such purposes.
