Greece’s tourism sector is entering a new era. The new Special Spatial Planning Framework for Tourism, introduced by the Greek government, establishes a new set of rules governing the spatial planning, development and construction of tourism investments, with particular emphasis on the country’s islands. After years of regulatory uncertainty, the new framework seeks to establish rules that link tourism development with the carrying capacity of each destination, available natural resources and the specific characteristics of each area. For investors, this change is particularly significant: selecting a property is no longer enough. Proper investment assessment requires an in-depth understanding of the spatial and urban planning framework, development potential and restrictions applicable to each location.
The Greek islands are now divided into new categories
One of the most significant changes is the new categorisation of the islands, which is now largely based on their geographical area.The islands are divided into three main groups:
Group I: islands larger than 250 km².
Group II: islands between 20 and 250 km².
Group III: islands smaller than 20 km².
This new approach introduces different rules for tourism development in each category. Group II includes a number of highly popular destinations such as Mykonos, Santorini, Paros, Milos, Serifos, Sifnos and Tinos. Under the new framework, new hotels in these areas may be rated three, four or five stars, with a maximum capacity of 100 beds. Similar restrictions apply to smaller islands, while on very small islands, covering less than 1,000 stremmas, development is limited to low-impact tourism activities and specific permitted uses. The message is clear: development is not being halted, but it is becoming more targeted and increasingly dependent on the characteristics and actual development potential of each property.
Greater control over the capacity of new tourism developments
The new rules governing the capacity of tourism developments are of particular interest to investors. In island areas classified as Controlled Development Areas, up to 100 beds are permitted for the first 16 stremmas, while an additional six beds per stremma may be added for the remaining land, subject to the applicable maximum limit. The maximum capacity reaches 350 beds, meaning that a substantial land area is required to develop a tourism unit of this scale. For an investor, this translates into one very clear requirement: a property must be assessed before the investment decision is made, not after. The true investment value of a plot of land is determined not only by its location or size, but by what can actually be developed on it.
New restrictions on swimming pools and water resources
The new framework places particular emphasis on water resource management, especially on the Aegean islands. The use of seawater in swimming pools at tourism establishments is encouraged, while restrictions on the licensing of new swimming pools are also introduced, depending on the characteristics and water needs of each destination. At the same time, the framework considers separating a hotel’s star rating from the mandatory provision of a swimming pool on the Aegean islands. These provisions demonstrate that sustainability is no longer treated as a secondary consideration in tourism investment, but as a fundamental element of development planning.
New restrictions on short-term rentals
Another important provision concerns short-term rentals. The new framework provides for the promotion of legislation that would suspend the issuance of new Property Registry Numbers (AMA) for newly built residential properties on the islands. The measure will require separate legislation in order to come into force. Nevertheless, it clearly indicates the direction of government policy: the uncontrolled expansion of tourism accommodation and short-term rentals is increasingly being brought under greater regulatory control.
Carrying capacity becomes a key factor
Perhaps the most important change for investment planning is the increased emphasis on the carrying capacity of tourism destinations. In specific areas, Carrying Capacity Assessment Reports will be required for new tourism developments, depending on their capacity. If the assessment indicates that critical sustainability indicators have been exceeded, an investment may face significant restrictions or may even be prevented from receiving the necessary approvals. For investors, therefore, the question is no longer simply “Where can I buy?”, but rather: “What can I actually develop on this property, and under what conditions?”
What does this mean for investors?
The new Special Spatial Planning Framework creates a more demanding environment for the development of tourism projects. The market continues to offer significant opportunities, particularly across the Greek islands and established tourism destinations. However, the success of an investment will increasingly depend on preliminary technical, spatial and urban planning assessment. A property that appears attractive from an investment perspective may, under the new regulatory framework, have a different actual development capacity or different development potential than initially anticipated. This makes an integrated approach essential: spatial planning assessment, urban planning evaluation, development potential, permitted land uses, environmental restrictions, the feasibility of developing a tourism facility and an overall assessment of the investment opportunity.
Domisi Development: expertise in investment planning and development
In this new environment, Domisi Development provides the expertise required to support investors and property owners seeking to capitalise on opportunities in the Greek market with greater certainty and strategic planning. With expertise in property development and asset utilisation, planning studies and permitting, spatial and urban planning, as well as the design and implementation of investment and tourism projects, Domisi Development approaches each property not simply as a land acquisition, but as a complete investment project. The new reality requires a combination of technical expertise, spatial and urban planning knowledge and investment strategy. Because today, more than ever, the value of a tourism investment lies not only in where you invest, but in how effectively you have planned what you can create there. Domisi Development can support investors at precisely this stage, from property assessment and the evaluation of development potential to project design, the required studies and permits, and the implementation of the investment project. The new Spatial Planning Framework is changing the rules. The right preparation is what turns those new rules into an investment opportunity.
