The “Digital Land Bank” competition is anticipated to be announced shortly, aiming to realize the project 11 years after it was first established under Law 4178/13. This initiative will include the design, implementation, creation, and management of an information system that will facilitate the regulated trading of building rights transfer titles.
The project will introduce a digital platform enabling the anonymous purchase and sale of building rights at a set value. It will function as a compensation mechanism for qualifying holders without impacting the public budget, while also creating a “green fund” to finance environmentally focused projects.
Buyers and sellers of building rights will register their properties on the Digital Land Bank platform, allowing electronic building rights transfers without direct contact between parties, reducing bureaucracy by removing public agency involvement.
The Technical Chamber of Greece (TEE) will oversee the competition and manage the platform. If there are no objections, the project’s implementation period will be a maximum of 12 months from contract signing, so the platform may be delivered by late 2025.
In any case, the Land Bank’s “desks” could not open, even if it were ready, until the Special Building Reception Zones (SYZ) required by the Council of State are defined. This task, underway and due for completion in 2025, will limit the building rights in these areas to a 10% increase over current levels.
The Ministry of Finance approved the project’s inclusion in the Recovery and Resilience Fund a year ago, with a budget of €18.5 million (including VAT). This includes an estimated contract value of €13.4 million, with an optional extension for maintenance and service expansion.
The Digital Land Bank will act as a marketplace where holders can sell building rights, while those in need of them can acquire rights at a predetermined price.
Eligible Sellers
– Owners of heritage or restricted properties (historical sites, monuments, etc.) that have building restrictions or prohibitions. This category includes those with older, unused building rights transfer titles (estimated at about 3 million sq. m.) as well as those without titles; only about 10% of heritage property owners possess these titles.
– Owners of properties reserved for public spaces by expropriation, who are due compensation, though municipalities may lack the required funding.
– Properties subject to other building restrictions.
Eligible Buyers
– Owners of unauthorized buildings: The Digital Land Bank will allow building rights transfer as a tool for regularizing Category 5 properties, previously exempt from demolition for 30 years with the condition of acquiring building rights. Compensation options for heritage property owners under the rights transfer mechanism have been inactive since 2007.
– Strategic investors needing additional building rights for projects under Special Spatial Development Plans for Strategic Investments (ESHASE) and public property projects (ESHADA).
– Other cases, including properties with minor size deviations or existing properties within SYZ zones.
Heritage Property Owners
Essentially, funds from those purchasing building rights titles for projects within SYZ zones will be allocated to heritage property owners and other sellers. Additionally, each building rights transfer conducted through the Digital Land Bank will incur a 5% fee, directed into a Green Fund account for environmental and urban development projects, exclusively benefiting the municipality where the development is located.
