Mykonos’ New Urban Planning Framework Sparks Reactions

The recent presentation of a new urban planning framework for Mykonos has drawn reactions from local residents and investors, as it introduces significant changes to the island’s development landscape.

While many major five-star investments are awaiting approval, the new regulations raise concerns about their future feasibility.

The most notable change is an increase in the minimum plot size required for residential properties, from 4 to 8 stremma (from 1 acre to 2 acres).

Similarly, for tourism developments, the minimum plot size has been raised from 10 to 30 stremma (approximately 2.5 to 7.4 acres).

Additionally, the floor area ratio (FAR) for tourism accommodations has been reduced from 0.15 to 0.12, limiting the permitted number of hotel rooms that can be constructed in designated tourist zones to 150, and to 50 in other areas.

According to reports, the changes bring substantial limitations for large-scale tourism investments on Mykonos. In accordance with the framework, tourist zones on the island will only be activated once essential infrastructure projects are completed within a five-year timeline.

The infrastructure projects include:

– Water supply enhancements, including desalination plants and distribution networks.
– A ban on swimming pools in new permits due to water shortages, effective until new desalination plants are operational.
– Improvements to wastewater and waste management systems.
– Road construction, parking facilities, and electricity network upgrades.

Investors have raised concerns, particularly about the government’s decision to require the completion of infrastructure projects before proceeding with large-scale developments. This five-year timeline delays plans and adds additional burdens, especially on an island already facing obstacles to development.

The framework also proposes measures to regulate vehicle fleets for businesses, limit the number of vehicles allowed to disembark at the island’s port, and restrict vehicles used for transfer services. Additionally, it proposes a ban on issuing new building permits for short-term rental properties.

According to reports, the new framework may cause delays to investments already in progress. Current large-scale tourism projects on Mykonos include those by companies such as Southrock, AGC Equity Partners (in collaboration with Four Seasons and Blue Iris), Grivalia Hospitality, and the Mitsis Hotels and Resorts Group.

Local opposition

Mykonos, Greece. Photo source: Unsplash.

The announcement of the new measures has sparked concerns from both Mykonos’ residents and local officials.

Mykonos Mayor Christos Veronis voiced that the new regulations effectively limit land development for locals. “The land is being taken from the locals, with the provision that they can only build on plots of 8 stremma (2 acres), and it is then being offered cheaply to foreign investors,” Veronis said.

The mayor further expressed that local hoteliers are struggling to compete with investors who have significant liquidity. These regulations, he argued, would ultimately benefit foreign investors at the expense of local businesses.

Reports indicate that illegal construction is currently widespread on the island, with many residents attributing this issue to the freeze on construction permits. They argue that these restrictions have led to an increase in unauthorized building, as locals seek to bypass regulatory obstacles.

South Aegean Region Governor George Hatzimarkos stated to the local press, “Respect for the natural environment is not the only criterion. Sustainability must extend to other areas, such as social and financial sustainability. At the same time, development must be sustainable so that debts will be serviced. On the other hand, we cannot ignore property rights.”

The new urban planning framework for Mykonos has been open for public consultation since November 12, and local officials are hopeful that feedback from residents and investors will help shape a more balanced approach to development on the island.