Greece Plans a Strict Special Urban Scheme For Santorini, Curbing Construction, Expanding Protected Areas And Reshaping The Island’s Tourism Model

Published on December 3, 2025

Santorini may be on the cusp of a sea change in how its land is used and built upon as the Greek Ministry of the Environment and Energy readies the island’s Special Urban Plan for ratification by the Council of State. The new framework is designed to address decades of intense construction, unchecked development, and rising pressure on local infrastructure in one of the world’s most-visited island destinations.

The spectacular caldera views, whitewashed houses, and villages perched on Santorini’s cliffs have long drawn millions of visitors. However, in years past, the island’s limited space and fragile environment could not keep pace with such large numbers. Under this plan, development will be heavily curbed, open landscapes will be protected far more rigorously, and tourism would grow along a long-term perspective instead of short-term expansion.

Protected Land Set to Cover Most of the Island

Under the draft Special Urban Plan, the share of Santorini designated as protected land would increase dramatically. Today, around 21.8 percent of the island’s area enjoys protection. The proposal would raise that figure to 67.3 percent, meaning more than two thirds of the island would fall under stringent environmental safeguards.

This is a radical shift for a popular tourism hotspot. A much larger portion of cliffs, vineyards, rural areas and coastal zones would be effectively off-limits to new development, with rules focused on preserving natural features, views and the traditional built fabric that defines Santorini’s image abroad. For tourism, that means the island’s visual identity and landscape charm – the very assets that attract visitors – would be given stronger legal protection, helping to prevent further erosion of its character by scattered new construction.

Tourism Zones Shrink as Expansion Is Reined In

The plan also drastically redraws tourism-development zones, directly affecting how and where new hotels, villas and holiday rentals can be built. The share of Santorini zoned for tourism development would shrink from 59.8 percent of the land area to just 6.8 percent.

Areas where residential construction is allowed outside formal town-planning zones would also be cut back, from 61.1 percent of the island down to 13.6 percent. This is a clear attempt to curb urban sprawl and stop tourism infrastructure from spilling deeper into rural and agricultural land. From a tourism perspective, this shift essentially signals the end of the free-for-all era of new accommodation popping up in almost every corner of the island. Future growth in beds will likely depend on upgrading existing properties, reusing old buildings, and focusing on quality rather than quantity.

Higher Building Thresholds to Limit Large Projects

For tourism facilities, the minimum plot size would jump to 40 stremmas (4 hectares), up from the current 8–15 stremmas (0.8–1.5 hectares). In practice, that makes it far harder to find eligible sites for large-scale hotels or resorts, particularly in open countryside, and effectively closes the door on many potential mega-projects.

For residential development outside town plans, the minimum plot size would double to 8 stremmas (0.8 hectares), with primary residences allowed at 4 stremmas (0.4 hectares). Only plots with frontage on pre-1977 roads would remain buildable, further restricting expansion into previously untouched areas. For tourism, these thresholds are a signal that future development must be more selective, larger per plot, and fewer in number, pushing investment toward carefully planned projects rather than dense patchworks of small builds.

Protecting Santorini’s Character and Global Brand

If implemented, the plan would give Santorini the strictest building rules of any Greek island so far. The core goal is to protect the island’s unique volcanic landscape, iconic skyline and historic settlements from a slow loss of identity under constant construction. For tourism, this is directly tied to brand value. Santorini’s appeal is built on dramatic views, a sense of space over the sea, and a feeling that visitors have stepped into a distinctive Aegean setting.

Overbuilding risks turning that into just another crowded resort. By freezing and protecting much of the island’s character, the plan aims to secure long-term appeal in a highly competitive global market. Some observers point to possible loopholes, warning that “strategic investments” or special routes could still introduce exceptions. But the overall intent is clear: to tilt the balance back towards environmental balance, landscape protection and sustainable tourism instead of endless expansion.

Tourism Impact: From Overtourism to Managed Growth

The most significant impact of these changes will be felt within Santorini’s tourism economy itself. For years, the island has been a textbook case of overtourism, with peak-season congestion, pressure on water and waste systems, and an ever-rising number of accommodation units competing for limited space.

By sharply limiting where and how much can be built, the plan is likely to:

• Cap the total number of beds over time, slowing or stopping further explosive growth.
• Push the market toward higher-value stays, as limited supply tends to favour quality upgrades over low-cost expansion.
• Encourage renovation and repositioning of existing properties instead of building new ones in open areas.

In the medium term, visitors could see fewer new builds and more emphasis on design, service and authenticity in the accommodation stock. Prices may remain high or rise further, but the experience is likely to be more curated, with less visual clutter and better-preserved surroundings.

Visitor Experience: Fewer Crowds in the Countryside, Clearer Limits in Towns

For travellers, the new regime will gradually reshape how Santorini feels on the ground. With a large share of rural and coastal land becoming protected, there will be stronger guarantees that vineyards, terraced hillsides and unbuilt slopes remain open and scenic.

In the more urbanised areas, stricter controls on new construction outside plans may slow the spread of rooms-to-let and short-term rentals into every available gap. That could help ease some pressure on local housing and preserve a clearer distinction between residential zones and tourist quarters, which is key for long-term community stability.

For many visitors, this could translate into:

• Better views and landscapes with fewer new buildings blocking sightlines.
• A more authentic feel in traditional villages, with less construction noise and fewer cranes.
• A clearer sense of where tourism is concentrated and where local life still dominates.

Local Economy: Fewer New Builds, More Focus on Value

On the economic side, the construction slowdown may affect developers, building firms and those who relied heavily on new projects. But for the broader tourism economy, the shift could prove positive over time.

By stabilising building activity, the island can move from a boom-and-build cycle to a more mature model based on:

• Higher-spending visitors drawn by quality and uniqueness rather than low-cost volume.
• Extended seasons, as a better-managed environment makes off-peak travel more attractive.
• Increased demand for local services, guided experiences, gastronomy, wine tourism, and cultural activities that do not require more construction.

This supports employment in restaurants, tours, transport, events and heritage sites, while reducing dependency on the constant expansion of bed capacity.

A Signal for Other Greek Islands

What happens next in Santorini will be closely watched by other Greek islands confronted by similar tensions between tourist demand and environmental limits. If Santorini’s Special Urban Plan protects the landscape while keeping the tourism economy robust, then it may turn into a template for how to manage popular Aegean destinations over the coming years.

What that means is that high tourism value does not need to be based on endless construction. Instead, careful control of development, strict protection of natural and cultural assets, and a conscious shift towards quality-driven tourism can secure both the visitor experience and the local economy long-term. Santorini’s move toward tougher rules is not just a planning story. It is a test of whether one of the world’s most famous islands can evolve from an overtourism hotspot into a model of managed, sustainable, high-value tourism – and still deliver the unforgettable views travellers come for.