The growth rates in Larnaca are frenetic, which is evidenced not only by the dozens of construction sites in the city, but also by the increase in demand for productive investments. Larnaca is now leading the race for residential real estate, according to the relevant value index, published quarterly by RICS and KPMG Cyprus (second quarter of 2026). However, according to its stakeholders, demand is not only focused on residential developments, but also on investments, which will create new jobs.
In particular, there has been interest from Cypriot and foreign investors, among others, in the construction of hospitals, new hotel units, as well as technology and energy storage centers.
Given that especially in the city of Larnaca, many investments have been announced, which were never made, such as the unified redevelopment of the port and the marina by private investors, "F" asked for specific data from the Larnaca Provincial Self-Government Organization (EOAL), to see if this interest translates into applications.
According to the EOAL, the Organization has received several applications for planning permission for office developments, for about 30 hotels and tourist accommodation (most are boutique hotels), for 1 large hospital (Lebanese investors) and three smaller ones (medical centers and rehabilitation centers), as well as for sports centers.
Very important is the fact that there are submitted applications for the creation of two large data centers (metaphorical data storage centers) and two more for energy storage through battery accumulators.
These are projects worth tens of millions of euros, as the president of EOAL, Angelos Hadjicharalambous, told us, who noted that there are contacts with other investors who are interested in developments in the field of education and technology.
"In order for a city to have development, it must not focus on housing units. Development must include all pillars of the economy and investments that will bring jobs and at the same time be able to support residential development.
As the Larnaca EOA, we will promote developments of this kind, especially in the field of health, culture, education and technology", noted Mr. Hadjicharalambous, indicating that the above figures do not include the investments in the area of the former refinery, which will be hundreds of millions of euros, nor the cultural infrastructure that will be developed for Larnaca 2030.
Interest in hi tech campus as well
The Municipality of Larnaca, meanwhile, as stated by the mayor, Andreas Vyras, is in contact with investors from abroad, who are interested in developing a hi-tech campus and technological institutes in the city.
"There is also interest from universities, while the CMMI Center of Excellence (Cyprus Institute for the Sea and Shipping) has a large development plan, which helps the city," noted Mr. Vyras. He also added that an investment of about €100 million is underway. for the creation of a hotel unit in Oroklini, while a large company, linked to the financial sector, recently opened offices on Dhekelias Street, which expanded its activities from Limassol.
"We are pleased that there is interest not only in real estate investments, but also in more productive sectors that will bring jobs and help the development of Larnaca," he stressed.
The Chamber of Commerce and Industry (LCCI) also has contacts with investors, as its president, Dr. Nakis Antoniou, told our newspaper. "We want residential investments to be made, however, as a Chamber of Commerce and Industry above all we want investments that create jobs. This is how the city will develop," he noted, reiterating that the point is not to change the character of Larnaca.
Mr. Antoniou added that investments in the old Larnaca airport for aircraft maintenance and repair continue, while companies dealing with aircraft engines are also active in other areas. "Recently a Dutch company acquired a large logistic company in Larnaca, which means new prospects for the city in this area," he noted.
He also said that in addition to Lebanese investors, there is also contact with an Indian company that has expressed interest in creating a hospital in Larnaca. "We are helping because we have a problem in this area in Larnaca. The population has increased and instead of going forward, we are going backwards. At the Larnaca General Hospital, yes, a new A&E has now been built in a nice building. The only difference is that previously people were in a waiting line in an old building, while now they are in a waiting line in a new building," he noted.
He also sounded the alarm about the lack of infrastructure observed in Larnaca, especially in the area of Livadia, where development is unprecedented. "It is a fact that our roads, our sewers, the water supply system, etc. are not for this development. Infrastructure must be built by the state, because there is a problematic situation", stressed Mr. Antoniou.
The president of the Chamber of Commerce and Industry noted in conclusion that within December, on his own initiative, a meeting will be held with all the investors of Larnaca in order to discuss, not only the prospects of the city, but also its culture and character.
The way is also open for investment from Bahrain
The recent approval by the Bahraini Council of Ministers of a proposal for the twinning of Larnaca with Manama, the largest city and capital of the Kingdom, is also considered very important for the investment prospects of Larnaca.
This will make Larnaca the first city in Cyprus to proceed with a twinning with a city in the Gulf, which according to the mayor of Larnaca creates new prospects for cooperation in the fields of economy, tourism, culture and more. "It paves the way for investments and cooperation in many areas," he noted, underlining that the Government also attached particular importance to strengthening relations between the two countries.
The Bahraini Council of Ministers also approved the signing of a Memorandum of Understanding between the Municipality of the Capital of the Kingdom (Manama) and the Municipality of Larnaca. According to information, it will emphasize the strong ties that now connect Cyprus with Bahrain, but also the desire to strengthen cooperation between the two countries in areas of mutual interest, which will also include municipal affairs.
The areas of cooperation between Larnaca and Manama will concern the utilization of the coastal resources of the two cities and the upgrading of the level of services and facilities, joint programs for the exchange of know-how and modern technologies in waste management, environmental awareness and the development of public parks, as well as the exchange of best practices on issues related to digital transformation.
The two cities are expected to set up a joint working group, consisting of experts, which will monitor the implementation of what is stated in the Memorandum of Cooperation.
