Major Investment in the Heart of Larnaca
Larnaca’s commercial centre is entering a new era. The municipality has launched two large-scale redevelopment projects worth more than €14 million, co-funded by the THALIA Programme. The works, which began in late 2024, target Alki and Acropolis squares as well as key central streets.
City officials expect the projects to boost commercial activity and restore vibrancy by 2027, even though local shopkeepers are currently struggling with disruptions.
Construction Progress and Timeline
Redevelopment is moving forward on three active construction fronts. Businesses face accessibility problems and lower turnover, yet progress is visible. Workers have already completed parts of Ermou Street and Alki Square.
Construction continues along Grigori Afxentiou Avenue and will likely last through 2026. The final phase, stretching to the Ottoman Bank, is scheduled for completion in February 2027.
Tourism Boost with Boutique Hotels
Tourism plays a central role in the city’s recovery. Demand for boutique hotels in Larnaca and other tourist accommodation is rising sharply. Investors plan 32 new units in addition to the 25 already open.
The Cyprus Hotel Association reports that these hotels now provide more than 800 beds in the city centre. Year-round visitors not only stay in these hotels but also dine, shop, and explore local culture, giving businesses a steady flow of customers.
Attracting Businesses Back to the Centre
Urban planning incentives aim to draw large companies to relocate their offices downtown. This would increase footfall, support retail activity, and complement the new hotels. Several firms, including advertising and tourism businesses, have already shown interest.
Shopkeepers Facing Hard Times
For shopkeepers, survival until 2027 is the biggest challenge. Many report steep drops in turnover and limited access to their stores due to construction barriers. The Shopkeepers Association has raised concerns about safety, poor signage, and project delays.
Long-Term Recovery Potential
Despite current struggles, Larnaca officials remain optimistic. They highlight the city’s seaside location, cultural identity, and growing hotel base as key strengths. With modern infrastructure, an expanding tourism market, and new corporate offices, the municipality believes the city centre has strong potential for long-term recovery and growth.
Source: Philenews (September, 2025)