Urban development in Larnaca is accelerating at a record pace, with the number of planning applications soaring by 53% in the first seven months of 2025 compared to the previous year. This boom is being driven by strong demand for new housing, the release of previously restricted land, and a series of government policy changes, according to the Larnaca District Local Government Organisation (EOA).
The Numbers and Hotspots
The EOA received 1,295 applications between January and July 2025, a sharp increase from the 844 filed during the same period in 2024, representing what the organization called a “peak” in a steady upward trend.
The geographic center of the boom is the Livadia municipal district, particularly in the area of the former refinery where a large zone of land was released for development in May 2023. Oroklini and Pyla are also cited as areas experiencing high demand. While the majority of applications are for residential units, there is also significant interest in building new hotels and commercial properties.
Key Factors Driving the Growth
According to Angelos Hadjicharalambous, president of the EOA, several converging factors are responsible for the surge. A primary driver has been government housing policy reforms, which include new planning incentives designed to encourage construction and increase the supply of available homes.
The application process itself has been streamlined by the full adoption of the IPPODAMOS digital submission system, which allows developers to file for permits online 24/7.
The spike in applications was also fueled by the expiry of two key schemes in June 2025:
- A Planning Amnesty Scheme that led to a last-minute rush to legalize unauthorized constructions.
- A directive that provided additional building coefficients as an incentive for using renewable energy sources.
Commitment to Sustainable Growth
In response to the unprecedented volume of applications, the EOA has assured the public that its staff are working intensively to manage the workload. The organization stated its goal is to ensure the “fastest possible issuance of permits” while supporting “sustainable urban development” in the rapidly growing district.
Source: Cyprus Property News