Larnaca renews its city center: renovations, new hotels, and hopes for tourism

The center of Larnaca has been living under large-scale reconstruction for almost a year. Closed streets and declining revenue for entrepreneurs complicate the lives of residents, but the authorities assure: the project will restore the city’s attractiveness and bring back tourists.

Since the end of 2024, several urban projects have been underway in the center of Larnaca — Alki Square, Acropolis Square and the surrounding streets are gradually changing their appearance. The municipality considers the reconstruction the first step towards the revival of the center. However, the city authorities admit: improvement alone will not bring back customers who have moved to malls, nor will it solve the problem of closed shops on Ermou Street.

In the near future — the launch of a program to revive trade with a focus on the retail sector.

Larnaca’s main hope is tourism. Over the past year, demand for hotels in the center has risen sharply. Today there are about 25 hotels, and 32 new applications have been submitted to the municipality. The EOAL organization has already issued 11 construction permits, with another 3 under consideration. Urban planning projects have also been approved: 7 permits issued, 11 still at the application stage.

According to Mayor Andreas Viras, investor interest confirms that the city center can once again become an attractive place for leisure and business. In 2024, Larnaca received 14.2% of Cyprus’ total tourist flow, and tourism revenues increased by 7.3% — to €3.2 billion.

PASYXE president Marios Poliviou notes that hotels in the city center offer around 800 beds and operate not only in summer, but also in winter. Tourists are attracted by gastronomy, cultural life, and walks through the city.

The municipality plans to encourage large companies to open offices in the center. Incentives and special rental conditions are already being discussed. According to the authorities’ vision, ground floors of buildings should remain commercial, while upper floors will be occupied by offices and hotels, increasing the flow of people.

Part of Ermou Street and Alki Square have already been renovated, but much work lies ahead:

• Grigori Afxentiou Avenue will be completed in 5 months;

• another section of the avenue — in 6 months;

• paving of Ermou and Zenon Kitios streets is planned to be completed by December 2025.

The Municipal Market area is promised to open in October 2025, with major works finishing by September 2026, and the final stage of the project by February 2027.

The total reconstruction budget exceeds €14 million. Funding comes through the THALIA program and the company Miltiades Neophytou Civil Engineering Contractors & Developers Ltd.

Not everyone looks to the future with optimism. According to Dimitris Dimitriou, chairman of the Businessmen’s Association, sales are falling, shops are losing customers, and navigation and work organization leave much to be desired. “The question is how many shops will survive until the end of reconstruction,” he admits.