Larnaca is experiencing unprecedented growth in construction and investment interest in 2025. According to official data from the Larnaca District Municipality Organisation (EOA), 1,295 urban planning applications were submitted between January and July. This represents a 53% increase on the same period in 2024, when 844 applications were registered, and an almost 73% increase on 2022, when the figure stood at 749.
Political and legal context
Experts attribute this boom to a number of factors. In particular, the introduction of the Hippodamus digital platform has played a significant role by fully automating the application process and making it available 24/7, including weekends, without the need to visit EOA offices in person.
Another significant factor was the government's housing policy, which provided for a review of urban planning incentives to accelerate the construction and commissioning of residential properties. This has enabled developers to initiate and conclude projects more swiftly, which is particularly crucial given the escalating demand for housing.
]egislative changes and amnesties also played a role.
The significant influx of applications in the first half of 2025 is also linked to the Urban Planning Amnesty Plan, which permitted the legalisation of unauthorised construction within the framework of approved projects. The scheme was in effect until 23 June 2025. Recently, there has been a large influx of applications from beneficiaries.
Another incentive was the expiry of Directive 1/2020 on 30 June 2025, which encouraged the use of renewable energy sources in construction and provided an additional building coefficient. From July 2025 onwards, Directive 4/2025 of the Ministry of the Interior replaced it, retaining some of the benefits but in a new format.
What will this mean for the city and investors?
Larnaca is becoming one of the most dynamically developing cities in Cyprus, attracting the attention of local and foreign investors alike. The increase in applications indicates not only construction activity, but also growing confidence in the region's economy.
Representatives of the Larnaca EOA emphasise that they are working hard to process incoming applications as quickly as possible, support the city's sustainable development, and provide convenient services for residents and businesses.
If this trend continues, 2025 could be a record-breaking year for the number of building permits issued in Larnaca's history, creating new opportunities for developers, investors and future residents.