Larnaca is attracting growing investment in real estate, tourism, and healthcare. In the city center, former retail stores are being converted into boutique hotels, while new hotels and private medical centers are also planned. At the same time, the growing number of residential projects could eventually lead to lower apartment prices.
According to Angelos Hadjicharalambous, head of the Larnaca District Local Government Organization (EOA), the city is going through a period of strong economic and construction growth. From February through August 2026, 3,475 building permits were issued in Larnaca. During the same period in 2025, the figure was 1,759, while in 2024 it was 942.
There are currently 10 applications under review for the construction of new hotels in the city center and three applications for private medical centers. Two of the medical projects belong to foreign companies, while the third is Cypriot.
New boutique hotels are opening in central Larnaca
Investors are showing strong interest in Larnaca’s historic center. Plans include small boutique hotels, urban hotels, and apartments for short-term tourist rentals. Some former retail properties are already being prepared for conversion into hotels. These include:
- The former three-story Zara store. The building, owned by Zara Holdings Limited in the city center, is being repurposed and will be converted into a boutique hotel.
- The former Crystal Palace store. It is located at the intersection of Zenonos and Lysioti streets, on Achilleos Theodoulou Square. The building was purchased by Jordanian investor Rajai Khouri. Conversion work into a boutique hotel is already underway.
- The former Bershka store. Rajai Khouri is in negotiations to purchase the building or secure a long-term lease. Plans include either a modern urban hotel or a mixed-use project combining hotel and retail space.
The Jordanian investor’s company works with international hotel group Accor. This cooperation has already resulted in the Mercure Larnaca City Hotel on Evagorou Street and the beachfront Mercure Larnaca Beach Resort in the Oroklini area. According to the head of the Larnaca EOA, the new hotels are also expected to attract additional restaurants, cafes, and shops to the city center.
Two 20-story towers planned on the Oroklini coast
Another major project is Aqua Residences, owned by Solvin Ltd. The complex is planned for the Oroklini coastline and will include two 20-story buildings. Each tower will rise to a height of 67.7 m. Work is currently underway to restore the beach, which has been affected by erosion, with the shoreline having receded by more than 50 m. These works are being carried out in line with environmental requirements that must be met before the project can receive final approval.
Could apartment prices in Larnaca fall?
Strong demand for development land has already pushed land prices higher in Larnaca. However, the head of the EOA believes apartment prices could decline in the future.
The reason is the large number of new residential apartment buildings currently being designed and constructed. According to Hadjicharalambous, most applications for building permits concern residential developments in the wider Larnaca area, including Livadia, Oroklini, Pyla, and Pervolia.
An increase in the supply of new apartments could eventually put downward pressure on prices and make housing more affordable. For now, however, land prices continue to rise, and the actual impact of the new projects on the real estate market remains to be seen.