One of the most discussed and long-awaited projects in Larnaca has finally moved from years of planning to actual implementation. The project involves the large-scale redevelopment of the old city hospital building, which is set to be transformed into a new municipal centre.
After lengthy delays and disputes over funding, the project has effectively moved forward. The decisive step came after the Cyprus Council of Ministers approved the sale of two municipal plots on Ermou Street during its meeting on 27 May.
Land Sale Will Help Launch the Redevelopment
Thanks to the government’s decision, the municipality will be able to complete the sale of the plots and secure approximately €4 million. These funds will form the foundation of financing for the first phase of the redevelopment of the historic former hospital complex.
According to Mayor Andreas Vyras, the next step will be signing an agreement with the company that won the tender for the land purchase. The successful bidder was Laday Ltd, a company linked to a Lebanese investor active in the real estate and development sector in Larnaca. The transaction is valued at €4,077,777. The proceeds will significantly reduce the amount of borrowing required to implement the project, which had remained on hold for many years due to financial difficulties.
Historic Building Being Prepared for Handover to Contractor
At the same time, the municipality is moving forward with the process of signing a construction contract with the company that will undertake the renovation of the former hospital building. Employees of the Cyprus Ministry of Health departments have finally vacated the premises, meaning the site can be handed over to the contractor as soon as all formalities are completed.
Larnaca authorities emphasize that this is not simply a renovation of an old building, but a strategic project aimed at upgrading the city’s infrastructure and revitalizing its historic centre. Following the extensive refurbishment, the site will become the new town hall, featuring modern administrative offices, public spaces, and improved facilities for residents.
Why the Municipality Was Forced to Sell Public Property
The tender for the sale of the two plots, with a combined area of 1,315 m², was announced on 5 March 2026. The sites had originally been earmarked for the construction of a municipal car park, but the project was never implemented. The city later regained control of the land and decided to use it to finance the redevelopment of the old hospital.
This course of action was recommended following a financial viability study of the project. The analysis concluded that selling part of the municipality’s property portfolio was effectively the only way to launch the redevelopment without placing an excessive debt burden on the city budget.
Experts note that the restoration of the old hospital could become an important milestone in the broader transformation of Larnaca. Renovating the historic building will not only preserve the city’s architectural heritage but also create a modern administrative centre. In addition, the redevelopment is expected to enhance the attractiveness of central Larnaca for businesses, investors, and new development projects.