Urban development in Larnaca is accelerating at record speed in 2025, with planning applications rising by 53% compared to last year. The growth is driven by released land in Livadia, Oroklini and Pyla, alongside housing policy reforms, digital permit submission systems and strong demand for residential, hotel and commercial units.
According to the Larnaca District Local Government Organisation (EOA) data, between January and July, 1,295 urban planning applications were submitted. This represents a 53% increase compared to the same period in 2024 (844 applications), and around 73% compared to 2022 (749 applications).
“The steady upward trend in planning applications in recent years has peaked in 2025, highlighting the growing interest in development, investment, and construction activity in the city and district of Larnaca,” the Larnaca EOA noted.
Speaking to Phileleftheros, EOA president Angelos Hadjicharalambous stressed that demand is highest in the wider area of the former refinery, particularly the Livadia municipal district, where a large zone was released in May 2023 following the lifting of the Seveso Directive.
“The sharpest increase is in Livadia, followed by Oroklini and then Pyla,” he pointed out, noting that the overwhelming majority of planning applications concern residential units. He added that “there are also applications for hotel units and commercial developments.”
Rise in Larnaca applications due to several factors
The first is the full adoption of the digital system IPPODAMOS, which now covers the entire spectrum of licensing, allowing users and developers to submit applications 24/7, including weekends, without visiting the Town Planning Authority’s offices.
The second factor is linked to government housing policy, specifically the revision of planning incentives to encourage construction and the availability of housing units, along with the speeding up of the licensing process for certain types of developments.
Another key element was the approval of the Planning Amnesty Scheme by the Council of Ministers, which concerned the legalisation of unauthorised constructions in approved developments. The scheme expired on 23 June 2025 and led to a major influx of applications in the final days.
Additionally, the expiry of Order 1/2020 on 30 June 2025 played a role. The directive encouraged the use of renewable energy sources in developments and provided for additional building coefficients. This has now been replaced by Order 4/2025 issued by the Minister of the Interior.
Local authority commit to sustainable urban growth
EOA assured that its staff are working intensively to manage the increased volume of applications, “aiming at the fastest possible issuance of permits, the support of sustainable urban development, and the best possible service to citizens and investors.”
SOURCE: CYPRUS PROPERTY NEWS