Investing in Larnaca - strong growth!

Larnaca, previously a lagging city in development compared to other cities, is undertaking multi-million dollar projects, the city's mayor and representatives of the local economy said. According to Larnaca Mayor Andreas Vairas in a commentary for news website Stockwatch, the future of this coastal city looks brighter as foreign investors are excited about its potential.

"New life is expected to be breathed into an area covering more than 3 square kilometers in the eastern part of Larnaca as private developers have drawn up their master plans, including multi-million dollar projects," Vairas said.

The Larnaca mayor was referring to plans for new investment with luxury tourism projects on the coast of Dekelia, previously occupied by fuel and gas tanks. The largest property owner on Dekelia Road, Petrolina Holdings, is considering projects such as country homes or hotels. CSE-listed Petrolina Holdings has created a subsidiary, Petrolina Bayfront, acquiring three parcels of land from ExxonMobil on the Larnaca-Dekelia road.

After dismantling the fuel tanks, Petrolina has acquired the ExxonMobil property through a €30 million deal, which they plan to incorporate into their waterfront development. Petrolina submitted its plans for this area in April. The development is a mixed use development including a hotel, office space and residential units, dubbed Tomorrowland. The cost of the entire project is expected to exceed €1 billion.

The municipality of Larnaca will also contribute to the development of the area with infrastructure projects along the Larnaca-Dekelia road. "At the same time, the western part of Larnaca is undergoing redevelopment, as a municipal program to improve and restore the facades of houses on Piale Pasia Street will highlight the traditional architecture and historical character of the city." Vairas expressed confidence that west Larnaca would get its share of the "building frenzy" now gaining momentum in the Mackenzie Beach area. Applications worth millions of euros for hotels, apartments and mixed-use complexes submitted by local businessmen and foreign investors are pending with municipal authorities.

The chairman of the Local Chamber of Commerce and Industry, Stavros Stavrou, said they were pleased with the plans for the suburbs, but noted that the historic center should not be excluded. "The heart of the city beats in the center, where traditional character has been preserved.

Stavrou also expressed concern over the city's biggest infrastructure investment, Larnaca Marina and the port, noting that significant delays have been recorded. "Local stakeholders have raised concerns about when the project will start as heavy construction work has yet to commence despite the fact that contracts have been awarded and signed in December 2020." Stavrou said the company awarded the contract to develop Larnaca Marina and port, Kition Ocean Holdings Ltd, had allayed fears by assuring stakeholders that the project was on track. In a previous media commentary in July, Panos Alexandrou, director general of the Cyprus-Israel consortium, said that the redevelopment of Larnaca Marina and port would be in full swing from the beginning of 2024 and the €1.2 billion project would take shape. "From the beginning of the year, the area around the marina will become a huge construction site," Alexandru said. According to Alexandru, contractors will take four years to complete the work from the start of the project, expected to bring about 12 billion euros to the government. This will create 4,000 new jobs, including those directly related to marina operations and businesses that will open outlets in commercial areas. The renovation of the existing marina will accommodate 650 yachts and offer amenities such as boat repair. The upgraded port of Larnaca will accommodate vessels up to 450 meters in length, such as luxury cruise ships, energy exploration vessels, military and other commercial vessels. The property is expected to include luxury hotels, apartments, a convention center, shopping centers, educational spaces, research classrooms, a medical school, a travel college and an energy and environmental university.