Cyprus is in the midst of a major development boom, with billions of euros being poured into a wide range of projects.
This includes improvements to the country’s infrastructure, such as roads and ports, as well as the construction of new marinas, hotels, medical and diagnostic centres, university buildings, student dorms, golf courses, schools, and commercial and residential properties.
These projects are expected to bring a wealth of benefits to Cyprus and its residents, transforming the island’s landscape in terms of both infrastructure and its network of roads.
The Association of Large Investment Projects in Cyprus states on its website that its 19 members’ portfolio includes “state-of-the-art medical and diagnostic centres, modern schools, aesthetically pleasing university buildings, golf courses, commercial and residential properties, with a total value of €8 billion.”
It is further noted that “these large-scale development projects bring multiple benefits to Cyprus. They promote the strategic goals of the state for growth, generate revenue for the government, and thus strengthen our country’s development trajectory. The construction sector’s valuable contribution to the Cypriot economy is long-standing, evident from its annual contribution of 15-17% to the country’s Gross Domestic Product (GDP) and employment of over 40,000 workers.”
GOLF AND RESIDENTIAL DEVELOPMENTS
Among the ambitious projects in the Association’s portfolio is the Limassol Hills Golf Resort, currently under construction. This impressive resort will feature a biological water treatment plant, a photovoltaic park, and public green spaces.
Limassol Greens will offer an 18-hole golf course of international standards, a modern clubhouse, 500 villas, and 250 apartments. It will also include commercial and entertainment spaces, such as shops, restaurants, cafes, a wellness centre, a gym, outdoor areas for yoga and meditation, tennis and basketball courts, hiking and biking trails, playgrounds, an open-air amphitheatre, and a lush botanical garden. The project is expected to employ over 2,700 workers during construction and provide permanent jobs for more than 750 people once fully operational. The total cost of this development will exceed €400 million.
- Another significant investment for both Limassol and Cyprus is the Eagle Pine Golf Resort, valued at over €500 million. It will feature an 18-hole championship golf course, commercial areas, cafes, restaurants, a modern 80-bed boutique hotel, and residential developments on 676 independent plots, including five large integrated housing projects. The AMD estimates that this project will contribute €200 million to the state coffers and employ 300 people during its construction.
- The innovative Minthis Resort in Paphos, with a total cost of €500 million, will employ 800 people during construction and 500 permanent staff once operational. It is worth noting that the design and implementation of these projects are based on environmental impact studies, aiming to minimise negative effects on the climate. They adhere to practices that align with the principles of green and sustainable transition and development, significantly contributing to the country’s SDGs and ESG criteria.
MARINAS
The map of Cypriot marinas is undergoing a significant upgrade, with both existing and planned marinas integrated into large-scale development projects that are attracting strong interest from local and international investors.
However, some development projects, like the redevelopment of Larnaca’s port and marina, have faced implementation hurdles. A meeting at the Presidential Palace involving political intervention appeared to resolve a stalemate between the government and Kition Ocean Holdings. Despite this initial progress, doubts resurfaced just days later regarding the future of this, largest-ever investment project in Cyprus. This prompted the Audit Office to establish clear boundaries and the Parliament to seek further clarification.
It is noteworthy that Larnaca Marina, the first to operate on the island, entered a redevelopment phase in 2022, with an investment of €1.2 billion, the largest in Cyprus.
- The latest addition to the map of Cypriot marinas will be the Paralimni Marina, expected to be fully completed in 2024.
- Currently, Cyprus has four operational marinas: Limassol Marina, St. Raphael Marina, Ayia Napa Marina, and Larnaca Marina.
EDUCATION
Major development projects linked to education are also underway or have been completed. Construction of student accommodation in the walled city of Nicosia is progressing, aiming to bring life back to the old town, and similar projects are ongoing in Paphos, the first of their kind in Cyprus to be undertaken by a municipality.
In Limassol, a nearly €40 million investment is being made in private student accommodation, and by 2025, the new student residences of the Cyprus University of Technology (CUT) in Kato Polemidia will be completed.
ROAD INFRASTRUCTURE PROJECTS ACROSS THE ISLAND
Besides buildings, infrastructure projects in municipalities and communities are also crucial in improving residents’ quality of life.
The Medium-Term Fiscal Framework for the triennium 2024-2026 outlines a total cost of €619.6 million for development projects. The provision for the triennium 2024-2026 is a fund of €414.1 million. For urban areas, the fund amounts to €314.1 million, while for rural areas, it is €305.5 million.
According to the 2023-2024 Action Plan of the Ministry of Transport, Communications and Works, constructing a modern and safe road network is estimated to cost €439.3 million, with a completion timeline set for September 2026.
As part of this plan, ten infrastructure projects/interventions are being promoted, expected to transform Cyprus’s road network:
- Nicosia Ring Road Phase A1, from Lakatamia Industrial Area to Dali Industrial Area (works began in March 2020 and are expected to be completed by the end of 2024 or early 2025).
- Construction of the Astromeritis-Evrychou Motorway (expected completion by October 2025).
- Improvement of Argyroupoleos-Ippocratous Avenues and part of Tseriou Avenue and Strovolos Avenue in Lakatamia (estimated completion by October 2025).
- Construction of the Nicosia-Palaichori Motorway, from Anageia to Agrokipia (construction expected to be completed by September 2026).
- Construction of Phase A of the Germasogeia-Akrounda-Dierona-Arakapas Road (projected completion by June 2024).
- Construction of Phase A of the Limassol-Saittas Motorway (construction expected to be completed by the end of 2024).
- Construction of the Paphos-Polis Chrysochous Motorway, Agia Marinouda-Stroumpi Phase A1 (projected completion by December 2025).
- Improvement of the Sotira-Deryneia Road (works estimated to be completed by February 2025).
- Improvement of the Larnaca-Dekeleia Coastal Road (projected completion by June 2024).
- The first phase of the Paphos-Polis Chrysochous Road is expected to be ready by May 2025.
