The government has cancelled its contract with Kition Ocean Holdings for the Larnaca marina and port development project accusing it of breaching the terms of their agreement.
According to local media, the government acted on the advice of the Law Office, which viewed Kition’s refusal to renew the guarantee for Larnaca port as a breach of a critical contractual term.
Officials delivered the termination notice to Kition Ocean Holdings yesterday morning.
Kition reacted angrily to the government’s actions, expressing their “surprise” at what they called the government’s “disregard for the court process.”
“The government’s behaviour undermines the rule of law, which should protect investors,” they stated.
Kition emphasized that such respect is expected of a nation state and mentioned that their legal advisors informed them that the notice of termination is “in breach of the terms of the agreement.”
Additionally, Kition are “examining our legal options” after receiving the termination notice while already in court over the government’s alleged failure to uphold its side of the agreement.
They asserted that they have “always acted in accordance with the agreement and the law” and have been consistently “willing to proceed with the project” and resolve disputes with the government “in a constructive way.”
The mayor of Larnaca, Andreas Vyras, described the latest turn of events as a “negative development”, adding that “the Larnaca marina and port project is an important project for the city and Cypriot economy.”
Writing in the Cyprus Mail, Kyriacos Kiliaris, the Chief Marketing Officer at Danos International Property Consultants & Valuers, believes that the sky’s the limit for Larnaca despite the marina setback.
Larnaca is banking on multimillion-dollar projects already in the pipeline, with ample room for further development in large areas not yet included in any plans.
In recent years, following the Covid-19 pandemic, Larnaca has emerged as a key player in the real estate market, experiencing unprecedented growth.
The city is currently seeing robust activity in both investment and residential sectors, attracting foreign investors and locals in search of their dream homes.
This surge in demand is reflected in the escalating rental and sale prices across the city.
According to data from Danos International Property Consultants and Valuers, rental prices for one-bedroom apartments range from €500 to €600, two-bedroom apartments from €650 to €750, and three-bedroom apartments from €800 to €950.
These rates have doubled, and in some areas tripled, compared to 2019. Property sale prices have also risen significantly, with increases of 50 to 70 percent in the district.
In surrounding areas like Pervolia and Livadia, land prices have doubled. For instance, a plot in Livadia that cost €100,000 in 2019 now sells for €200,000. However, some villages like Alethriko still offer affordable options for those looking to build their homes.
Larnaca’s development focus spans various fronts, including the revitalization of the beachfront area in Dhekelia, once dominated by oil refineries. Private initiatives are actively promoting projects in Larnaca, particularly in the former refinery area and along Dhekelia Road.
The Petrolina Group’s ambitious Larnaca Land of Tomorrow project, with costs exceeding €1 billion, exemplifies the city’s growth potential.
