The Cyprus Government has approved plans for the long-awaited Limassol Mall, paving the way for a €100 million retail development in the municipality of Amathounta.
However, the decision has sparked widespread criticism from local authorities, business owners and opposition politicians, who argue that the project is moving ahead before essential transport infrastructure is in place.
The Cabinet approved the development by way of a planning derogation, while rejecting a competing proposal for a separate “MyMall Limassol” submitted by Atterbury Europe, the company behind Mall of Cyprus and Mall of Engomi.
Limassol Mall: A major retail investment for eastern Limassol
The new shopping centre will be developed in the commercial and industrial zone of Agios Athanasios by the ownership group behind Nicosia Mall, which includes leading Cypriot business groups such as Zorbas Group, PHC Group, Athienitis Group and VLM Group, in partnership with Papantoniou.
According to the planning documents submitted by the developers, the scheme represents an investment of approximately €100 million, around half of which will be allocated to fitting out retail units. Once completed, the project is expected to create around 1,000 new jobs.
The development will comprise:
- Approximately 28,434 sq m of leasable retail space
- Around 76,392 sq m of total covered development
- Two basement levels, a ground floor, mezzanine and two upper floors
- Around 90 retail units
- Six large kiosks
- Nine food and beverage outlets, including restaurants and cafés
- A food court with seating for approximately 500 people
- A five-screen cinema
- Family entertainment and gaming facilities
- 1,270 parking spaces
Developers estimate daily footfall of between 6,700 and 11,700 visitors, with an average of approximately 8,800 people per day.
Road improvements formed part of the approval
The approval follows discussions surrounding the long-awaited transport masterplan for Agios Athanasios, which local authorities had consistently argued should be delivered before any major commercial development proceeds.
As part of the project, three new roundabouts will be constructed on the surrounding road network to improve traffic circulation.
However, municipal leaders insist these works alone will not be sufficient.
Infrastructure must come first
Amathounta Municipality has reiterated that it does not oppose investment or economic development in principle.
Instead, its position has consistently been that no planning approval should be granted until major transport projects are either completed or under construction.
The municipality argues that it repeatedly warned the Government that the existing road network is already operating under significant pressure and that approving a development of this scale without wider infrastructure improvements risks making congestion considerably worse.
Among the key projects the municipality says should precede the mall are:
- The widening and extension of Agios Athanasios Avenue
- Sustainable transport improvements, including bus priority measures
- New pedestrian routes and cycle lanes
- Completion of the Northern Bypass road
- Additional connecting roads linking Germasogeia and Agios Athanasios
Municipal officials also expressed frustration that they learned of the Cabinet’s decision through media reports rather than formal government communication and say they have yet to receive confirmation that the conditions they proposed have been incorporated into the approval.
In a subsequent statement, Amathounta Municipality stressed that responsibility for delivering public infrastructure lies with the state rather than private developers.
Traffic remains the biggest concern
Transport capacity has emerged as the central issue in the debate.
Local officials note that the Agios Athanasios roundabout already accommodates approximately 110,000 vehicle movements every day, while Limassol continues to struggle with severe congestion across its main road network.
Municipal representatives argue that adding a major regional shopping destination before completing key road upgrades could significantly increase journey times, vehicle emissions and pressure on surrounding neighbourhoods.
They maintain that the development could still proceed successfully, provided the necessary infrastructure is delivered alongside it rather than afterwards.
Historic city centre businesses fear economic impact
The approval has also prompted a strong reaction from traders operating within Limassol’s historic commercial centre.
Representatives of local businesses have written to President Nikos Christodoulides requesting a meeting to discuss the decision, arguing that another large shopping centre risks drawing trade away from established retail streets.
Business owners warn that independent retailers, many of which have only recently recovered from years of economic challenges, could struggle to compete with a modern regional shopping destination.
Several have also questioned the value of public consultation processes if local concerns are ultimately disregarded.
Existing mall owner seeks legal advice
The decision has also attracted criticism from Andreas Hadjimitsis, founder and co-owner of MyMall Limassol.
He said he intends to seek legal advice regarding the conditions attached to the approval, questioning both the speed of the decision and whether sufficient consideration has been given to the area’s existing transport constraints.
While acknowledging that Limassol could support another shopping centre, he argued that its location should minimise impacts on the city’s already congested road network and established retail districts.
Political opposition questions planning strategy
AKEL Limassol has condemned the Government’s decision, arguing that it conflicts with principles of sustainable urban planning.
The party claims the approval prioritises major commercial interests over residents’ quality of life and warns that increasing dependence on private car travel runs counter to modern European planning policies.
It also argues that the development could place additional pressure on small and medium-sized businesses while increasing congestion and environmental impacts.
Instead, AKEL is calling for greater investment in Limassol’s historic centre, traditional shopping streets and public spaces designed to strengthen local communities and support smaller businesses.
Developer highlights regeneration benefits
The developers maintain that the new Limassol Mall will bring significant economic benefits to eastern Limassol.
George Georgiou, General Manager of Nicosia Mall, said the project would help upgrade the wider area and create a modern retail destination capable of serving the city’s growing population.
Limassol Mall outlook
Cabinet approval represents a major milestone for one of Cyprus’ largest commercial real estate projects.
Yet the debate surrounding Limassol Mall is far from over.
While supporters point to investment, employment and regional regeneration, opponents argue that the success of the development will ultimately depend on whether the Government delivers the long-promised transport infrastructure needed to support it.
As planning moves into the next phase, the focus is likely to shift from the principle of development to whether the road improvements, sustainable mobility measures and wider infrastructure commitments are implemented in time to prevent the project from exacerbating Limassol’s already pressing congestion challenges.
