The Cabinet of Ministers of the Republic of Cyprus has approved the construction of a new shopping centre in Limassol, bringing an end to a long-running dispute over plans for two new malls in the city. The licence was awarded to the owner of Nicosia Mall, which plans to develop a modern shopping and entertainment complex in partnership with the Papantoniou Group. Atterbury Europe, the owner of the Mall of Cyprus and Mall of Engomi, had previously submitted a similar application, but the authorities ultimately selected the owner of Nicosia Mall.
Project Details
The new mall will be built in the Agios Athanasios industrial area, which was one of the main factors behind the decision. According to an environmental assessment published in 2024, the site is located in the southern part of the industrial zone and offers convenient access both from central Limassol and from the Nicosia–Limassol–Paphos motorway.
The project will represent a major investment in Cyprus' construction sector. In addition to the shopping centre itself, extensive road infrastructure improvements are planned. Three new roundabouts will be built during construction to help distribute traffic flows and reduce congestion on the surrounding streets.
Andrea Kariolou and Evelthontos Ioannidi streets will also be upgraded, with three additional small roundabouts to be constructed. These will provide convenient access to and from both the new shopping centre and the nearby Jumbo hypermarket.
The Project Has Sparked Debate Among Businesses
Despite receiving government approval, plans for the new mall have been the subject of debate for several years. Representatives of small and medium-sized businesses have previously argued that Limassol does not need another large shopping centre. In their view, the new development could redirect customer traffic, weaken the city's traditional shopping streets and worsen existing transport problems.
Business owners have also highlighted the shortage of staff in the retail sector and questioned whether the new complex would create a significant number of additional jobs or simply redistribute the existing workforce among different shops.
The main challenge now is to implement the project without significantly affecting traffic conditions. For this reason, the authorities have made the construction of new road junctions and the upgrading of the surrounding infrastructure mandatory before the shopping centre opens. If completed in accordance with the approved plans, it will become one of the largest commercial construction projects developed in Limassol in recent years.
Cyprus' Construction Sector Continues to Expand
Several major real estate and commercial construction projects have been launched in Cyprus in recent years. Despite high interest rates and a shortage of skilled workers in the construction sector, investment activity remains strong. Experts note that the construction of the new mall will create hundreds of jobs during the development phase and, once opened, will generate additional employment in retail, services and property management. At the same time, projects of this scale require substantial investment in transport infrastructure to prevent the city's roads from becoming overloaded.