Cabinet overrides Limassol on €95m mall despite backlash

Economy LimassolTop News Cabinet overrides Limassol on €95m mall despite backlash Cabinet Overrides Limassol On €95m Mall Despite Backlash Relevant News Cabinet overrides Limassol on €95m mall despite backlash 22 July 2026 Cyprus on fire alert: The 5 biggest wildfires in the island’s history 22 July 2026 Cyprus weather: Temperatures to reach 43C on Wednesday 22 July 2026 Angelos Nicolaou 22 July 2026 FacebookXWhatsAppEmailPrintViber The Council of Ministers approved a special dispensation planning permit last Thursday for a new, modern shopping centre in Amathounta Municipality’s Agios Athanasios district, at an estimated cost of €95 million: €55 million in construction and €40 million to be invested separately by shop owners fitting out their own units. The development is backed by C.A.C. Papantoniou Ltd and Swillmatch Ventures Ltd, the group behind Nicosia Mall, Athienitis Supermarkets, the Zorpas Group, the Voici La Mode-Marks & Spencer Group and Jumbo Trading Ltd. It passed through the Council for the Study of Deviations, which gave it a unanimous positive recommendation, accompanied by strict conditions, compensatory payments and a large package of mandatory traffic works. The Cabinet approved it despite objections from Amathounta Municipality, the Mayor of Limassol, ETEK and central-area traders, judging the project to be of major importance. Why the Cabinet approved it According to the Cabinet’s own stated rationale, the key justifications were that the existing My Mall already serves the city’s western side, so licensing this development on the eastern side balances Limassol’s commercial activity; that the Limassol Local Plan never designated Regional Commercial Centres and no suitable plots exist in the Central Commercial Area; that the site itself (Industrial Zone Va4 / Commercial Eb5) is already shifting toward offices, superstores and courier firms, so the mall fits an area already in transition; and that the project is expected to create thousands of jobs during construction and operation. The Cabinet’s rationale also states that keeping the historic centre “vibrant” is the responsibility of local authorities through their own initiatives, not something that depends on blocking development elsewhere. Traffic conditions and compensation Traffic was the central point of friction. The Department of Public Works found the existing road network already congested, with saturation reaching as high as 138 percent at some junctions. To secure the permit, developers must design, build and hand over an extensive package of road works before the mall opens, including new roundabouts at the Agiou Athanasiou/Spyrou Kyprianou and Andrea Kariolou/Evelthontos Ioannidis junctions, widened lanes along Agiou Athanasiou Avenue, upgraded traffic lights, and a new elevated pedestrian crossing west of the site. The Cabinet said these works should reduce road saturation even below current levels once complete. Developers must also pay €500,000 in compensation: €100,000 to Amathounta Municipality for environmental and community projects, €100,000 to the Agios Athanasios Industrial Association for road and security improvements in the industrial zone, and €300,000 to the Cyprus Land Development Corporation for affordable housing in the Limassol district. The approved plans also scale back the original car park in favour of a second underground level, freeing up a 5,000 square-metre public square and 3,400 square metres of green space. The ground floor will house a free, 700 square-metre interactive museum of ancient Amathounta, built with the Deputy Ministry of Culture, using digital reconstructions, virtual and augmented reality, and an AI-driven “period merchant” avatar to bring the ancient temple, marketplace and port back to life for visitors. Six objections The decision has drawn strong opposition from six local and political bodies. Amathounta Municipality warned the development would worsen already severe congestion, with Mayor Kyriakos Xydias saying the Cabinet’s decision showed local government had been ignored entirely; he called for the environmental and commercial impact studies to be published and questioned whether the state intended to force the closure of the city’s traditional commercial centre. The Mayor of Limassol, Yiannos Armeftis, also opposed the project, arguing the compensation measures proposed were insufficient to offset its impact. ETEK had recommended rejecting the licence outright over its traffic impact, while Kristis Dimitriou, representing traders in Limassol’s central commercial area, warned the mall risked both traffic chaos and a decisive blow to the city’s small and medium-sized businesses. AKEL said the government had “once again chosen to serve specific economic interests rather than the environmental, social and developmental needs of Limassol,” warning the mall would deal a severe blow to struggling small and medium businesses. The Movement of Ecologists – Citizens’ Cooperation called the decision “scandalous,” arguing it failed to meet the legal criteria for a planning dispensation under Regulation 19 and did not demonstrate the public interest required to justify it. The Ecologists said malls should typically be sited on city outskirts, in areas well served by public transport, or in degraded former industrial zones capable of driving urban regeneration without harming existing markets, and called on residents and local authorities to challenge the decision in court. ALMA – Citizens for Cyprus said the approval raised “reasonable and serious concerns,” since it was granted as a dispensation rather than under the Local Plan’s standard provisions. The party argued that a large-scale development outside Limassol’s central commercial core could weaken, rather than strengthen, the vitality the dispensation rule is meant to protect, and cited a separate provision barring dispensations that substantively alter a Local Plan’s overall strategy. ALMA said it would await the Cabinet’s published reasoning in the Official Gazette before deciding whether to raise the matter in parliament or submit a question to the Interior Minister. Volt Cyprus said the Agios Athanasios junction already carries around 90,350 vehicles a day, with single-day counts reaching 96,000, calling it one of Cyprus’s most congested points even before the mall’s addition of a 28,434 square-metre development with 90 shops, restaurants and a cinema. Volt argued the project should have been zoned differently, pointing to the Department of Environment’s own assessment acknowledging the site would normally require different zoning, and said the traffic study behind the approval examined the mall in isolation without accounting for over 60 new apartment blocks already under construction nearby. The party called for the decision to be reconsidered, a full area-wide traffic study published, and genuine consultation with residents before, rather than after, decisions of this scale are made. Subscribe to our Newsletter Latest News Cyprus on fire alert: The 5 biggest wildfires in the island’s history Cyprus weather: Temperatures to reach 43C on Wednesday Authorities issue orange warning for extreme heat as temperatures rise to 43C Four fire engines, two aircraft tackle Ergates wildfire (video) Overnight pharmacies on Tuesday, July 21 Man jailed eight years for raping woman, 63, in Paphos Kevin Keegan’s Cypriot connection: Remembering ‘King Kev’s’ special bond with the island Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.