The cabinet has approved the development of a Limassol Mall, ending a lengthy process involving competing applications for two shopping centres planned just 300 metres apart and paving the way for a major new retail development in the city.

According to InBusinessNews, the cabinet approved the Limassol Mall proposal while rejecting a rival application for The Mall of Limassol, bringing to a close a battle between the two developments.

According to Politis, a key factor behind the cabinet’s decision was recent progress on the regulatory plan for Ayios Athanasiou Avenue, which borders the proposed development.

The newspaper reported that the advancement of the road project significantly changed the assessment of traffic in the area and played an important role in the cabinet granting approval under its discretionary powers.

However, Politis noted that no timetable has yet been set for the road works, despite the project being regarded as a long-standing priority for the municipality.

The approved development is being promoted by the Papantoniou Group together with the consortium behind Nicosia Mall, which includes the Zorbas Group, PHC Group, Athienitis Group and VLM Group.

The new mall will be built on vacant land at the entrance to the Ayios Athanasios industrial area, next to Jumbo.

According to Politis, another factor in its favour was that much of the site lies within a commercial planning zone adjoining the industrial area.

The rival proposal, known as The Mall of Limassol, was submitted by Atterbury Europe, the company behind Mall of Cyprus and Mall of Engomi. It was planned for land fronting Spyros Kyprianou Avenue within the municipality of Amathounta.

Published planning documents show the Limassol Mall will include around 90 retail units, six kiosks, two restaurants, two cafés, a food court with seven additional eateries and seating for around 500 people, a five-screen cinema, an indoor entertainment area and approximately 1,270 parking spaces.

The development will comprise two basement levels, a ground floor, mezzanine and two upper floors, with around 28,400m² of leasable retail space and a total covered area of approximately 76,400m².

The project has attracted considerable opposition over several years, with concerns focusing on increased traffic congestion and the impact on Limassol’s traditional commercial districts.

Following the cabinet decision, Akel’s Limassol district committee issued a strongly worded statement opposing the approval, arguing that the government had failed to take into account the real needs of residents, quality of life and the wider impact of the development.

The party said the decision favoured “major economic interests” and argued that another large shopping centre ran counter to the principles of sustainable development and modern urban planning.

Akel warned that the Limassol Mall would further worsen traffic congestion by increasing reliance on private vehicles, while also raising concerns about air pollution and the quality of life of nearby residents.

The party also said the opening of another major shopping centre could deal a serious blow to hundreds of small and medium-sized businesses in Limassol that are already operating in a highly competitive environment.

Instead, Akel argued that the government should prioritise the regeneration of Limassol’s historic centre and traditional shopping streets through policies that support local businesses, create more public spaces and strengthen social cohesion.