Tram line enhances property values
In the heart of Lisbon, the vibrant neighbourhood of Marvila is gearing up for a significant transformation. The introduction of the new 16E tram line, set to link Praça do Comércio to Parque Tejo by 2028, is expected to have a profound impact on the area, driving up real estate prices, stimulating economic and social revitalization, and making Marvila a more attractive destination for investment and living.
Improved Accessibility and Connectivity
The 16E line enhances public transport links between Marvila and central Lisbon, making the neighbourhood more accessible for residents, workers, and visitors. This improved connectivity tends to increase the attractiveness of the area for living and investing.
Real Estate Market Effects
Enhanced transport infrastructure often leads to an increase in property prices and rental values, as demand grows from individuals seeking convenient access to the city center and other parts of Lisbon. The tram line encourages developers to invest in residential and commercial projects, anticipating higher demand. This can lead to the construction of new housing, renovations, and commercial spaces.
Urban Regeneration
Marvila has historically been an industrial and somewhat underdeveloped district but has been undergoing a transformation towards a more mixed-use, creative, and cultural hub. The tram line supports this by attracting businesses, cafes, galleries, and startups, which are often crucial to regeneration efforts.
Promoting public transit aligns with sustainable urban development, enhancing the quality of life and making the area more attractive for residents and tourists. Improved access can increase visitation to cultural venues and community initiatives, boosting urban vitality.
Precedents and Comparative Cases
In many cities, including other parts of Lisbon, new or improved tram lines have been associated with neighbourhood upliftment, gentrification processes, and increased real estate investment.
A Promising Future for Marvila
The investment in the 16E tram line and other planned developments in Marvila reflect a growing confidence in Lisbon as a capital that invests in its future. Market values in Marvila are likely to continue rising due to increased demand.
The Beato Creative Hub, art galleries, craft breweries, concept stores, and new dining and leisure options in Marvila have made it a meeting point for artists, entrepreneurs, creative professionals, Lisbon residents, and tourists. Properties located less than 500 meters from a new metro or tram stop typically experience an appreciation of around 10% after construction is completed.
David Moura-George, general director of Athena Advisers Portugal, expects continued interest from national and international investors in Marvila. He argues that the combination of industrial charm, a thriving creative community, and new real estate projects breathe new life into the neighbourhood. The average price per square meter of properties for sale in Marvila reached €7,189 in the first quarter of 2025, reflecting growing demand.
The dynamism in Marvila has attracted buyers and investors seeking it as a long-term investment opportunity. The urban regeneration efforts in Marvila reflect a growing confidence in Lisbon as a capital that invests in its future. New real estate projects continue to be attracted to Marvila, suggesting that its potential is far from exhausted.
The 16E tram line, with a projected investment of €160 million, will have 18 stops along its route, four of which are in the Marvila area. The tram line extension will bring Marvila closer to the city center and the northern zone of Lisbon, expected to carry up to 8.1 million passengers per year. The true revitalization of Marvila comes when the neighbourhood creates and maintains its own identity. The neighbourhood's steady emergence as a creative and innovative hub in the capital draws in new real estate investments.
The real estate consultancy Athena Advisers sees the planned 16E tram line as a driving force for the regeneration and increased value of the Marvila neighbourhood in Lisbon. The pipeline of new developments in Marvila, combined with urban regeneration efforts, indicates a growing supply of properties. The pipeline of new developments in Marvila, combined with urban regeneration efforts, indicates a growing supply of properties.
In the context of the new 16E tram line, the real estate market in Marvila, Portugal, is forecasted to experience significant growth, with rising property prices and increased demand. The improved accessibility and connectivity provided by the tram line make Marvila a more attractive location for both living and investing.
The influx of businesses, cafes, art galleries, and startups in Marvila, following its urban regeneration, is a testament to its growing appeal as a creative and cultural hub. This development trend is expected to persist, drawing further interest from national and international investors.
The future of Marvila appears promising, with its transformation reflecting a growing confidence in Lisbon as a destination for sustainable urban development and long-term investments in real estate. The city's continued investments in infrastructure, such as the 16E tram line, are expected to contribute to the area's ongoing economic and social revitalization.
