Lugano is building an urban region on rails

766 million Swiss francs, a 2.2-kilometre tunnel under Breganzona, travel times of seven minutes between Bioggio and the city center. The Rete Tram-Treno del Luganese is the largest transport project in southern Switzerland. At the same time, it is also an endurance test for the development capacity of the entire region. At the beginning of April 2026, the Federal Administrative Court dismissed the last five appeals. This means that little stands in the way of construction starting in 2027.

The Tram Treno network connects the city center of Lugano with Malcantone and the Valle del Vedeggio via three sections. In future, the journey from Bioggio to Lugano Centro will take seven minutes, from Agno and Manno thirteen minutes and from Ponte Tresa twenty-four minutes. Capacity will increase from the current 7,500 to 20,000 passengers per day. An underground station at a depth of around 50 meters at Lugano railroad station will provide a direct connection to the SBB network. Those who previously commuted by car will have a real alternative on the rail network.

The tunnel at the heart of
The Breganzona tunnel is the key structure of the first stage. It connects Bioggio with Lugano Centro over a distance of around 2 kilometers and shortens the journey time by almost two thirds compared to today. The Tram Ticino consortium, with the participation of AFRY, was awarded the contract for the tunnel planning in spring 2025. RTTL SA, the project company responsible since fall 2023, is managing the contract award in several lots, from construction management and rail technology to landscape supervision.

Financing in place, appeals settled
The total costs of the first stage amount to CHF 766 million. The Swiss Confederation will bear the largest share of over 500 million, with the canton contributing around 20 percent and the municipalities of Lugano the remaining 14 percent. In September 2025, the Ticino State Council approved an additional credit of CHF 87.4 million after the costs had risen by around CHF 200 million compared to the 2019 estimate. This was due to inflation, raw material prices and the revision of the project design. On April 2, 2026, the Federal Administrative Court in St. Gallen dismissed the last five appeals against the project and confirmed its conformity with environmental and monument protection law.

What this means for the real estate location
Good rail connections change the quality of entire sub-areas. Development areas in Agno, Bioggio or Manno become noticeably more attractive as soon as they are integrated into an efficient network. This is particularly true in Ticino because the topographical narrowness and traffic congestion limit the scope for road transportation. Ideally, from 2035, the RTTL will provide precisely the stimulus that the real estate market in Lugano has been expecting for years. 75 years after the last streetcar in Ticino, a streetcar will once again run through the region and with it a new spatial order.

Sources: RTTL SA, laRegione, RSI, City of Lugano