Trams are already on track to change the face of the Capital

Property investors are snapping up sites to redevelop along the route, particularly at the stops and major interchanges, in anticipation of increasing numbers of passers-by, writes Linda Summerhayes.

YOU'D be forgiven for thinking the only impact Edinburgh's tramline has had on the city so far is to make life difficult for motorists. Drivers in the north-east of the Capital are already well used to cursing the trams as they attempt to avoid roadworks on Leith Walk.

Yet, loathe them or love them, they are starting to shape the city in more than the most obvious way. Although it is still more than two years until the first tram is due to run, savvy commercial property developers are already using them as a template for their investments. Snapping up properties along the route, particularly near the site of tram stops, they realise, can prove to be a canny buy.

"There are already significant developments," says Graham Bell, spokesman for the Edinburgh Chamber of Commerce. "The first thing we'll see in areas along the tram route is sites that are unoccupied or sub-standard taken over and that's already happening on Leith Walk and at Haymarket."

It is the major interchanges that have got the property developers most excited – Shandwick Place and Haymarket at the West End, as well as Elm Row and Picardy Place further east.

Tens of millions have been spent, or are about to be spent, transforming what were unremarkable properties into fashionable hotels, clubs and shops.

But there is also huge potential to the west of the city, as the link between the city centre and Edinburgh Airport takes in commercial sites at Ingliston, Gogarburn and Edinburgh Park. At Gogarburn, next to the Royal Bank of Scotland headquarters, the city council is using the promise of trams as a carrot to try to lure international companies to the area.

The tram line also takes in the Gyle shopping complex and its owners have said they plan to capitalise on the tram route with an expansion.

The pattern also continues in the East End and the tram stop, or transport interchange, at Elm Row was described as a "major factor" in the Fitzpatrick Hotel Group's decision to launch a new venture there.

Leading leisure tycoon Stefan King has already bought up property opposite the tram stop at Picardy Place where his nightspot GHQ opened last year.

And not one to miss a trick, he also recently snapped up a former casino at the West End, near another tram stop, as well as the Rutland Hotel.

Cameron Stott, director of commercial property experts Jones Lang LaSalle, says: "I think the trams are already starting to shape the city, especially around the transport interchanges.

"Around Edinburgh Park and also Haymarket and Waverley stations, where the trams will be converging with rail and bus routes as well, these are primary locations."

What's getting the developers excited is the possibility of making money because more people from further afield are visiting these areas. The success other cities have tasted is also adding to the buzz – Dublin's main shopping street reported a 25 per cent increase in trade after trams were introduced.

While the commercial hotspots around the tram stops, such as at the former Morrison Street goods yard, have already been snapped up, there are still sites ripe with potential along the length of the tram route.

"I think other developments will follow once people have a better understanding of the tram routes," says Mr Stott.

"The influence at points along the line of the tram is probably not really going to be felt significantly until it's up and running. That's when people will start to see pedestrian flows and where residential areas become more attractive because of the influence of the tram halts."

It is here where local businesses will thrive – as long as the areas around the tram stops are redeveloped so pavement cafes, small shops and market stalls can thrive. This is the vision of Edinburgh's design champion Sir Terry Farrell, who believes the city cannot be truly improved by the trams unless the public areas around the line are attractive.

Michael Apter, owner of the Paper Tiger stationery and gift outlet and chairman of the West End Association, agrees and says businesses are already thinking about how to make the most of the opportunity.

It is the aim of the association to promote the area between Queensferry Street and Manor Place as a community and they have branded their area as the West End Village.

"The tram stops are going to be delivering thousands of people to the city centre every day and it's inevitable the tram stops will become more of a hub," adds Mr Apter.

"Shandwick Place is already a big, big interchange and the trams will strengthen that hub in the city centre and reinforce the identity of the area."

Small traders along the route are of course more than aware of the construction work for the tramline.

As their businesses suffer because traffic and pedestrians are diverted away from them, the promise of future riches is no panacea.

However, the tram route has inspired new possibilities of huge investment in some parts of the city.

What is already clear is that Edinburgh's trams are going to change the landscape of the city in many more ways than simply bringing overhead cables and metal tracks back to the streets.