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Project Foresees Radical Changes in Downtown São Paulo, with New Modalities, Parks, Billion-Dollar Investments, and a Promise to Integrate Transport, Leisure, and Housing. Transformations Could Redefine the Daily Lives of Residents and Visitors.
The city of São Paulo is preparing for one of the largest urban intervention packages in its history, with the launch of works that promise to transform the dynamics and landscape of the downtown area by the end of the decade.
The set of projects, totaling R$ 6.3 billion in investments, includes the implementation of two Light Vehicle on Tracks (VLT) lines, the creation of a BRT corridor, new parks, the revitalization of large public areas, and the requalification of strategic avenues.
These actions, according to a report published by the newspaper Estadão, have the potential to reverse the degradation that has affected the downtown area since the pandemic, encouraging the return of residents, strengthening commerce, and enhancing historical spaces.
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Transforming the Downtown of the Capital: Billion-Dollar Investments and VLT
Among the main initiatives is the investment of R$ 3.8 billion in the construction of two VLT lines, a modern rail transport system that will connect important neighborhoods and areas of interest in downtown São Paulo.
In addition, the extension of Avenida Marquês de São Vicente is planned, with the installation of a tree-lined boulevard, bike lanes, and dedicated lanes for the BRT system – high-capacity articulated buses.
The amount allocated for this project is R$ 1.5 billion.
The urban revitalization also includes the Public-Private Partnership (PPP) for Parque Dom Pedro II, estimated at R$ 717 million, and the project for the New Esplanade of Liberdade, with expected funding of R$ 338 million.
According to a report by the newspaper Estadão, the proposal is to integrate mobility solutions, green spaces, and social housing to promote social inclusion and reduce inequalities in the expanded downtown area.
VLT Can Accelerate the Revitalization of Downtown São Paulo
The Light Vehicle on Track project aims to revolutionize public transport in downtown, by connecting areas like Campos Elíseos, Bom Retiro, Parque Dom Pedro II, Brás, the historic center, and Avenidas Duque de Caxias, Rio Branco, São João, and Ipiranga.
The city’s estimate is that the VLT will transport up to 135,000 passengers daily, linking nine subway stations, two from the São Paulo Metropolitan Trains Company (CPTM), and five bus terminals.
One of the lines will be circular and will connect Avenida do Estado, Rua José Paulino, Avenida Duque de Caxias, Barão de Limeira, Rua Prates, Estação da Luz, Rua Mauá, Avenida Cásper Líbero, Praça Alfredo Issa, Avenida Rio Branco, and Avenida São João.
The second line, with a double track, will depart from Avenida São João towards Rua Maria Paula, Viaduto Dona Paulina, Praça da Sé, and Parque Dom Pedro II, passing through the Municipal Market, Avenida Senador Queiroz, and Vale do Anhangabaú, returning to Avenida São João.
In addition to mobility, the plan includes the creation of 50 kilometers of accessible sidewalks, the doubling of green space around the Sé, and the removal of 20,000 tons of carbon dioxide (CO₂) from the environment.
The city’s expectation is to launch the project bidding notice in the first half of 2026, with an estimated execution period of three years.
The VLT garage will be built on Avenida do Estado, in an area currently occupied by the State Department of Transit (Detran).
Extension of Marquês de São Vicente and Deactivation of Minhocão
Another key focus of the investment package is the extension of Avenida Marquês de São Vicente, which will connect the Barra Funda region in the west zone to Avenida Salim Farah Maluf in the east zone, near Penha.
The new boulevard, designed to be tree-lined and equipped with bike lanes, will have in each direction one lane dedicated to BRT, two for regular vehicles, and one blue lane for motorcycles.
The proposal, according to information gathered by the newspaper Estadão, is to allow the deactivation of the Elevated João Goulart, Minhocão, as provided for in the Municipal Master Plan for 2029.
The currently considered hypothesis for Minhocão is the demolition of the structure, but the decision will fall to the next administration, as the current mayor’s term ends in 2028.
Experts believe that the new roadway and integrated transport system can reorganize the flow of people and encourage new real estate and commercial investments downtown.
Social Housing and Inclusion in the Revitalization of Downtown São Paulo
The plan for downtown São Paulo also includes reserving areas for the construction of affordable housing.
Between 2021 and 2025, the municipal administration authorized the construction of 71,000 social housing units, especially in regions close to the Júlio Prestes Station and the corridor of Avenida Rio Branco.
The goal is to prevent the real estate appreciation resulting from the works from excluding vulnerable populations, displacing low-income residents to more distant areas while increasing transportation costs and travel time.
PPPs and Modernization of Strategic Areas in Downtown
The city is also banking on partnerships with the private sector to enable improvements in public spaces.
The Parque Dom Pedro II project, through the PPP, plans to create a commercial gallery and a new square in the bus terminal area.
The concession will be for 30 years to the winning company, responsible for implementing improvements and commercially exploring the site.
The bidding process, held in May 2025, was suspended by the Municipal Court of Accounts (TCM), which pointed out flaws in the financial modeling and questioned the purpose of the PPP.
The city claims the bidding was approved after revisions and awaits a response to proceed with the approval.
The New Esplanade of Liberdade, estimated at R$ 338 million, will also be enabled by PPP, involving the construction of slabs to connect viaducts and requalification of areas near Estudante and Américo de Campos streets.
The aim is to bring together historical and traditional neighborhoods, facilitating mobility and expanding the availability of communal spaces.
In your opinion, will these works genuinely promote requalification and social inclusion in downtown São Paulo, or do they risk deepening inequalities and transforming the area only for a few groups?
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