This thesis was presented as partial fulfillment of the requirements for the Master Degree in Real Estate Management and Valuation at the School of Economics and Management (ISEG), Lisbon, Portugal. London Housing Market is a very dynamic and heterogeneous market composed of different types of dwellings and tenure type in where when you buy a house you are also buying its location in terms of transport, local services and quality. London Underground recorded over one billion passenger journeys in 2007. It has 268 stations and approximately 400 km of track. The thesis has the intention to determine the influence of London underground on residential real estate supply value of a specific type of dwelling. The analysis will be developed with the object to determine how the proximity of the tube stations to apartments will affect the apartments expected selling value. This analysis is of interest mainly due to investment decision making on land or property acquisitions for real estate development and investment purposes, either for public or private institutions.