Land values in parts of Fishermans Bend would soar if a proposal to build a new bridge over the Yarra at Docklands for trams, pedestrians and cyclists went ahead, a report released on Thursday said.

The report, commissioned by Port Phillip Council, says the increase in land value would more than offset the $190m price tag for the project.

An artist's image of tram bridge over the Yarra River at Docklands.

The council wants the bridge built to connect Melbourne's CBD to the Fishermans Bend Urban Renewal Area - hundreds of hectares of largely industrial land now being converted to residential and commercial. The population in the area, which is close to the CBD but largely inaccessible, is expected to surge.

During the next 40 years, around 80,000 residents and more than 60,000 jobs are expected to move to the area. There are already 14 apartment towers approved.