The groundbreaking of the palace was in 1498. The new palace was not to be located on a high and easily protected fortress hill, like the Palace of Alcáçova was, but instead was built on the river shore of the Tagus river, giving it the name of Ribeira Palace, or Palace of the Riverside. The new royal palace was located in the heart of renaissance Lisbon, which had become one of the most important cities and ports in all Europe, on account of its importance in the spice trade and Age of Discoveries. Ribeira palace was situated next to the "Ribeira das Naus" shipyard and near all the major Lisbon trading houses.