Circular economy in built environment and real estate industry

Abstract

The concept of circular economy have gained a popularity in the scientific areas for the past decades due to raising influence of climate change, overpopulation, deforestation, resource depletion, urbanization, pollution and other global issues. Real estate is crucial aspect for every human being, because majority of people spend majority of their lifetime in buildings which are mainly located in cities. Purpose of the study is to reflect how built environment and real estate industry can benefit from the features of circular economy concept while promoting the practices of sustainable development. Authors have carried out a study based on the methodology of literature review and state of the art review to show how features of circular economy can support practices of sustainable construction. Results show that the construction processes can be supported by features of circular economy throughout the whole life cycle of construction project including logistics, supply chains, design, manufacturing process, exploitation and maintenance of real estate and reusing the building materials. Research indicates that urban circular economy contributes to the development of sustainable societies. Additionally, efficient implementation of circular construction requires profitability for majority of stakeholders.