From waste to value: how circularity is reshaping real estate and construction

What if buildings could become material banks, storing resources to be reused and repurposed for future projects? In a recent webinar with Drees & Sommer, experts explore how circularity is transforming the built environment.

The construction and real estate sectors are major consumers of raw materials, contributing significantly to embodied carbon and global waste. From tackling embodied carbon and material health to real-world upcycling case studies, an expert panel shared practical strategies for embedding circularity into design and construction, offering a clear path toward a truly sustainable sector.

How the real estate and construction sectors are embracing circularity

Circularity is about valuing existing resources far beyond their anticipated lifespan, explains Mina Hasman, sustainability director at SOM. Traditionally, buildings and materials are designed with a set durability, but the opportunity to extend their life cycle plays a crucial role in advancing the circular economy, she explains. She emphasises that increasing awareness of circularity in the real estate and construction sectors is driven by both, environmental and economic incentives. Reusing materials reduces embodied carbon emissions while also providing cost savings to investors, developers and clients by decreasing reliance on virgin resources.

Simon Joe Portal, associate director and head of sustainable climate solutions (South) at Drees & Sommer UK, notes that while circularity is widely discussed, its full economic potential remains underexplored. Many stakeholders talk about circularity without fully grasping its implications, he says. He observes that while progressive clients prioritise reuse and retrofit projects, scalability is limited due to existing supply chain structures. Circular contracts are not yet standard, and logistical challenges hinder widespread reuse of materials. Additionally, he points out, true circularity requires addressing material toxicity and health concerns associated with complex material compositions, which can affect air quality and energy efficiency as well as circularity.

In terms of sector adoption, Mina observes that circularity tends to be more challenging in residential properties due to health considerations and the complexity of repurposing materials. However, she stresses that each project should be evaluated on a case-by-case basis. Alexandra Podvin MRICS, director, Technical and Asset Management at BauMont Real Estate Capital, adds when it comes to driving adoption, she sees a mix of investors and individual clients pushing for sustainability, with her firm prioritising ESG integration as a necessity rather than a luxury.

Rethinking buildings as material banks

Simon Joe shared insights from the ZIN project in Belgium, where 100,000 square meters of high rise floor area over two towers was urban mined and repurposed with a strong emphasis on circularity from the outset. The design involved an extensive inventory of materials for reuse and upcycling. The project achieved significant results, including a 25% upcycling rate (as opposed to downcycling) and a 15% reduction in demolition costs. This success was due to close collaboration with demolition contractors and manufacturers to ensure that materials were reused and reintegrated into value chains at their highest value at scale. For example, this included sending glass back to manufacturers for new high-specification windows to be created.

Mina emphasises that circularity requires a long-term mindset and broader collaboration across the value chain. She points out that involving stakeholders, such as manufacturers and insurers, early on in the design process is crucial to ensuring that circularity goals are maintained throughout a building’s life cycle. While examples like Corso Italia 23 demonstrate the potential of reusing and repurposing materials on-site, Mina acknowledges that this approach is not always easy. It requires input and close collaboration across the wider building supply chain. It also requires initial financial investment by the client, as recycling materials is not yet the norm in our industry. Construction teams also need to be scaled up to handle the repurposed materials effectively, making it a complex process, yet an essential step towards achieving circularity in building design.

Overcoming material sourcing challenges in the circular economy

Simon Joe discusses the difficulty of sourcing upcycled or recycled materials, with certifications like Cradle-to-Cradle playing a key role in ensuring materials remain in use. He highlights the lack of supply chains for reused materials, although platforms like Circotrade are starting to address this by enabling future material trading. For circularity to succeed, designers, asset managers and developers to challenge traditional supply chains. These stakeholders can also push manufacturers to provide materials with commercial models such as take-back schemes that support circular principles.

Mina adds that raising awareness and understanding of circularity in the built environment sector is vital. Mina also highlights the skilled labour shortage as a significant challenge when implementing circular principles. Without investment in specialised training, the industry risks slowing the adoption of circular practices, making it harder to meet ambitious sustainability goals. She explains that processes like upcycling existing materials often require more time and investment, when compared to the industry’s traditional construction process today. For instance, in the Corso Italia 23 project, the façade could not be reused directly, as it was not designed to be dismantled. It therefore had to be recycled and adapted to fit the new design. This required further coordination between the design team, the contractor and the client. Mina emphasises that to make circularity a viable and cost-effective option, the construction industry needs to ensure a sufficient pool of skilled workers capable of efficiently implementing circular practices.

Empowering teams and collaboration to drive circularity in high-profile projects

Alexandra also highlights the significance of having a motivated and inspiring team to push circularity forward. She says that collaboration and a shared commitment to sustainability are crucial in overcoming these challenges. Reflecting on a successful project, she shares the example of the Ariane Tower refurbishment. In this example, her team recycled 95% of the glazing and repurposed metal shields from the building into decorative chandeliers in the entrance hall. This creative reuse not only contributed to the building’s sustainability, but also demonstrates the potential for circularity in high-profile projects. The project was especially impressive as all of the building’s uses remained in place during refurbishment. She further adds that, for circularity to be fully realised, a cross-disciplinary approach is essential. Close collaboration between architects, constructors and project managers is needed, as well as a focus on ensuring that sustainable practices are both achievable and economically viable.

Embedding circularity: early integration, accountability, and collaboration

To effectively embed circularity in real estate, it must be integrated from the outset of a project. Mina stresses that circularity – similar to many sustainability ambitions – often becomes an afterthought, introduced only after key design decisions have already been made. Instead, it should be a fundamental part of the project's framework, guiding renovation, new builds and ongoing operations. She highlights the need for stakeholder buy-in and accountability, even suggesting that circularity commitments be embedded in contractual obligations to ensure follow-through at every stage of a project.

Simon Joe expands on this. He says: circularity strategies must be tailored to different roles in the value chain. He points out that successful circularity requires a collaborative approach. Designers, architects, manufacturers and investors can align their priorities to balance environmental impact with commercial viability. Rather than viewing circularity in isolation, he argues that it should be seen as a system that brings together multiple disciplines, creating a value proposition that works for all stakeholders.

By embedding circularity from the outset and fostering collaboration across the value chain, the built environment can transition from isolated successes to a systemic, sustainable future. Industry leaders must prioritise innovation and accountability to drive this transformation at scale.

The construction and real estate sectors are among the world’s largest consumers of raw materials, generating significant amounts of embodied carbon and producing substantial waste. How, then, can buildings be transformed into material banks, that serve as sustainable resources and new valuable business assets at the end of their life cycle? This webinar, in partnership with Drees & Sommer, explores how the “cradle to cradle” concept can be effectively implemented to promote and support the principles of the circular economy. The panel also discuss circularity challenges and opportunities, including tackling embodied carbon, materials health, and the potential for upcycling and recycling within existing buildings. The webinar features successful case studies and offer actionable insights into the considerations and steps to meet your circularity goals.