Cities, developers and investors need to think beyond a short-term project-delivery perspective, and reconsider how long-term urban value is created, a new report by Skanska has suggested.
The construction firm’s report, Shaping Sustainable Places, says that more focus needs to be placed on social and financial investment that ‘lasts for generations’, with too many cities focusing on short-term initiatives that ‘risk undermining resilience, competitiveness and long–term economic value’.
‘A decisive new phase’
“Urban development is entering a decisive new phase,” commented Claes Larsson, EVP Skanska Group, Commercial Property Development and Investment Properties. “Success today is about creating resilient places that can adapt, endure and continue to deliver real value for people, climate and business long after construction is finished.”
The report highlights the need to address risk and protect investment value and meet rising societal expectations, calling on stakeholders to ‘close the gap’ in how urban development is delivered in both Europe and the US, and the long-term expectations for city locations.
The report identifies four actions that stakeholders need to address to ensure cities’ long-term viability:
- Design for change. Adaptable, resilient design protects asset value, reduces future retrofit costs and strengthens long–term competitiveness.
- Work together. Early alignment and shared stewardship between stakeholders improve predictability and long–term performance.
- Design for and with people. Early engagement with the local society reduces delays, strengthens demand and supports stable occupancy.
- Measure what matters. Integrating social, environmental and economic indicators leads to better decisions and stronger long–term outcomes.
‘Safeguard future value’
“Investors, insurers and central banks are increasingly integrating climate risks into their processes,” added Lena Hök, EVP sustainability and innovation, Skanska Group. “Buildings cannot be moved, they must be adaptable to safeguard their future value.
“As climate risk is priced into markets, insurance and regulation, value will increasingly follow those who design for change, collaborate early, plan with people and measure what matters, so buildings and districts stay resilient.”
In 2025, Skanska Group reported revenue of SEK 179 billion, with the group operating across select markets in the Nordics, Europe and United States. Read more here.
