Investing in circular transformation

Context- Large proportion of the built environment needed to cater to the needs of the future already exists today. The scarcity of resources and constantly growing demand, makes it important to have a well thought of and sustainable method. Circular economy being proposed globally implied indefinite cycles of material usage. This translates in the construction sector as maximum reuse of material in different forms to reduce resource wastage. Objective- The research aims to validate whether circular transformation of existing built stock could address the growing housing needs of the Dutch real estate market. The research extends to develop a roadmap which would help the investors validate the feasibility of moving in this direction. Research Question- How would it be feasible for to invest in circular transformation for a future proof-built environment & what would be the roadmap for it? Methodology- This research will be conducted using a hybrid method. Adopting both the empirical and operational method to understand, evaluate existing data and create a new structure for the construction sector. The process consists of an empirical literature study on the existing ways of working and the concept of circular economy and its implications in the built environment. An explorative study on the aspirations and extent of application and other related to the topic with different investment advisors was conducted. The gap in literature and the practical knowledge would be bridged through this research. Understanding the existing barriers in making this sustainable transformation and aim at finding solutions by revising the role of the stakeholders involved. Operationalize their expectations in a model to achieve the maximum return by investing within this new organizational framework. Analyse the cost of investment and the added value through environmental, socio-economics and financial returns in investment. Try to resolve the risks that exist in the way while making the required investments to realize the circular construction economy. Validate the working of the model in the pilot project of the MOR team. Results- The circular transformation of underperforming office buildings is made by considering strategies such as Resource Recovery, Product Life Extension, Sharing Platform, Product as a service, Circular Supplies (Accenture, Lacy, 2014). The proposed organisation structure demonstrates a process and fully functioning business model the building owner would have to follow in order to conduct a circular transformation. Assumptions regarding the required infrastructure to support the transition have been made. The roles and relationships shared by different stakeholders have also been developed. The result demonstrates the financial, environmental and social viability in making this transition. Showcasing a feasible outcome specifically for building owners in moving towards circular transformation. Conclusions- Moving towards circularity will not only have environmental but also social and financial benefits. Using existing under performing building stock strengthens the outcome with an overall better performance. Making it the most sustainable way to address the needs of the future. The implementation of circular business strategies helps make the investment feasible for all the stakeholders by maximizing transparency and profit sharing. In this study it has been demonstrated to be feasible for building owners. Scenarios demonstating the feasibility in different situations helps develop a possible roadmap towards circularity through transformation of existing built stock. However, realization of this business model is only possible with supportive infrastructure and regulations. Keywords- Circular Economy, Transformation, Adaptive reuse, Financial feasibility, business model, investor, product as a service, roadmap, circular transition, stakeholdersThe content of the interviews are under the ownership of the author to ensure confidentiality of the participants. Please contact the author incase of any queries.MOR TU DelftArchitecture, Urbanism and Building Science