Developers, governments and investors are starting to broaden their definition of what constitutes value in urban development, moving from short-term project profitability to a holistic view over time, says a new report from Skanska.
Skanska’s Shaping Sustainable Places report highlights the need for cities, developers and investors across Europe and the US to collaborate so that urban developments have a chance of baking in long-term growth in social and financial value.
It identifies four approaches that can help:
- Design for change: Making buildings adaptable helps them achieve their full life-cycle, reduces retrofit costs, and increases their long-term value and competitiveness.
- Work together: Actors who shape neighbourhoods and districts – utilities, developers, transportation authorities, local governments, etc. – must exit their silos if urban developments are to work well over time.
- Design for and with people: Early and ongoing engagement with people living and working in new districts improves predictability and long‑term performance of the investment.
- Measure what matters: Integrating social, environmental and economic indicators leads to better decisions and long‑term outcomes.
GCR spoke to Skanska’s Lena Hök, executive vice president of sustainability and innovation and Claes Larsson, Skanska’s executive vice president, about the challenges of working across different sectors, longer time periods and meeting diverse goals.
How could Skanska’s initiatives be implemented across multiple sectors to ensure disparate parties work together?
Claes Larsson: Our work shows that implementation starts with early alignment around long‑term place performance, rather than short‑term project delivery.
This means bringing cities, developers, investors, operators and communities together at the outset of a project to define shared goals over a full life cycle.
Practically, this involves integrated planning processes, transparent data‑sharing and clear allocation of responsibilities across design, construction, operation and adaptation over time. When collaboration is structured early, it reduces risk and unlocks long‑term value for all parties.
Do all these parties share the same goals?
Claes Larsson: Not always at the outset, but they increasingly share overlapping interests. Cities seek resilient, inclusive growth. Investors want predictable, long‑term returns. Developers aim for efficient delivery and competitiveness. Communities want places that support everyday life.
Our research shows that these goals can converge when framed around long‑term performance, resilience and adaptability. Aligning around outcomes rather than silos helps bridge differing priorities.
What incentives are there for those in the private sector to do this?
Lena Hök: There are strong financial and strategic incentives. Climate and social risks are increasingly priced into capital markets, insurance and regulation, meaning assets that are adaptable, resilient and socially relevant are more likely to retain value over time.
Early collaboration also reduces delays, redesign and opposition, improving predictability and lowering project risk. In short, working together is not just good for society, it is increasingly good business.
How can stakeholders work with the local community to ensure future needs are fulfilled?
Lena Hök: By engaging communities early and continuously, not as a last step. Treating dialogue and social value as part of risk management helps identify future needs such as changing demographics, mobility patterns or public space requirements.
Designing with people leads to places that remain relevant and well‑used over time, strengthening long‑term demand and trust.
How have societal expectations changed over time, and what can stakeholders do to meet these challenges?
Lena Hök: Expectations have shifted from buildings being efficient at handover to places being adaptive, inclusive and resilient over decades.
People increasingly expect developments to support well‑being, social life and climate goals, not just to deliver square metres.
To meet these expectations, stakeholders need to move from compliance‑driven approaches to holistic planning, embedding social, environmental and economic considerations into early decisions.
Why do you think urban development planning and financing has lagged when compared to other sectors?
Claes Larsson: Urban development is still largely organised around short project cycles, while cities and buildings function over generations.
Fragmented governance, siloed incentives and rigid planning frameworks make it harder to account for long‑term performance.
Other sectors have more fully integrated lifecycle thinking into financing and decision‑making. Closing this gap requires updating planning, procurement and financing models to value adaptability and resilience over time.
How can we make sure developers take responsibility for a building’s life cycle?
Lena Hök: Responsibility increases when long‑term performance is embedded into contracts, design decisions and stewardship models.
This includes designing for adaptability, assessing climate risk early, and aligning incentives so outcomes after completion matter, not just delivery.
When developers, cities and investors share responsibility beyond handover, lifecycle value becomes a core business consideration.
Is there a method of measuring social or holistic value that is easily implementable into the building process?
Lena Hök: There is no single universal metric yet, but progress is being made. The report highlights the need to integrate social, environmental and economic indicators early in decision‑making, rather than treating social value as an afterthought.
Tools such as social value indices, place performance assessments and established certification frameworks can already guide choices, even as standards continue to evolve.
How could a culture of openness between parties be encouraged?
Claes Larsson: Openness grows when transparency is built into processes, from shared data and assumptions to clear roles and expectations.
Early collaboration, long‑term stewardship thinking and joint evaluation of outcomes all help foster trust. When parties see openness as a way to reduce uncertainty and risk, rather than losing control, collaboration becomes the norm rather than the exception.
What areas need to be improved to ensure longevity in urban planning?
Lena Hök: Three areas stand out:
- Lifecycle thinking: So places are designed to adapt over time rather than become obsolete;
- Collaboration and governance: Reducing silos between public and private actors;
- Measurement: Ensuring social and long‑term value are considered alongside environmental and financial metrics.
Improving these areas helps cities and developments remain resilient, relevant and valuable for generations to come.
- Skanska’s “Shaping Sustainable Places” report is available to read here (PDF).
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