Monday, 13 April 2026
Cities, developers and investors are being urged to rethink how urban value is created, shifting away from short-term delivery models toward approaches that prioritise long-term resilience, adaptability and sustained economic performance.
In its latest report, Shaping Sustainable Places, Skanska argues that a narrow focus on immediate project outcomes risks eroding long-term competitiveness and undermining the broader value that cities generate over time. The study highlights a widening disconnect between how projects are delivered across Europe and the United States and how urban environments are expected to perform socially, environmentally and economically in the decades that follow.
According to Claes Larsson, Executive Vice President at the group, urban development is entering a new phase where success is no longer defined by completion timelines or initial returns. Instead, the emphasis is shifting toward creating places capable of adapting to future pressures while continuing to deliver value for occupiers, investors and wider society.
The report identifies four core principles that should underpin this transition. Designing for flexibility and long-term change is seen as critical to protecting asset value and limiting costly retrofits. Early collaboration between stakeholders is also highlighted as a means to improve predictability and ensure developments perform effectively over time. In parallel, engaging local communities at the outset is framed as a way to reduce planning risks and support sustained demand. Finally, the integration of environmental, social and economic metrics into decision-making is presented as essential to achieving durable outcomes.
From an investment perspective, the report reflects a broader market shift. Lena Hök, Executive Vice President for Sustainability and Innovation, notes that climate risk is increasingly being priced into financial systems, influencing everything from insurance to regulatory frameworks. In this context, assets that are not designed to adapt may face declining value, while those aligned with long-term resilience criteria are likely to attract capital.
The findings are aimed at institutional investors and policymakers navigating a more complex risk environment, where urban performance is measured not only by financial returns but also by its ability to respond to climate pressures, demographic change and evolving user expectations.
As capital becomes more selective and regulatory scrutiny intensifies, the report suggests that the long-term success of cities will depend less on how quickly projects are delivered and more on how effectively they endure.
