In the heart of Stockholm’s Sickla district, construction has begun on what is being called Europe’s largest timber-built urban project. Stockholm Wood City, spanning 250,000 square metres of offices, homes, and retail, marks a significant shift toward sustainable construction, using engineered wood as its core material. The project, led by Swedish developer Atrium Ljungberg, reflects a growing trend where carbon-conscious design and liveability now guide real estate development across Europe.
Built with cross-laminated timber and glulam, the district will feature 30 low-emission buildings designed to reduce environmental impact by up to 60 percent compared to traditional concrete-based structures. Timber’s lightness not only lowers carbon footprints but also accelerates construction timelines and reduces noise pollution, improving urban build environments. The emphasis on natural materials, daylight integration and ambient acoustics contributes to a workspace and living model that promotes health, focus and productivity.
Stockholm Wood City is also a showcase for integrated infrastructure. Rooftop solar panels, geothermal heating, and green roofs are combined with public courtyards, cycle paths and parks, forming a “five-minute city” model that prioritises local accessibility. From a real estate strategy perspective, this convergence of wellness, energy resilience and design efficiency is setting a new benchmark for mixed-use urban development.
For developers and property investors, the project signals a clear market evolution. Demand for low-carbon buildings is growing not only among regulators but among corporate tenants seeking ESG-compliant space. While upfront costs for timber may exceed those of concrete, the long-term returns, through tenant attraction, premium pricing, and regulatory alignment, can outweigh the difference. Moreover, jurisdictions with progressive building codes and stable timber supply chains, such as Sweden, are making these projects viable at scale.
The rise of mass timber urbanism is more than a Scandinavian experiment – it’s a preview of the property sector’s sustainable future. Real estate leaders must now assess how to incorporate engineered wood, integrated energy systems and wellbeing design into their portfolios or risk falling behind as expectations shift.
