Computer-generated image showing Stockholm Wood City in Shikula. The building, made from wood, sits alongside some of the area’s original industrial structures.
Atrium Luenberg, White Architector
A huge new city is being built in Sweden, but not using steel or concrete. The main building material is wood.
According to the developers, Swedish capital Stockholm is set to become the “world’s largest wooden construction project.” Atrium LumbergInvests 12 billion Swedish Crona (approximately $1.25 billion) into the project.
Sickla, an industrial area south of the heart of Stockholm, once known for its diesel engine manufacturing, is being redeveloped using cross-linking materials, and materials are used on the building’s cores, floors and walls.
New wooden houses, offices, schools and stores are interwoven with old structures, some of which have been converted into libraries and cinemas, extending the area to 250,000 square meters or approximately 2.7 million square feet.
Computer-generated images of Chicla, a “timber city” under construction in Stockholm, Sweden.
Atrium Luenberg, White Architector
Håkan Hyllengren, head of business development at Atrium Ljungberg, said Sickla aims to be a showcase for sustainable development. According to the United Nations Environment Programme, the construction sector produces 37% of the world’s carbon emissions and produces “much more”, “much more”, “much more”, “much more”, “much more”, and “much more” when it comes to greenhouse gases.
“We’re in a sector where we can really make a difference. If we can build it differently and run the building in a more environmental way,” Hyllengren told CNBC over a video call.
According to Hyllengren, doing so also contributes to Atrium Ljungberg’s goal of reducing construction emissions to near zero by 2030.
Computer-generated images showing the exterior of the apartment at Kvarter 7, a home in Stockholm Wood City.
Atrium Ljungberg | White Architector | Imagine
Research shows that massive wood buildings produce much lower emissions than those made from steel or concrete. A 2024 study by USDA Forest Service scholars suggested that timber buildings have at least 81% lower potential for global warming (a measure of emissions) than concrete, while steel diagrams are 76% lower.
Almost 70% of Swedish territory is made up of forests, and the country has used wood for construction for many years. “We have close cultural ties to the forest,” said Oscar Norrius, the lead architect of White Architect, who works with Atrium Lünberg on the project.
“Many Swedes spend their time doing various activities in the forest. But it is also a very large part of the economy, not just for construction, but for energy, for energy, for bio-based products,” Norelius told CNBC over a video call.
All buildings in Sickla are constructed using wooden frames.
Atrium Luenberg, White Architector
But Hyllengren said that wooden buildings are “usually a single house here and there,” so creating an entire city from wood is new.
Norelius designed Sara Kulturhus, a 20-storey building north of Sweden, made of wood, consisting of a museum and gallery space, an event hall, a library and a 200-room wood hotel.
This project helped people in the industry understand the potential to build large structures on wood. This can be perceived as difficult due to rules regarding fire risk. “We changed our mindset by seeing wood as a driver for architecture rather than a restraint,” Norlius said.
Sickla includes homes, communal areas, shops, schools and office buildings.
Atrium Luenberg, White Architector
The first part of the development, the 80 apartment residential area named Kvarter 7, will be completed by the end of 2025, but White Arkitekter is working on designing Sickla’s first office block. The project also has planning permission for double use buildings. So, the house can become an office in the future and give the building a “second life,” Norlius said. Approximately 2,000 apartments are planned for 2027.
Beyond the sustainability of buildings in timber, people seem to love wood. Visitors to Sarah Kultulhus are seen embracing its wooden pillars. You will see the structure of the building, including pipes and ventilation equipment. That means there may be more wooden pillars that people can “lean and touch.”
Computer-generated images showing the exterior of the apartment at Kvarter 7, a home in Stockholm Wood City.
Atrium Ljungberg | White Architector | Imagine
Like other European countries, Sweden suffered real estate conflicts as interest rates rose in 2023, and Heilen Glen said he “feels it’s beginning to change.” Sickla’s transport links – trains and trams will run to Central Stockholm, and the city’s subway will be extended to development – Hyllengren said he is optimistic about the future.
Concrete floor slabs are about 20% cheaper than those made of wood, but Hyllengren said buildings from wood are much faster than traditional methods.
And the pleasant aesthetics of wood can also lead to economic benefits for developers. “We believe that what we create is attractive, and we will earn a higher rental income for that,” Hyllengren said.
