The concept of circular economy have gained a popularity in the scientific areas for the past decades due to
raising influence of climate change, overpopulation, deforestation, resource depletion, urbanization, pollution and other
global issues. Real estate is crucial aspect for every human being, because majority of people spend majority of their
lifetime in buildings which are mainly located in cities. Purpose of the study is to reflect how built environment and real
estate industry can benefit from the features of circular economy concept while promoting the practices of sustainable
development. Authors have carried out a study based on the methodology of literature review and state of the art review
to show how features of circular economy can support practices of sustainable construction. Results show that the
construction processes can be supported by features of circular economy throughout the whole life cycle of construction
project including logistics, supply chains, design, manufacturing process, exploitation and maintenance of real estate
and reusing the building materials. Research indicates that urban circular economy contributes to the development of
sustainable societies. Additionally, efficient implementation of circular construction requires profitability for majority
of stakeholders.