YIT is developing a new circular economy pilot block in Vallila, Helsinki

YIT is launching the development of block 697 of approximately 1.5 hectares in Vallila, Helsinki. The goal is to create a more versatile and significantly greener urban block that will serve as a pioneer in sustainable urban construction and circular economy in construction. The project will be carried out in close cooperation with the City of Helsinki and experts in various fields.

The block owned by YIT since 2020 is located in the area delimited by the Teollisuuskatu, Sturenkatu, Elimäenkatu, and Telekatu streets. A reference plan has been drawn up for the area, the aim of which is to enliven the Vallila area in accordance with the city’s objectives. The plan is based on principles of resource wisdom and a comprehensive application of circular economy solutions—more extensively than in any previous Finnish project.

The starting point of the planning work is respect for the industrial history and identity of the area, combined with advanced urban development. The block will become a dense, much greener and more versatile entity where housing, work and leisure are intertwined into a vibrant urban space.

The oldest parts of the block, which have historical and scenic value, will be preserved and integrated into the new urban block. The existing building stock will be used for new purposes. Three comfortable courtyard areas are planned for the block, as well as a new pedestrian connection through the block from Teollisuuskatu to Elimäenkatu, which will be connected to the streets of the Vallila area. New public spaces are planned for the buildings’ ground floors, which will promote communal and lively street space.

“The Vallila block is an opportunity for us to show that sustainable construction can be both ambitious and respectful of cultural history. We want to make this an industry-wide circular economy pilot project that will change the direction of urban development,” said Juha Kostiainen, EVP, Urban Development & ESG at YIT.

Material flows within the block will follow circular economy principles. The aim is to recover and reuse as many building components as possible—such as hollow-core slabs, columns, beams, suspended ceilings, and interior glass walls—within the same block. In the plans, the green factor has been increased tenfold from the current level. An extensive ground-supported yard is planned to be built in the block, using largely recycled material from the project. Green structures and vegetation will promote carbon sequestration and biodiversity. The circulation of materials, stormwater, carbon and nutrients will be integrated as part of the whole. The block will be planted with multi-species vegetation, large-growing trees and meadow-like roof gardens.

“The Vallila block is a new type of pilot project in which we are developing a sustainable city in close cooperation with the City of Helsinki, architects and other experts. Cooperation between the project team and the city’s experts has been crucial to make the block a truly new and sustainable example of urban development. We boldly try new things, learn as the project progresses, and openly share our successes and challenges,” said YIT’s Project Director Benjamin Kalliola.

“The Helsinki City Strategy has a strong ambition to accelerate low-emission or circular economy building solutions. The strategy also seeks to modernize the Vallila area in a way that combines the possibility of housing construction with the needs of commercial, industrial and cultural activities. This project offers an excellent opportunity to show how we can succeed in aligning these goals,” said Rikhard Manninen, Director of Land Use at the City of Helsinki.

The land use planning process will progress in stages during 2025–2027, and the plan proposal is expected to be available in spring 2026. The final decision-making process will take place in 2027.

Further information:

YIT Group Communications, tel. +358 44 743 7536, press@yit.fi
City of Helsinki, Detailed Planning, Paula Leiwo, Architect, tel. +358 (9) 310 23637, paula.leiwo@hel.fi

We build and develop sustainable living environments: functional and attractive homes, future-proof public and commercial buildings, infrastructure to support the green transition as well as industrial, production, and energy facilities to support our customers' processes. YIT's vision is to be the expert partner in developing sustainable homes, spaces, and cities - for a good life. There are approximately 4,100 professionals in our team and our revenue in 2024 was EUR 1.8 billion. YIT Corporation's shares are listed on Nasdaq Helsinki. 

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