Building Circular Cities: A Modular Integrated Construction Framework Supporting the Urban Sustainability Transition—A Systematic Review

Urban built environments face unprecedented challenges in resource management and sustainability, necessitating innovative approaches that integrate circular economy principles with construction technologies. This study addresses the critical research gap at the intersection of circular city initiatives and modular integrated construction (MiC) by employing a structured literature review methodology to systematically analyze existing knowledge. Following PRISMA guidelines, the search screened 438 papers (209 on MiC, 229 on Circular City Initiatives), of which 68 papers were included after quality appraisal for thematic synthesis using MAXQDA. The analysis offers a structured basis for operationalizing circular economy principles in the construction sector and provides a roadmap for future inquiry. The research develops a conceptional requirement matrix framework that bridges circular city principles with MiC implementation. Through systematic analysis, the study establishes six key requirements for construction technologies resulting from circular city initiatives and evaluates them against the six key MiC characteristics: prefabrication and assembly; speed and efficiency; quality and safety; standardization and mass production; sustainability; integration with technology. This matrix represents the first systematic approach to operationalizing circular economy principles through modular construction methodologies. The framework reveals that MiC constitutes a transformative paradigm for circular urban development through multiple synergistic pathways: prefabrication enhances reversibility and durability, extending service life and enabling material loop closure; eco-design integration improves safety and quality standards; deconstructability facilitates adaptive reuse; and BIM-based tools enhance material efficiency and recycling capabilities. The requirement matrix demonstrates strong alignment between circular city requirements and MiC characteristics, with adaptive reuse and modularity showing the strongest correspondence. Stakeholder engagement and policy support emerge as critical enablers across all implementation dimensions. While the framework is grounded in a structured literature review, it remains theoretical and serves as a foundation for future empirical validation.