A Holistic Sustainability Evaluation for Heritage Upcycling vs. Building Construction Projects.

The paper contributes to the debate on the holistic sustainability assessment of real estate projects, integrating economic, financial, environmental, and social aspects. A methodological study is presented to support decision-making processes involving the preferability ranking of alternative investment scenarios: new building production vs. retrofitting the existing stock, in the context of urban transformation interventions. The study integrates life cycle approaches by introducing the social components besides the economic and environmental ones. Firstly, a composite unidimensional (monetary) indicator calculation is illustrated. The sustainability components are internalized in the NPV calculation through a Discounted Cash-Flow Analysis (DCFA). Life Cycle Costing (LCC) and Life Cycle Assessment (LCA) are suggested to assess the economic and environmental impacts, and the Social Return on Investment (SROI) to assess the intervention’s extra-financial value. Secondly, a methodology based on multicriteria techniques is proposed. The Hierarchical Analytical Process (AHP) model is suggested to harmonize various performance indicators. Focus is placed on the criticalities emerging in both the methodological approaches, while highlighting the relevance of multidimensional approaches in decision-making processes and for supporting urban policies and urban resilience.