The incredible £1bn city being made of wood in stunning European country

A "groundbreaking" city made of wood is to be built in a European country. The project is set to be the largest of its kind in the world and could cost up to 12billion Swedish Krona, the equivalent to just over a billion pounds (£1.05billion).

The 250,000 square metre settlement will include residential properties, including 2,000 housing units; workplaces, including 7,000 offices; restaurants and shops, with the development overall aiming to create a new, "vibrant urban environment" in Sickla in southern Stockholm, Danish architects Henning Larsen say.

The first buildings in the city are due to be completed by the end of this year, and when complete it will greatly expand available space in Stockholm’s "over-crowded" real estate sector while "keeping its environmental footprint to a minimum". Annica Ånäs, CEO of Atrium Ljungberg, said: "Our industry leaves a big mark, and it is important for us to make a positive difference in both the shorter and longer term.

"We want to create an environment where our customers, those who will live and work here, can participate in the development and design of the city district of the future.”

The Swedish urban developer added: "Stockholm Wood City marks a new era for sustainable architecture and urban development.

"The advantages of wooden buildings are many and tangible, both for the environment and for people's health and well-being.

"As shown by various research studies, wooden buildings provide better air quality, reduce stress, increase productivity and store carbon dioxide throughout the time they are in use.

"Using wood also means quiet construction sites and reduces the number of heavy transports during the construction period."

At present, business bosses say there are more than 400 companies located in Sickla, which include large international companies and smaller start-ups.

Planners say that, for those who will work in Stockholm Wood City, there is "the opportunity to be involved in the development and design" of the project.

Atrium Ljungberg adds: "Companies can be a part of designing their own office here, square in the city of tomorrow, a place promoting health and well-being."

Sickla is described as a "five minute city", and the firm says it has spent more than 20 years developing it "from an industrial area into a vibrant city neighbourhood".