As the demand for materials continues to increase and building lifespans shorten, the construction industry faces mounting pressure to reduce its material and environmental impacts. Mismanagement of construction and demolition waste (CDW) can have severe environmental consequences. To address this, material recovery and circular economy approaches offer significant potential for reducing construction waste through the sustainable use of resources. Existing circular economy and material recovery models that prioritize recycling and reuse efforts demonstrate a sustained commitment to supporting circular practices in the construction and demolition sector. The goal is to minimize waste production, which poses environmental challenges such as raw material shortages and sustainability concerns. Using Preferred Reporting Items for Systematic Reviews and Meta-Analyses statement for recruiting relevant literature, this mini review aims to identify the obstacles to implementing circular economy practices in the construction industry, while exploring opportunities for material recovery and circularity. The ultimate aim is to facilitate a fair and smooth transition towards sustainable development, while addressing environmental, social and economic barriers. A more sustainable and circular approach to building construction and management can be attained by considering all the aspects of the CDW cycle, resulting in significant benefits for the environment and society as a whole.