Modern economic, social and environmental challenges require a new type of construction that ensures resilience, low construction costs and ease of maintenance. Material production, manufacturing of structural elements and final assembly should minimise the environmental impacts, such as greenhouse emissions and waste production. This review aims to identify the key routes of research and development required to address the environmental challenges the construction industry faces. It outlines recent advances and highlights the rising opportunities. The strategies with great perspectives include 3D concrete printing, prefabrication and modular construction, mortarless construction, development and utilization of sustainable, smart and composite materials, renewable energy systems and automation technologies including the Digital Twin technology. Hybrid approaches that combine traditional and novel construction methods present the greatest potential. Overall, collaboration between stakeholders is crucial in driving innovation and successfully implementing these advancements.