Good Practice Highlight: Finland’s ‘Dream Square’ Brings Citizens Into the Future of Urban Planning

At the heart of the Dream Square initiative is a simple challenge: traditional municipal planning processes no longer meet citizens’ expectations for transparency, influence and meaningful participation. As the document notes, “the municipal urban planning processes are outdated and don’t live up to civic and stakeholder expectations of participation, inclusion and influence” .

To address this, the City of Nykarleby partnered with Åbo Akademi University to introduce interactive VR-based design sessions, allowing residents to explore a 3D model of the town square and co-create ideas for its future. Using a combination of photometric 3D modelling and a game engine, up to ten participants could design simultaneously — a major step forward for small municipalities seeking affordable digital innovation.

The response was overwhelmingly positive. According to the report, “citizens expressed feelings of being heard and the ease of use of the tool”, with young people in particular valuing the chance to shape a space central to their daily lives . In total, 50 residents actively tested the tools, with another 100 observing and contributing feedback.

Beyond the technology, the Dream Square stands out for its co-creation methodology, cross-departmental municipal collaboration, and strong youth engagement. It demonstrates how immersive tools can widen perspectives among public servants, strengthen democratic participation, and build shared ownership of local spaces.

As the INCLUDE portfolio highlights, this practice offers valuable inspiration for regions seeking to modernise planning, engage communities and build more inclusive, resilient futures. With its blend of VR, participatory design and collaborative governance, the Dream Square shows that even small municipalities can lead the way in digital transformation.

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