This paper investigates the advantages of enhancing construction and demolition waste (CDW) recycling facilities to conform to circular economy (CE) models in Kazakhstan’s construction sector. The industry is experiencing significant growth due to urbanization, but it faces difficulties managing CDW, frequently resulting in landfill disposal. In response, this paper provides a cost–benefit analysis of upgrading the CDW recycling centres aligned with CE needs. Reflecting legislative changes in Kazakhstan’s Environmental Code, which prohibited CDW in landfills starting December 2020, the initiative to establish modern CDW recycling centres is gaining momentum in major cities. The primary objective is to maximize material recovery and eliminate contaminants that curtail the utilization of recycled sand and aggregate products. The analysis yields compelling results, indicating that the project has the potential to recycle up to 84 million tons of CDW over eight years, with an annual 25% capacity increase and a maximum possible 95% recycling efficiency. Despite an estimated cost of USD 48 million, the project demonstrates a payback period of 9.9 years, signalling eventual cost recovery. These findings underscore the project’s capacity to mitigate CDW issues while generating economic benefits and contributing to a sustainable environment. In conclusion, implementing modern CDW recycling centres in Kazakhstan represents a potent solution for the construction industry as it transitions toward a CE model. This transition addresses both pressing environmental challenges and promising economic prospects.