Building renovation was declared a key point for sustainable development, however, the renovation rate of residential buildings in the European Union is insufficient to meet the climate and energy targets set. This paper analyses the main circular economy models used in the construction sector, as well as the situation of the building renovation market, to set a framework for circular economy models in building renovation. Of all the existing strategies in this sector, design, material recovery, building renovation and end-of-life actions would be the best, respectively. It also includes a market analysis consisting of a literature review covering PEST perspectives (political, economic, social and technical) and a SWOT analysis (strengths, weaknesses, opportunities and threats), concluding with a market gap analysis. The results of these analyses allow the development of a series of suggestions and strategies to be followed in order to solve the main barriers that hinder the implementation of the circular economy in the building´s renovation sector.