The 10-year-olds used virtual TNT to flatten a part of the city centre district in the Minecraft world, at the same time as contractors began construction work on the real site nearby.
The students from Loviselund School in Hässelby, Stockholm were then challenged to design and rebuild their own unique interpretation of the Urban Escape Stockholm neighbourhood in Minecraft, which is similar to an online version of Lego.
Rooftop swimming pools, an octopus aquarium and an apple orchard were among the ideas which will be used as inspiration for elements such as the hotel and the Urban Escape Rooftops – Stockholm's first public garden space built in the skies, connecting three buildings at roof-level.
Chief development officer Karolin Forsling explained: "We believe in collaboration in the creative process, and as developers of urban spaces we want to engage with Stockholm's 'future talents', the people who will live, work and play in this city.
"By partnering with Minecraft, we are giving young people a chance to shape one of Europe's fastest growing cities and we're inspired by how they have challenged convention and sparked new ideas."
Set for completion in 2019, Urban Escape Stockholm will comprise five buildings, four streets and two squares, with 130,000sq m of mixed use space anchored by two hotels and connected at sky-level by rooftop gardens.