The circular economy (CE), as an antidote to the ubiquitous and dominant global economic concept characterized by the uncontrolled exploitation of natural resources and the flow of materials from producers to users to landfills, has become inevitable. The application of circular business models is especially needed in the building sector, as one of the main consumers of natural resources and energy, considerable polluters, and substantial producers of waste. Since architects are important participants in the process of designing and building structures, it is clear that circular principles should be incorporated into architectural design (AD) as well. This paper deals with the analysis of the degree of application of circular principles in AD in Serbia and the challenges and difficulties that architects face in this endeavor. The methods used in the research included an unstructured interview on the basic principles of CE, a case study of selected housing renovation projects in Niš, Serbia (as an illustration of the principles that deal with extending the life of buildings in the domestic environment), and a survey on the degree and importance of the application of the CE principles in AD among architects in Serbia. The case study results and survey results led to the outline of guidelines for future AD in accordance with CE principles and recommendations for creating a working environment for the architects that is more circular oriented.