Shortly after the beginning, the protagonist will seize control over Ascali. As the ruler, you can construct and upgrade buildings around the city. In order to open the building screen, got to the Lorren Castle and click the chest. Remember that building and upgrading buildings takes time as well.
You will see a screen with all the buildings of your kingdom. At first, most of them will be unavailable, but alon with the progress in the game, you will meet more people who’d like to live in the kingdom. It won’t be until chapter 3 that you’ll be able to construct all buildings.
When you press the hammer icon, next to the name of the building, you will see the window showing the materials needed for construction. Those materials can be collected on expeditions – on top of that, you also need to pay some currency (DLC). Most buildings in the game can be developed up to level 3 – each consecutive level is of course more expensive.
The advantages of developing the city are twofold:
In the initial chapters, you shouldn’t really worry about upgrading buildings. Focus on erecting new ones when new citizens arrive. Start thinking about upgrades in chapter 3 – same goes for developing relations with chosen characters.