How adaptive reuse can address South Africa's urban development struggles

Successful adaptive reuse projects in South Africa require a multifaceted approach that balances legal compliance, financial viability and community needs. 

The key elements include navigating complex regulatory environments, securing appropriate professional expertise, engaging meaningfully with communities and heritage authorities, conducting comprehensive feasibility studies, and ensuring long-term financial sustainability, says Megan Jarvis and Sulani Jooste, who are partners at Webber Wentzel.

Urban development challenges 

They say that as South Africa continues to grapple with urban development challenges, adaptive reuse offers a promising pathway for sustainable growth that preserves cultural heritage while meeting contemporary needs.

“However, realising this potential requires coordinated policy reform, regulatory streamlining, and targeted financial incentives to encourage private sector participation in this vital aspect of urban regeneration.” 

Adaptive reuse is said to represent an approach to property development that addresses both economic and environmental imperatives in the country’s built environment. 

The full-service law firm examined the legal framework, challenges, and opportunities surrounding the repurposing of existing structures, providing practical guidance for developers, legal practitioners, and policymakers navigating this complex field.

Adaptive reuse

It says adaptive reuse is a concept in property development where old buildings are repurposed instead of being torn down.

“The Zeitz MOCCA in Cape Town is a well-known example where a grain silo complex was transformed into a museum of contemporary African art. In South Africa, adaptive reuse is gaining traction not only because it may be economically feasible but also because it allows for the creation of vibrant, sustainable environments while preserving the unique character of existing buildings.” 

However, the firm says growing demand for sustainable development through repurposing architectural strategies faces significant regulatory obstacles.

It says South Africa currently lacks comprehensive legislation specifically designed to facilitate building reuse, creating a policy deficit that renders adaptive reuse projects unnecessarily complex and time-consuming.

“The legal implications and regulatory requirements encompassing zoning, building codes, different municipal and provincial Government policies, bylaws and construction requirements, as well as pivot title deed conditions, must be carefully considered with input from appropriate professional advisers.

"Policy reform is needed to ease regulatory hurdles and obstacles to allow for efficient and timely approvals of re-zoning and building applications.” 

Jarvis and Jooste say that while the prospect of converting vacant warehouses into residential accommodation may appear attractive, successful adaptive reuse requires comprehensive due diligence and structural assessment. 

To convert or not to convert

They say that not every building façade can meet the requirements for residential or alternative use, thereby necessitating careful analysis of the conversion process.

“The existing space layout combined with potential coverage, density and title-deed condition restrictions often constrains developers who seek to change land-use rights without modifying the building's structural design, making feasibility assessment crucial from the outset.” 

Webber Wentzel says a thorough site analysis forms the foundation of any successful adaptive reuse project.

The firm says this assessment should evaluate the building's structural integrity, historical significance, and potential environmental hazards, which will also include a detailed analysis of the impact on roads, traffic, public parking and pedestrian access.

Conducting a detailed feasibility study early in the process helps identify potential obstacles and avoid costly surprises during development, it says.

Beyond ensuring the existing structure's suitability for repurposing, the firm says developers must carefully calculate conversion costs. It says engaging experienced professionals, particularly architects, engineers and town planners skilled in adaptive reuse, is essential.

“Significant structural changes can prove costly, and when dealing with legacy structures, additional regulatory compliance costs must be factored into project budgets. For heritage buildings, these may include specialised conservation requirements and extended approval processes that can also include a participation process.” 

Heritage legislation

The firm’s legal practitioners say heritage legislation presents both opportunities and constraints for adaptive reuse projects. They say buildings of historical importance must comply with the National Heritage Resources Act guidelines, which can then limit design flexibility but also provide frameworks for preservation.

The challenge lies in balancing modern functional requirements with historic preservation mandates, often requiring innovative design solutions that respect the building's cultural significance and history, they say. 

They add that rezoning applications represent a significant procedural hurdle that will require specialised professional support.

“These applications may face potential objections and are not guaranteed approval. Furthermore, if approval is obtained, the project can still be referred for an appeal process, potentially impacting project timelines and budgets. 

“Compatibility with existing surroundings plays a crucial role in rezoning success, making community engagement a critical component of the approval process. Projects that demonstrably address community needs typically receive stronger support during public participation phases, while those perceived as incompatible with local interests often face substantial opposition.”

According to Webber Wentzel, adaptive reuse requires meaningful engagement with local stakeholders and a thorough understanding of market demand.

The firm says sustainable integration of repurposed structures depends on ensuring projects meet genuine social and cultural needs, requiring cultural sensitivity and local knowledge.

It says maintaining transparent communication and fostering collaborative relationships with regulatory bodies and community representatives throughout the development process significantly improves project outcomes.

With regards to community engagement and market considerations, the legal company developers should strategically target areas where redevelopment receives active encouragement, such as designated urban revival projects or zones with recent zoning regulation changes that incentivise reuse.

“These initiatives combat urban decay by promoting investment in designated areas, preserving existing infrastructure, and stimulating economic growth. However, South Africa's profit-driven private property sector remains primarily concerned with market viability and financial returns, making the economic feasibility of proposed reuse projects paramount.”

Addressing her first meeting with MECs (MINMEC) held in the City of Cape Town in March this year, Thembi Simelane, the Minister of the Department of Human Settlements (DHS), urged members of the executive council (MECs) for Human Settlements, metropolitan mayors and members of the mayoral committees (MMCs) to take advantage of the Expropriation Act to take over abandoned and hijacked inner-city buildings and repurpose them for affordable housing.

Jarvis and Jooste say that a realistic assessment of project viability remains essential, as not every adaptive reuse project achieves financial success. They say thorough feasibility analysis and financial modelling are crucial to ensure project viability. 

How to stimulate adaptive reuse

The legal practitioners say government intervention could significantly stimulate adaptive reuse through financial incentives, favourable interest rates, tax breaks, and streamlined planning processes.

They say such economic incentives can encourage private sector participation in addressing housing shortages, specifically including low-cost housing, through adaptive reuse, sharing the government's infrastructure development burden by engaging in financially viable projects that will also preserve architectural heritage.

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