Exploring the Viability of Converting Commercial Real Estate to Social Housing: The Post Pandemic Experience

Abstract

The COVID-19 pandemic triggered far-reaching socio-economic disruptions in South Africa, significantly affecting both the commercial real estate and housing sectors. Office vacancy rates surged due to widespread remote working, while the demand for low-income housing intensified amid rising unemployment and urbanisation pressures. This study explores the viability of converting vacant office buildings into social housing as a dual-purpose solution to these interlinked challenges. Focusing on the post-pandemic urban context of South Africa— with specific insights drawn from the Randburg area—the study investigates public perceptions, economic feasibility, and spatial considerations associated with such conversions. Using a mixed-methods approach that includes interviews with subject matter experts, the research identifies widespread public support for office-to-residential conversions, particularly as a cost-effective and resource-efficient strategy. Findings reveal that while real estate conversions are viewed as a means to reduce urban decay and accommodate low-income populations, concerns persist around zoning restrictions, infrastructure adequacy, and socio- economic integration. The study also highlights alternative uses for vacant commercial spaces, such as student housing and mixed-use developments, reinforcing the flexibility of adaptive reuse strategies. Contributing to policy and practice, this research underscores the potential of office conversions to enhance housing access and urban resilience while promoting spatial justice.