Changes in the existing urban structures that result in obsolescence and abandonment of buildings open up the opportunities for an alternative use of the existing building fund that would be in line with the current needs and aspirations of today. Conversion of obsolete buildings to residential buildings might be an optimal solution for the social and demographic changes that continuously influence and intensify the demands for new housing. The paper points out the quality of this approach and explores the extent to which conversion of obsolete buildings for residential uses may be a valid tool in sustainable development strategy.