The reuse of urban abandoned areas, which is constantly increasing, is necessary for urban sustainable development. This paper seeks to examine whether temporary use adopting participatory processes is an appropriate tool for the reuse of urban abandoned areas, while studying the implications for social capital by taking advantage of the social dynamics of space, reinforcing sustainable urban development. We focus on the case of the “Old Hospital” of Alexandroupolis, in Greece, a long-term abandoned area in the inner city. Adopting a socio-spatial perspective through the approach of Lefebvre and Remy, it highlights that temporary use of urban abandoned areas strengthens the socio-spatial dynamics, in conjunction with the logics of space production and appropriation, spatial practices, representations of space and representational spaces. The qualitative survey with local government and stakeholders shows how the production of space applies “top-down” governance and captures visionary scenarios of reuse via temporary use. The quantitative survey with locals identifies weak social capital, which poses obstacles to urban development and community's acceptance of the reuse scenarios. We suggest new logics of space production, through participatory governance for the temporary use of the urban abandoned areas that could enhance social capital and sustainable development, exploiting the social dynamics.