Glasgow's iconic former fishmarket The Briggait is being given new life by a colony of artists

• The magnificent Briggait Hall. Picture: Ian Rutherford

A boot scraper at the top of the stairs allowed them to carefully clean their footwear before heading into the Guildhall underneath, where they would negotiate the sale of their newly arrived stock – whether it was tobacco, spices or slaves.

Two centuries later the Guildhall was knocked down to be replaced by a busy Victorian fishmarket that became one of the city's most prominent landmarks, with the old steeple retained at its centre. But the fishmarket closed in the 1970s and Glasgow City Council, with its typical modernising zeal, decided the old Briggait – one of the city's iconic buildings – was no longer required.

There followed a campaign to save the building and an ill-fated 1980s shopping mall was put in place, but this also closed, and the building was again under threat. Since then, as the rest of the Merchant City became a byword for urban regeneration, the Bridgegate area has retained the feel of the old Glasgow, with "under the arches" second-hand shops and old pubs dominating the streetscape.

The fortunes of the Briggait took an unexpected turn for the better ten years ago, however, when David Cook walked through its doors for the first time. The chief executive of Wasps, an organisation which provides affordable studio space to artists all over Scotland, Cook was searching for a temporary home for artists decanted by the redevelopment of another studio elsewhere in the city.

"Somebody at the council said, 'why don't you take the Briggait, nothing else is happening there?' " said Cook. "They were almost apologetic about decanting us into this decrepit old building. But as soon as I walked in it was love at first sight. I couldn't believe that this amazing building was lying empty and unused. Developers always tell you not to fall in love with buildings, because it just leads to trouble. But that is exactly what happened to me."

Cook and his colleagues at Wasps formulated a plan to transform the Briggait into a major arts hub for the city. The artists moved into the crumbling rooms and the faded grandeur of the main hall. They have remained ever since.

Behind-the-scenes, plans were laid for the transformation of the building, 6.5 million was raised to carry out the work and the Briggait was slowly brought back to life. The decade-long struggle will be over this weekend when the Briggait opens to the public as the highlight of the Merchant City Festival, giving locals their first chance to see the refurbished courtyard and browse some of the 45 artists' studios and 24 office spaces.

But despite the smell of fresh paint and plaster that permeates any new development, the striking thing about the new Briggait is how much of the old fishmarket that remains. There are even remnants of the old Merchants hall, if you look closely.

"We were up in the old steeple, where there is a lot of restoration work going on," said Cook. "And we came across this old boot scraper planted in the stonework. It's fascinating to think that we might be scraping our boots on the very same bit of metal that the merchants used back in the 17th century."

Some reminders of the Briggait's past were less welcome, however, such as ugly heating ducts that had to be ripped out at great cost. Cook added: "We found these triangular, chrome tubes that decorated the shops in the 1980s shopping centre. We were trying to incorporate as much of the building's past into the redevelopment as possible, but we drew the line at that. This isn't Ashes to Ashes."

Thankfully, the main hall has been retained in all its Victorian glory.

The wrought iron balconies, columns and doors make it a large and airy space, which is sure to become a favourite with art lovers and visitors.

"People have said it reminds them of the main hall at the Royal Museum of Scotland building in Edinburgh, or Covent Garden in London. And I can see what they mean. It has that sense of scale and Victorian style.

It really is a tremendous space. This was a fishmarket, but the Victorians obviously believed in making things look good. They had a great sense of style, and it still looks amazing."

The redevelopment has excited many in the city's architectural and conservation sector. Conservation architect Dorothy Bell, of the Glasgow City Heritage Trust, claims the Briggait is one of the city's most important buildings and its renovation was long overdue. She said: "For a variety of reasons – age, history, familiarity, even notoriety – the Briggait is, whatever its condition, an integral part of the Glaswegian view of what makes Glasgow 'Glasgow'.

"Its name crops up again and again, not only in the city's many histories, but in poems, songs, jokes, anecdotes and reminiscences.

Arguably, it is a place of distinct character essential to the Glasgow psyche. Unlike some historic buildings in need of regeneration and restoration, the Fishmarket hall is unchanged in any significant way since its opening in the 1870s.

"This is largely because there were never any internal fixtures or fittings in the great open space of the main hall to be altered. The Briggait redevelopment project will contribute to the preservation of the heritage of the area, the architectural heritage of the City and will allow Glaswegians and visitors to once again enjoy this magnificent space in all its former glory."

And Historic Scotland's principal inspector, Ranald MacInnes, said: "The Briggait is a reminder of the exceptional 19th century drive of the Glasgow Corporation on an important historic site on the edge of medieval Glasgow.

"As a surviving collection of market halls and a heritage asset it is exceptional."

Architects Nicoll Russell helped ensure that the main hall is now completely opened up, with office space on the first floor balconies, occupied by several Scottish arts groups.

Among those taking up residence are established arts groups such as the Scottish Artists Union, alongside up and coming groups covering edgy artistic areas such as street art.

This weekend, under the impressive glass and cast iron ceiling of the central courtyard of the main market hall will be displays by some tenants, including aerial acrobatics from Conflux and dance performances by YDance and Dance House.

Wrought iron gates have been removed from the main public entrance, now flanked by temporary exhibition spaces. Discussions are ongoing into uses for the courtyard, though summer events could be more popular than winter ones. "It was designed to be a fridge because it's a fishmarket," notes fundraising manager Alison Fullerton.

That has not stopped new tenants falling in love with the Briggait, however. Jewellery designer Alison Macleod says the old and new influences within the building mirror her own work. The former tenant of Wasps Artists' Studios on Hanson Street in Dennistoun said: "I have old references but try to do it in a contemporary style, which is what they have done here. I love the old bits – they're just gorgeous. My grandfather would have loved the fact that I now work here, as he was from the east end of Glasgow and was very fond of this building."

Weaver Angharad McLaren has relocated to the Briggait from her former workshop, in a corner of her living room in the city's West End. "It's great to be in a place that is custom built for craftspeople and artists," she said. "I've been on the waiting list to get in and I'm really chuffed to be here."

Another tenant, abstract artist Stuart MacDonald, said: "There is a theory that artists should be working in some grimy old building to create great art. I don't subscribe to that theory. Being in a place like this will help the creative process, because it has been redeveloped with the artists' needs in mind. Being surrounded by other people working in this area will also be a great benefit to everyone here."

Claire Reda, dance development officer with mixed ability troupe Independance, said: "We were in a Unitarian church before and isolated from the arts. It's just great to be among all the different arts organisations that we have links with."

A unit for a cafe with windows overlooking the Clyde is still to be let, as are two of the four commercial shop units facing on to Bridgegate.

Paint has been stripped from the striking facades, which have four winged sea horse sculptures and Glasgow emblem stonework. The building's two smaller market halls, built in 1889 and 1903, have been only partially converted in the first of a two-stage development.

Work began on the revamp in August 2008 to create 6800sq m of studio, rehearsal, performance and exhibition space. Architects have designed a three-storey insertion known as Guildry Court Atrium, with sloping glass fronts. The adjacent Bridgegate Studio Complex is a series of small studios, which has a two year-waiting list.

The building also incorporates the 1665 Briggait Steeple, which is being renovated. The 17th-century structure is all that remains of a former hospital and guildhall in the Merchant City, which was demolished in 1817.

The second stage of the project aims to raise 3.8m to convert the untouched sections of the second and third market halls into a centre for physical theatre, dance and circus skills.

Rehearsals are under way in one of the market halls for Conflux's outdoor show Used To Be Slime, that will be staged in George Square as part of the Merchant City Festival this weekend. "Where else can you rehearse with a 4m-high cube with loads of stuff hanging off it?" asks Alan Richardson of Conflux, who will offer the area to visiting companies. "While it might be cold in November, it's free."

The first stage of the redevelopment attracted funding from Glasgow City Council (2.2m), Scottish Arts Council Lottery Fund (1.7m), Scottish Enterprise Glasgow (800,000), Heritage Lottery Fund (750,000) and Historic Scotland (500,000).

Charitable enterprise Wasps arranged an 80-year lease, at 1 per year, with Glasgow City Council and is responsible for upkeep, while artists are charged roughly 80 a month for studio space.

"We need to ensure it is going to be earning an income so that it can pay for the fabric of the building," said Cook. "It's a vibrant, historic part of the city and it's great to be part of that."

There is also a certain vibrancy outside the venue, with a fight breaking out at a pub round the corner and whole families spilling out of shady-looking clothes retailers a few doors along when the Scotsman visited.

It's still in the Merchant City but there is a sense that this is an area that hasn't quite been tamed. Much as it was – perhaps – when the merchants were haggling in the hall inside and slaves, spices and tobacco were making Glasgow one of the world's richest cities.

Cook agrees, saying: "This place has a lot of history. A lot of character. It is a bit edgy around here, but there's nothing wrong with that. Art should be edgy."