Gentrification is a general pattern of urban core transformation with significant variations depending on local contexts. It changes built structures or their functions but also the categories of people for whom these structures are intended. There are two basic approaches to the study of gentrification. First, the production-side approach focuses on restructuring the urban economy and emerging spaces suitable for gentrification. Second, the consumption or demand-side approach deals with the actions and choices of those who create or use gentrified spaces. One can recognize three types of gentrification according to the actors involved – these are: pioneer, profitable and state-led gentrification. The analysis of gentrification in postsocialist cities is a good occasion to explore the impact of the local context. The key analytical question is what types of gentrification exist and to what extent. In general, the majority of actors on both the production and the demand side are mostly foreigners, while the role of the public sector is different when compared with developed (capitalist) countries. Comparing Belgrade to other postsocialist cities one can see to what extent gentrification is influenced by the postindustrial economic development (advanced services and symbolic economy), and by foreign investments, also what influence the demand for gentrified space.