Zabłocie is a Krakow’s post-industrial neighbourhood currently in transition. Numerous investments are being made there. The old industrial function (of this area) is disappearing year by year. Dynamic and large-scale transformations began in the 21st century and have continued to the present, influencing the functional-spatial transformation. Rapid changes have resulted in numerous problems that may intensify in the future. The annually increasing change seen in the Zabłocie neighbourhood, and the emerging doubts about the correctness of the changes taking place, make it necessary to undertake a thorough analysis and evaluation of the regeneration process. The purpose of the article is to present the conditions, barriers and perspectives accompanying the development of Zabłocie. An attempt was made to identify problems related to the ongoing functional and spatial changes occurring in Zabłocie. Emphasis was given to both the positive and negative aspects of the regeneration process in this area. The identification of the transformations that occurred made it possible to define contemporary problems. The following were distinguished as falling amongst the main problems: obscure planning and strategic documents, the lack of preservation of valuable facilities, planning chaos, special conflicts of interest (between developers, investors, residents and city authorities), the lack of parking lots, the occurrence of the gentrification phenomenon, and a shortage of public green spaces. A key task should be to take action to improve the way the area functions so that in the future it has positive associations. It was emphasised that the development and transformation processes do not always have a positive effect. In the case of Zabłocie, it is necessary to fully control this process in order to prevent the formation of negative phenomena in the future. In the coming years the research results obtained may have a positive impact on the anticipation and monitoring of the progressive regeneration of this area and will enable the occurrence of negative aspects to be identified. The results of the research may be useful during the analysis of the process of regeneration and the identification of problems in other cities.