System transformation is a long-lasting process which is reflected in the model of property relationships and the way inhabited environment is created. This paper discusses the Polish urban area as an example of a neoliberal model of space transformation characterized by: atrophy of the public sector, arbitrary spatial order, and deepening spatial segregation. The transformation of the urban area in a neoliberal model has affected the legal order, spatial planning, privatization of housing resources, and public infrastructure. The paper is based on source literature, official statistics, and an analysis of Polish legal acts.