Revitalisation, which is defined as a planned process of restoring deprived areas, entails the difficult challenge of achieving long-lasting spatial, economic and social effects. In Poland, the accompanying inflow of European Union funds not only fosters a wide range of activities for entities involved in urban renewal, but also raises a question about the potential dysfunction of investments in deprived areas. Based on the experiences of Kraków, the paper presents some undesirable effects of projects implemented under the Local Revitalisation Programmes (LRP) in the years 2007-2013. The goal of the LRP projects was to promote the rehabilitation of deprived housing areas. The initial results, however, indicate that these projects are characterised by specific pitfalls, which include touristification, uniformisation, gentrification and social polarisation.